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totothedog
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A New Monetary World Order

There is now some talk of a rejection of the international monetary system of floating exchange rates which has existed since the US defaulted on gold payment in 1971.

Robert Mundell says he is in talks with China's government and suggests that a system similar to John Maynard Keynes' Bancor may be appropriate, though he also mentions a new gold standard.

The Bancor would be exchanged for the fiat currencies that form a nation's reserves and held in an institution such as the IMF according to Mundell. This would be little different from the current dollar system except that it wouldn't allow a single country, the US, to have all the benefits. The UK and US have both abused such a system by running up massive deficits. This forced the pound off the gold standard in 1914 and again in 1931. If adopted, it would allow all nations who receive the newly printed "bancor" currency to benefit from free money and tend toward a global hyperinflation. It would also be difficult to achieve a fair system of distribution of the newly printed currency across nations.

The alternative is to restrain the inflation and that would be a new gold standard, though other commodities may be used.

Gold has the property that most of its usage is for jewellery. If platinum were used as an anchor commodity, for example, the cost of catalytic converters wouuld be prohibitively expensive. Under such a gold standard, the price of gold would be at least $7,000 an ounce to cover the almost $7trillion in non-gold international reserves based on the 30,000 tonnes of gold the central banks claim to have. Hints that gold may indeed be used, is the Washington Agreement, which ostensibly restricts European gold sales to 500 tonnes per annum. There is also evident market manipulation of the price of gold. It seems that this is not just to restrain the gold price, but to limit its rate of advance upwards. The unanswered question which is also unasked is who is buying this gold?

[ Last edited by totothedog at 2008-6-21 06:55 AM ]

2008-6-21 06:35 AM

interesting (Steven Schreiber)
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It couldn't have been the World War... started by Germany... no, the Brits were just running up debts to buy yachts and silver tea services....

[ Last edited by interesting at 2008-6-21 04:46 AM ]

2008-6-21 06:59 AM

totothedog
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The Currencies Align

So, for years the US poodle Gordon Brown (who was formerly the korrupt and inkompetent finance minster and who is now the unelekted diktator) has been trying to persuade Europe to slash interest rates and inflate. This was as they were also moaning at China, with her red-hot economy, to increase rates. Then BNP Paribas and Deutsche Bank both trigger the credit crunch with alarmist statements. The US banks implode and are bailed out with Term Auction Lending Facilities and Troubled Asset Relief Programmes to target assets. Yet Paulson instead follows Brown in recapitalising the banks instead of freeing the toxic waste market. The dog that didn't bark is defaults on the toxic waste. Instead the big story is how the toxic waste is worthless. Surely even with the 15% default rates cited, these bonds are worth something? And what happens to the mortgage payments of the other 85%? Are they simply told to stop paying their mortgages?

Despite effectively nationalising these banks in the UK and US, lending is scarce. Even the UK's fully nationalised bank, Northern Rock defies the government and reduces lending rather than increasing it as its political masters demand in pantomime fashion. The FED, meanwhile brings forward a policy it had waiting in the wings, that of paying interest for deposits to the commercial banks, like the ECB. The magic number for interest rates and inflation seems to be 2.

So with the kredit krunch in place, interest rates around the world are slashed. Suddenly (with CPI typically around 4 or 5%) the big danger is deflation (again). Even Sweden which shows no particular evidence of any economic problem slashes interest rates by 1.75%. Now all yield curves are in sync. Go figure!

[ Last edited by totothedog at 2008-12-5 06:59 PM ]

2008-12-5 06:55 PM

greendragon
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Reply #2 interesting's post

mr. toto is an ank-glow hating writer.

ha ha ha ha ha

he is so very funny. He would love gold to have prices go up from US$850 to US$7,000 a tonnes....
wiping out a huge busines of jewelry which happens to employ lots of people in Hong Kong, Malaya, UK and India.

ha ha ha

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2008-12-6 12:51 PM

totothedog
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Bailout of the Pension Firms

Financial medicine of lower interest rates will only make us all sicker
The biggest credit bubble in human history is now bursting. What's happening goes way, way beyond the ordinary ups and downs of the business cycle.

By Liam Halligan
Last Updated: 7:52PM GMT 06 Dec 2008

Comments 36 | Comment on this article

Across the Western world, a self-imposed financial meltdown is now seriously damaging tens of millions of ordinary firms and households – turning their lives upside down.

It's not good enough to "avoid the blame game" and "look to the future". For, be in no doubt, this crisis has its roots in fraud – from the mortgage brokers who sold loans they knew would fail to the investment "professionals" who rolled-up the debts into securities and the ratings agencies that stamped them "triple-A".

We need tough questions and full investigations. Those most guilty must go to jail. Unless that happens, and is seen to happen, expect a repeat crisis in a few years' time.

Historians won't be kind to the central bankers who, having lowered rates in the aftermath of 9/11 and the dotcom crash, kept them low far too long – so pumping up the credit bubble.

I fear historical ignominy, too, for their counterparts who are now also slashing rates willy-nilly. That includes the Bank of England, which cut rates by a whole percentage point on Thursday, to 2pc. That's the lowest level since 1951, when King George VI opened the Festival of Britain.

The Bank's latest move also caused (albeit murmured) celebrations. Following its dramatic 1.5 percentage point cut in November, many say the Monetary Policy Committee "did the right thing". There are now calls for a "zero interest rate policy" – and the sooner the better.

The vocal retail lobby wants rates nailed to the floor as they're desperate for something (anything) that might ensure a "good Christmas". Powerful bankers hope ever-lower rates might generate an asset price recovery – so they can avoid "fessing-up" their remaining, still undisclosed, "sub-prime" liabilities.

But beyond those vested interests – and the commentators they seem to control – am I alone in seeing huge dangers in our "chain-saw" monetary policy? Are we not way past the point at which lowering rates does far more harm than good?

Bank lending has stalled. The latest figures show total secured and unsecured lending grew at an annual rate of just 4.7pc last month. But that's the same rate of expansion as in October 1993. And back then we didn't opt for a no-holds- barred Japanese-style monetary policy.

The current lending slowdown hurts, of course, because the Western world – and the UK in particular – is emerging from a decade-long debt-fuelled consumer frenzy. The end of that was always going to hurt but that doesn't mean we should repeat past mistakes and impose ultra-low rates in a bid to avoid the inevitable de-leveraging.

The problem, anyway, isn't the cost of credit but the availability. Credit won't become more available until the banks trust each other and the inter-bank market reboots. That won't happen until the banks are forced to reveal their potential sub-prime losses – as this column has often argued. Lower rates just delay that "day of reckoning" – by giving the banks more hope they can get away without "full disclosure".

Remember, too, that yanking down rates causes huge collateral damage. The MPC says rates of 2pc are necessary "in order to meet [it's] inflation target in the medium-term". Everyone knows that's rubbish. The Bank, against its better judgement, has been forced by its political masters to throw inflationary concerns to the wind.

But CPI inflation remains at 4.5pc – more than twice the Bank's target. While oil prices have fallen, the futures market says cheap crude won't last long. Monetary and fiscal policies are now also wildly loose, which will stoke up future inflation.

Our leaders have calculated inflation doesn't matter. Like the rulers of a banana republic, they don't care about monetary excesses because some other sucker will be in power when their ghastly effects are felt. Ministers can smash-up the monetary regime but they can't ignore the currency constraints. The dollar's reserve status gives the US scope (for now) to print money and cut rates with abandon. But the UK cannot afford such luxuries.

A month ago, you could sell a pound for $1.80. Now, you'd get $1.46. A euro was recently worth only 64p. Now it's equivalent to 86p – the pound, on a trade-weighted basis, at a 13-year low. By weakening sterling, and making imports more expensive, lower rates cause inflation even when the economy is slowing. And – lock me in the Tower for saying so – surely our monetary policy, combined with gargantuan government borrowing, could soon cause a run on the pound.

Even if we avoid such a disaster, a weaker currency makes it harder for the Government to sell its debt. The UK needs to sell £150bn of gilts in each of the next three years – more than triple the recent annual average.

Then there's the impact of ultra-low rates on savers – the great unsung losers when the MPC hits the panic button. Weighed-down by debts and insolvencies, the UK desperately needs to save more – so providing the deposits, and stability, that will get credit moving. Half our workforce – 13m people – have very little or no savings at all.

Yet, here we are, trying to repair a debt-crisis with more debt, a lack of saving by discouraging saving further. Through political weakness, and regulatory neglect, the West brought this crisis on itself – and the rest of the world. If that wasn't bad enough, we're now making the same crisis even worse.

The problem all along was the massive liabilities of the korrupt financial institutions in the West. In particular, the pensions obligations and in the US, the medical obligations.

The fake deflation and kredit krunch have been induced to cripple bank lending and reduce further savings. Meanwhile the TARP has been reneged on and instead of buying up the toxic waste, the krooks have "recapitalised" the banks. This means the krooked financial institutions with all those pension obligations have been gifted fiat kurrency to pay for those massive obligations. With ERISA legislation in the US and similar in the UK forcing pensions companies to buy bonds, there's now talk of the banks being forced to buy them too. Recent bond yields show that purchasers have been buying bonds even when they're offering negative real rates of return. Hence the inflation will be meted out with the bond market absorbing the inflation and investment returns being negligible to negative.

As a side-note, the korrupt and inkompetent Gordon Brown, claimed the credit for the recapitalisation idea even though it's clear that the US ERISA law was always headed in that direction. It was only because Paulson had to renege on the original purpose for the TARP that Brown got away with claiming responsibility for it. But the Labour party has been stealing all the Conservative party's policies too. In fact, the "lost decade" in Japan could well have been the guinea pig for this scam.

As the article above points out, there is a big risk that the markets won't buy it. The Anglo kurrencies will kollapse, though according to Bloomberg's Alex Tanzi, global reserves (not composed of gold) have been declining since late August. Although the article above claims the dollar's reserve status will support it, that too is under assault as nations rebel. Hence they will have to find a way to stabilise these fiat kurrencies and that is increasingly looking like a gold standard.

2008-12-8 07:43 PM

totothedog
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Kurrency Restriktions in Place in UK

Anyone travelling out of the UK will be prohibited from taking any cash out of the kountry. This is the purpose of the Homeland Security in Amerika and similar TOTALITARIAN POLICE STATE measures in the UK.

In Argentina, those who foresaw the consequences of the run on the bonds shifted money abroad. Those who were unaware and banked with the Western banks, had their money confiscated and converted to the failing peso.

Of course in the Anglo states IT'S FAR WORSE. Many are leaving the country such as Jim Rogers who has moved to Singapore and said his two daughters, who are not yet of school age, will grow up in Asia and speaking Mandarin.

2008-12-9 01:33 AM

totothedog
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No escaping Debt

QUOTE:

Originally posted by totothedog at 2008-12-8 19:43
The problem all along was the massive liabilities of the korrupt financial institutions in the West. In particular, the pensions obligations and in the US, the medical obligations..

Of course, the massive liabilities are not just the financial institutions being fraudulent. In the 1980s interest rates were historically high because of Volcker's ramping up of interest rates to over 20%.

Savers in Amerika could buy a long bond offering these high rates and live on easy-street. Volcker's high rates were to compensate for Nixon's default on gold. In turn, Nixon's krookery was because Amerika had been living beyond its means since the end of WW2.

So, you see, economics is governed by mathematics and in mathematics, there's no escaping reality. Amerikan krookery has led it from one crisis to another.

This has to be the end of the line for Amerika. Debt is the only memory the economy has and Amerika has THE WORST DEBT OF ALL TIME.

2008-12-10 07:35 PM

greendragon
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Reply #5 totothedog's post

The Amerikan Regime had no choice, they were financing a war to CONTROL CRUDE OIL supply!

ha ha ha

Read "self imposed meltdown"....

ha ha ha

You are good, mr. toto-dog, very imformative indeed!

ha ha ha

Green DRagon
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2008-12-11 11:51 AM

greendragon
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Reply #6 totothedog's post

Does that means that there would be chance for appreciation of the English Pound in the next 3 years for bond buyers?

hmmmm

$450 billion worth of gilts to finance new spendings and refinance old debts. (equvalent to only 5.5% of the English economy)

pretty cool....

Green DRagon
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2008-12-11 12:03 PM

matrixNZ
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No I havn,t seen anything on any board that closly resemable the real reason for the meltdown it was nothing more that controlled electronic money laundering and mass write downs to remove evidence from the banks balance sheets at the same time taking control of the money through accquiring Banks asset at 10 cents in the dollar,mass influx of stolen liquidity over the l;ast twenty years a fixed term through. Cheap corporate private Credit cards, Government credit, Oil companies Pricing, Government War momgering,billion Insurance Fraud, import export fraud, FX Fraud, Government Department Fraud via Tax revenue Fraud, boasting wall street margin accounts, on all stock exchanges. mass dumping to get laundered profis, then purchase the stock at 10 cents in the dollar. Thats why its a global melt down all Western banks and Central Bank assisted with the help of corrupt regulators the usual suspects. Organised Crime. time for the RICO statutes. so the liquidity is still their its just moved to a single pocket but it can,t be recycled yet as its in new ownership along with billion of dollars in assets. write down the debt until the market returns bingo theirs our restablished value. In the mean time you go unemployed. The next fraud global warming fraud carbon credit trading fraud. interbank fraud Central Bank fraud.Time to decouple from the private central bank regulator The Federal Reserve the orgestrator.

2008-12-11 05:36 PM

#10

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Sounds great but I dont think it will work

2008-12-11 05:49 PM

#11

totothedog
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No Sterling Is Krap

QUOTE:

Originally posted by greendragon at 2008-12-11 12:03
Does that means that there would be chance for appreciation of the English Pound in the next 3 years for bond buyers?

hmmmm

$450 billion worth of gilts to finance new spendings and refinance ...

With a budget of £43bn now rocketing over budget to £87bn and next year £118bn of 8% of GDP, Sterling has kollapsed and can't even run to the EU because it violates the 3% rule.

The UK has the worst trade deficits of all time, the worst household debt of all time, the worst budget deficit of all time, the worst infestation, the worst police, the worst judiciary, the worst unelekted diktator, the worst food, the worst, drink, well just about the worst of everything. It is the land of krap as you well know.

2008-12-12 05:44 AM

#12

greendragon
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Reply #12 totothedog's post

You mean Bpd430 billion....don't you?

how come i don't have the Bpd key on my Amerikan Designed computer keyboard, and you have?

ha ha ha

Yes, bad, bad....english krap sterling, just lost 25% of it's value....
and needing a lot of investment or loans from overseas for it to regain it's value...

Green DRagon
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2008-12-12 12:14 PM

#13

totothedog
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QUOTE:

Originally posted by greendragon at 2008-12-12 12:14
You mean Bpd430 billion....don't you?

how come i don't have the Bpd key on my Amerikan Designed computer keyboard, and you have?

ha ha ha

Yes, bad, bad....english krap sterling, just l ...

Remember, the UK is a krappy little kuntry as you know.

2008-12-13 04:49 AM

#14

greendragon
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Reply #14 totothedog's post

yeah, krappy little kuntry, with krappy inglishers.....

herr toto komrade!
and krumbli kurrency to add....

worse, it not just the UK, it's kanada, auskraplia and new kealand.

ha ha ha

and the krappy half sino, half ank-glow malaya, singapore and hong kong as well.

and that good for nothing south Afrika, always freaking out....

ha ha ha

Green DRagon
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2008-12-13 11:41 AM

#15

totothedog
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Whereas Your Inane Posts are Nonsense

QUOTE:

Originally posted by greendragon at 2008-12-11 11:51
You are good, mr. toto-dog, very imformative indeed!

It is simply farce to suggest that anyone is running to the kollapsing, fraudulent dollar as a safe haven. The only reason it's been rising is that all the other central banks have been slashing interest rates dramatically. For the EU, this meant reversing its recent interest rate hike. Even Japan cut interest rates by a token 0.2% to 0.3% and the dollar still fell to its lowest ever level against the yen as the yen carry trade unwound.

With more global interest rate cuts in the pipeline, carry-traders would lose money if they borrowed dollars and then swapped them for a higher rate currency as that currency fell. And once global interest rates hit near-zero, the opportunity for carry trade will be non-existant.

Meanwhile, to cripple the inflationary effects of the zero-rate policy, the credit crunch was contrived. In the UK, the banks have been nationalised and a 12% coupon demanded, this makes it impossible for them to lend out at the 4% or so that the UK government pretends it wants.

It is also obvious that the whole korrupt banking system in the world's most korrupt nations, that of the Anglo Amerikaaners, is imploding. The banks cannot be trusted. The biggest banks in the world defaulted in Argentina and look set to default again. The term counter-party risk has been prevelant especially with regard to the holding of physical gold. Llewellyn Rockwell recommends, for example that you buy gold and don't let ANYONE else store it for you.

2008-12-15 08:21 PM

#16

totothedog
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It's The Carry Trade

"banks will be forced to cut back lending to the rest of the economy as they divert funds into government debt" and "cost UK banks (US$1.91) billion based on an estimated 1.5 percentage points a year of lost revenue" and "banks will be forced to cut back lending to the rest of the economy as they divert funds into government debt"

- Mogambo Guru, "How low is too low?"

Of course, the Anglo Amerikans use one scam to recover from the last scam; a sort of Ponzi scheme.

The Korruption will only delay the inevitable.

2008-12-16 06:20 AM

#17

totothedog
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Deflation is Bogus

So with "inflation" in the UK, as measured by the heavily rigged CPI, falling to 4.1% and more than double the supposed target, we have Mervyn King saying it will fall precipitously.

Yet what was recent government policy but to knock 2.5% of VAT off from 17.5%. That alone reduces prices by more than 2%. The price of crude oil may have fallen from $147 in July, but is the Anglo attention span such that the meteoric rise from $10 a barrel in 1998 is already in the Orwellian memory hole? In line with the new deflation policy, oil has failed to rise in price despite OPEC, in conjunction with Russia promising big cuts. Yet whenever there's even a rumour that aligns with US policy, the price movement is attributed to that rumour by the Anglo Amerikan, anthrax threatened, propagandistic media.

Just how dumb are these Anglos?

The sudden switch from fighting "inflation" by slashing interest rates even with inflation double the target, to fighting "deflation" by also slashing interest rates is a pantomime farce!

The bailout in Amerika is scandalous. Imagine going to the casino and making big gains until you lose and lose so much the government offers you a bailout. What kind of "free market" is that? No such thing as a free lunch? Just how dumb are the Amerikaaner tax suckers who were once led to fight the War of Independence over a 3% income tax, yet now bend over and take it up the wazoo like the supine sheeple they are even as they lose their homes, savings and jobs, having already funded illegal wars and a defence budget in the stratosphere? As well as the Senate slapping on an extra $115bn of pork for the TARP, the US kar industry now wants to stick their noses in the trough too.

Michael Rozoff's latests Lewrockwell.com article explains why the FED may be thinking of issuing its own bonds; to soak up the extra liquidity which is currently being held back by the induced credit crunch. Just as the FED has trumpetted its "inflation fighting", it now claims to be wary of deflation. Why then, would it be considering issuing its own bonds?

Another farce is the cutting of interest rates when overnight loans have been zero for some time. Just who is buying bonds that offer no return at all? My money's on a lickspittle Brown-noser, fascist, unelekted diktator, living in a poodle state and who has previously gifted Amerika cheap gold, cheap Aid debt and bought millions of doses of worthless Rummyflu and Prozac to dope the Poodle water supply.

2008-12-19 05:49 AM

#18

greendragon
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Reply #18 totothedog's post

yeah, the krappy Ank-glow Nazi government still have the kapability to do minting......far more than than other krappy governments....

ha ha ha

so much for krappy inglishers!

Green DRagon
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2008-12-24 12:18 PM

#19

totothedog
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Happy New Year!!

The bottom line is still the massive pension liabilities in the Western ekonomies and how to avoid hyperinflation.

Having blown serial bubbles, which Alan Greenspan claims he cannot see, they have induced a credit crunch and bogus deflation. The bond bubble that burst in 1994 is being re-inflated with government bond yields even falling below zero. The dot-com bubble burst in 2000 and the housing bubble in 2006 in the US. Hence assets in the real ekonomy will all continue to fall in order to impoverish the masses and prevent a further build-up of pension liabilities.

This provides the excuse for deficit spending and a continuation of the kurrency debasement.

Government bailouts will nationalise banks, preventing take-over by foreign sovereign wealth funds, whilst also paying for the deficit spending with coupons of 8% or more. Such high coupons reinforce the credit crunch as well as kontrolling the banks' investments; probably government bonds to reinforce low rates.

These bailouts also "recapitalise" banks and print the money to pay off the pension liabilities, thus pushing the inflation forward, which is also stymied by the credit crunch to make it a slow-release hyperinflation.

So the banks can be thought of as a previously empty bucket of promises to pensioners which the korrupt Anglo Amerikan governments are currently filling with massive liquidity. The bucket also deliniates between the real ekonomy and the financial one. Normally, the banks lend money out via a hole in the bottom of the bucket, but the kredit krunch is a plug they've installed at the bottom of the bucket which only leaks a little inflation to the masses. The tap on the side of the bucket is the payment of those pension liabilities with the, now, debased kurrency.

2009-1-1 02:58 AM

#20

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