Wednesday, November 16, 2011

Ancient Monetary System Mechanics…

"New"__The Main Event – The U.S. Debt Crisis

S___, the solution was offered by Plato some 2400 years ago__Nobody has eyes or ears__Yet...!!!

"--- The citizen of the ideal state will require a currency for the purpose of every day expenses; This is practically indispensable for workers of all kinds and for such purposes as the payment of wages to wage earners. To meet these requirements, the citizen will possess a currency which will pass for value among themselves, but will not be accepted outside their own boundaries. But a stock of some currency common to the Hellenic world generally i.e., of international currency, will at all times be kept by the state for military expenditures or official missions abroad such as embassies and for any other necessary purposes of state. If a private citizen has occasion to go abroad, he will make his application to the government and go; and upon his return if he has any foreign currency left over in his possession, he will hand it over to the state receiving in exchange the equivalent in local currency." Plato

I and hundreds of heterodox economists have followed on in Plato's footsteps, as did Benjamin Franklin, in offering similar systems' models__Not our fault, if the world is too dumb to listen... It seems the world can't hear intelligence__only inanity and insanity...

"--- We need a fixed value monetary system. At the present time, we have none. Under floating exchanges, America is simply a powerful ship on an ocean, with no rudder. Old gold, silver, and other known standards will no longer work. They will not work due to the massive increases in communication's speed, the varied endowments of nations' natural resources, and encrypted international speculative opportunities. Therefore, we need a new system. INTERNAL EXCHANGE CLEARING is such a system. It is an entirely new fixed value enhancing - [production standard] - monetary system, to benefit all humankind."

You can argue any of the thousands of other models, to the ends of the Earth__The only one that works, is the one that offers a clearing system of currency mechanics, to eliminate inter-nation manipulation__Which the above systems mentioned__Do...

"---There's a wolf in the system... He was born of your laws. He roams from Maine to California - Alaska to Florida - Hawaii to D.C., and Chicago to New York... He is a hungry wolf. He tears into your hind quarters, clear to the bone, with a vicious set of teeth. He is simply after your wallet. He is the [international] speculation wolf, and he operates legally under your floating exchange law system, to rip the very soul from your nation. He will succeed unless you try to understand how he feeds............"

"If we set a [production] standard of value (to control inflation and exchange rates) in one fifth of the entire economy, we can make real unlimited use of the printing press –– while liquidating all state debts."

This last one really makes you choke, don't it S____. A high enough constructive intellect can understand it__though...

S____, just to show you a major fallacy in your thinking, I'll take this example statement of yours...

China is purposely buying up dollars to manipulate their currency low. They are simply central banking every Treasury Dollar they buy from us, even though the value is slightly decreasing, but not by much, as China is controlling the band within its own trade-weighted advantage point. This mechanical trick actually puts extra pressure on China's own internal poorer classes, as the money's not added to its real internal economy, from the Treasury purchases, as doing so would raise the value of China's currency, which China is fighting to its last breath, to keep from happening. The total cost benefit analysis to greater China's position is net positive, by being able to buy cheap commodities, metals, etc., from many nations pegged to China's currency, thus keeping these costs low, while exporting finished products to the high currency nations, which China is Purposely creating, by this Treasury Manipulation Market, a manipulated low currency export status__While the Rich nations all suffer, by exporting jobs and Treasury values to China__Due exactly to China's Manipulation Policies__It's called Mercantilism, and is the oldest unfair trading practice in all of economic history... All you have to do to see who's guilty of currency manipulation practices is look at the global figures for massive balance of payments surplusses__And you'll find China leads the pack. Years ago, the gold and silver standards re-balanced the balance of nations' payments, by forcing nations to give up gold and or silver if they didn't. No nation wanted to then lose its currency base, so re-balance they did__But, with the present's free-for-all fiat-system, there's no means of punishment, in the international system, to force the older style re-balancings of out of balance, balance of payments__Thus we got this giant fiat-system of collapsing imbalancing of currency systems__The only cure of which is New Clearing System Laws Between Nations To Re-Balance The National-Fiat-Frauds...

It's not difficult to understand it S____... It just takes looking at it, at the Balance of Payments Reality Position... China is simply hoarding, just the same as someone stuffing their bank account in their private mattress, so the rest of the economy has no access to the funds__which clearly subtracts from the Global Economies__Which is exactly what all Massive Balance of Payments Surplusses are truly doing__These nations are robbing the Global Economies Blind__And most all political and economic pinheads are too blind to see it is nothing more than a Massive Global Currency War__Taking Place__Now__Everywhere...!!!
Comparative Advantage and Supply and Demand have turned to Outright Comparative Dis-Advantage, Through Massively Imbalanced Currency Manipulation Mechanics... So, you better start looking at the real figures, say at the I.M.F., B.I.S. and C.H.I.P.S....

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