China Pushing to Replace Dollar with Yuan as Reserve Currency of the World

More and more countries are moving away from the dollar and trading using the Yuan, as China continues to make their push to replace the Dollar with their currency as the Reserve Currency of the World

 

Global Economy 2012 – One World Currency Approaching?

As we are diving into 2012 I want to take a minute to talk about a couple of things I see going on in the global economy that I think will have an impact as the world heads in the direction of a one world currency.

 

 

 

 

 

 

What happened to our money, to our country?!

By: Joshua Gayman

The reason Occupy Wall Street is happening right now is because there is a huge movement of young people who want to reclaim this country from corporate interests. These protesters feel that our political system has been hijacked by Wall Street and their corporations. Not only that, but they feel that our elected officials now serve the interests of the wealthy upper 1%, instead of “the 99 percent.”

I’m gonna write..Dang it!!! I’m gonna write…

It’s not that I can’t do, but that I can reach more people online than I can on the street. Also, I can capture attention. Why protest when I can speak more clearly through my mac sitting in my bedroom. I don’t oppose the Wall Street crashers. They are frustrated. They feel that the system has hijacked the way of life their parents had and that they planed to continue, and they are right.

The solution is that we need to reclaim our own money. If America acts now, we still have the financial and political power globally to reclaim our position. China will fight us hard, but we really need not compete directly. We don’t have to buy Chinese. If we open back up the factories we can put millions back to work and produce value back into our society. My God, can you imagine what stuff we would have cooking right now if everyone was working hard to better society? We are geniuses. I don’t really know why, but for some reason us Americans kick ass. In all actuality, I don’t think we have anything that any people don’t have. It’s just the timing and in my honest to God opinion, it’s God’s plan for this time.

So how did we really get where we are now? The world has turned upside down in the past 3 years!!

Well..Life happens. The only thing constant in this world aside from God’s love is change. Because of this thing called time, everything constantly evolves.

So what happened?

1700’s – USA is founded. We say F U to Britain because we do not want to use their currency and pay their taxes anymore. We draft a constitution that we will never let another entity print our currency and we will never have an income tax. We kick their butt and start our own country on free market using gold to back our currency. As an interesting sidenote..The South made their own currency during the Civil War, but with no gold backing it inflated to zero value..

We go from Wild West to Industrial Revolution. Life is changing rapidly with new mechanics. Lots of production is created, in fact, it is exponentially created because of leverage and tools.

Let’s face it..The media is about as honest with us as a politician. So when you think about it, how do you really know what you learned in school was even truth? I know I hear you already, “Oh here we go, another conspiracy article..” NO – Listen to this: John D. Rockefeller founded the US Board of Education in 1903. What did  that guy want with the school system? And since he did buy it..Why didn’t he add education on money into the school system? Why do we still have a school system that is hundreds of years old and was created to manufacture military? Now here is my point, we have no idea if the things we read in our history books are true. History is not math, gramar, or science. History is one of the biggest tools used for manipulation and deception.

Moving on…

10 years later, John D Rockefeller, along with other ultra rich men such as JP Morgan, and Paul Warburg, founded a company and called it the Federal Reserve. This company would issue currency to countries. The trade off that they could offer to the Congress was that if they printed the money, they could give it to the government. Scandals in the Congress are nothing new, and the Federal Reserve Act passed.

Time for an income tax!!

The income tax was supposed to be to fund WWI, but we still pay it today, 100 years later…

20’s…HUGE recession, but it was removed from Rockefeller’s history curriculum in our education system that he hijacked.

GREAT DEPRESSION: Debt from WWI is too much to pay. we need more currency. The government confiscates gold and then raises the dollar-associated value to it by over 50%, hijacking over 50% of the real money in circulation and jeopardizing our whole system.

WWII – America wins. Bretton Woods Act is passed, making the United States’ currency known as the Dollar, the Reserve Currency of the World. Oil is now traded in dollars, making it so that other countries must exchange their currency for dollars and then purchase oil. This causes the value of the dollar to increase drastically and therefore makes it easier for the United States to get credit from foreign investors who are eager to invest in the luxurious American economy. After all, their debt is backed by the good faith of their tax payers.. Remember too, the Congress can now go the Federal Reserve whenever they want, increase their “debt ceiling,” and borrow more money.

America rocks like rock stars for 27 years, get involved in some turmoil overseas, increased the debt more. Then Nixon said let’s have a REALLY big money supply, since everyone in the world treats our dollar like gold! He totally cuts the link between the Dollar and gold. Expanding the money supply to infinity.

A few years later, the “Employee Retirement Income Security Act” is passed, making it so that the tax payers are responsibly for their own retirement, and the burden is lifted from corporations. Birth is given to the IRA and 401K. This makes it so that retirement money flows to Wall Street and they can operate the money as a ponzi scheme, with money from new investors paying out the old people as they retire. *Another sidenote:  Social Security(Which was enacted during the great depression), also operates as a ponzi scheme, with the money flowing into the system from young workers’ paychecks and out to the retired older folks. The money retirees paid into the system has been spent.

For nearly 40 years, we lived out of our minds!!! There were recessions and expansions, but the reality is that no matter what, we could always get more money because we had a credit card with no credit limit. The credit card company was the rest of the world buying our debt, and the Federal Reserve company selling it.

Our economy boomed and we just kept continuing to kick ass. We got fat, lazy, and greedy, but we stayed smart. We powered through at the front of the line with our advances in technology, especially with computers and the internet. We created several huge bubbles with the stock market, precious metals, dot com, and real estate, but we never thought about the larger bubble that was emerging around all of the other bubbles. The credit balance that we had…The biggest bubble of all, debt!

In all reality each bubble helped us. Because off of each bubble, we could sell more debt, increasing our limit. The last one we benefited from was real estate. When we all could buy a house or re-finance one and get a rediculous amount of money for, with nothing down but a signature. How bitchin is that!? You could make $30,000 a year, live in a $300,000 house, drive a $30,000 car and have mad toys. All you had to do was refinance your house when you needed more money to cover your bills.

Then it popped. It popped because people could not afford the minimum debt payments on their mortgage payments anymore. Even with interest only loans and low interest short term adjustable loans, the mimimum monthly debt was just too much. The world quickly realized that the actual real estate was never truly worth what we sold the debt for. Values plummeted, but so did families losing their homes.

The government tried to keep the bubble going(and still is) by lowering interest rates, again and again and again. The Federal Reserve is happy to do so because it preserves the system of debt. If we stop selling our debt, they cannot continue to gain power over us for our indebtedness. Also, with all of the other countries attached to our debt system, known as the dollar, it keeps it easier for them to have a leash on the entire planet.

With mortgage payments stopping, lending stopped. Now, even with super low interest rates, the people are simply not allowed to take on anymore debt, unless they still have some collateral left that they are willing to put up, and most don’t..

With a country that’s whole currency system operating on debt, not getting any more loans, the economy dried up.

2007 – The banks failed because nobody could afford their loans. They sold a product that was risky, and they lost. The collateral from the loans was not sufficient to cover the exposure they had. Congress decided that if the banks failed, lending would stop, people could run to the banks to withdraw their money, and the economy would die, so they took on more debt from the federal reserve, pinning the tax on the US taxpayers back still(but now getting exponentially larger) and marched on with the debt system, even tho it was by all means bankrupt. They gave it to the banks, “to lend to the people.”

The banks didn’t loan shit to the people. The rest of the world gets mad(particularly China), because we are now exponentially increasing our money supply, and thus devaluing our debt to them.

With no buyers left outside of our country to buy our debt, and no assets to pledge them, the company knows as the Federal Reserve decides that they will just buy our debt themselves. This keeps the cash flowing into the United States, and stays off a collapse for the short term. The money supply keeps exponentially increasing, as prices rise on exports to combat the artificial expansion of our money supply.This is what is known as “quantitative easing.”

Meanwhile, people keeping losing their houses, their jobs, their businesses. Everyone keeps waiting for life to go back to normal. But it doesn’t happen…

The stock market goes up and down, but it doesn’t have any effect on anyone. The people that have money seem to keep getting bigger. But everyone you know is broke and jobless. People hear what the banks did with the money that they were given that was supposed to be for lending. They hear about the bonuses to all of the CEO’s that took their house.

Student loans never stop, but everyone is starting to figure out that the debt created by going to school is huge and they aren’t making nearly enough to make it manageable, if they are making anything at all.

Let’s face it…The debt system is broken. We still have some HUGE values that we contribute to the world. I like all of our professional sports, Google, Aaple, Nike, I could name many many more. But, we don’t have anything left to pledge as collateral to keep receiving debt to live on. We already pledged it up….

Present Day:

We go to Wall Street. We protest about the greed and corruption. We don’t go the the corporation the Federal Reserve who created the system, instead we go to the investors on Wall Street who’s job is to keep money flowing into the market to satisfy the system and pay our people’s retirement’s through pensions. Without Wall Street, many retirees would lose their retirement. Retirees like teachers, firemen, and police officers.

We need to take back over our systems. It’s sad to say, our currency is falling to zero like a slowly bleeding cow. And there is nothing anyone can do to stop the bleeding. We try to stop it with band aids such as expanding the money. But expanding the money without expanding the demand for the debt can’t create real value. So the dollar will die.

Value is coming back. Value is king. If you have a trade, great. If you don’t, learn one. What do you love? How can you do that so as to benefit society? If we can get back to creating real value, they’ll keep buying our debt. But we should not let Congress give away our value to the Federal Reserve. We can sell our debt directly if we are going to sell it at all.

What will happen next?

I don’t know.

I suspect that to preserve the system of debt, the central banks will create a globally currency. The world will buy into it because they won’t have a choice. The debt bubble in Europe popped too. Asia is next. The Chinese have been devaluing their currency to try and combat the inflation of the Dollar. The global currency will be digital, as in all actuality the Dollar is now digital itself. I don’t know which part of the world will receive the biggest inflow of the global currency, but I suspect that it will be the gographic location which produces the most value. Competition is inevitable.

No matter what, we aren’t here for a long time, we’re here for a good time…

Peace and love,

1.

joshua gamen world currency

One World Currency

By: Joshua Gamen

Could there be a one world currency?

As a citizen of the best country in the history of the world, the United States, I would have said no 5 years ago. I would have told you that’s a terrible idea. The United States is home of the US Dollar. And to the United States government, the Dollar represents a global license to print money. This is because the Dollar has stood as the Reserve currency of the world since 1944(google: Bretton Woods). No other country in the world has the same power to literally just print money with a printing press, because other countries have to convert their currency to Dollars before performing global trade.

But the times, they are a changin’!

Fast FWD 5 years to present day

All of those dollars printed since 1944 were leveraged further using debt and fractional reserve banking. We are all familiar with how debt increases the money supply. Fractional reserve banking is the process of expanding the money supply further by banks issuing new loans every time a deposit is made. This means when u put $100 in the bank, they turn it into $1000 in loans.

After decades of printing money into existence and operating in a system ran by debt, the house of cards crashed in 2007. A huge run on the system occurred from ’02 to ’07 when Debt flooded the world like never before. The country thrived as they lived on the money the banks loaned them. Loans that existed off of money which was printed into existence from nothing and charged interest on. Banks thrived as housing was used to further leverage the money supply by being used as collateral for more debt. But 2007 exposed the system. In 2007, the economy fell like Jenga when society could no longer make the minimum interest payment on it’s debts. Banks tried to patch the hole in the bubble by dropping interest rates to zero so that the system could stimulate debt to stay afloat, but it was too late. The debt was already too much to repay.

The banks then had to foreclose on the houses because they weren’t receiving payments. The banks want interest, not rent, so the houses are useless to them. This caused a flood of supply to the housing market and drove values down. The housing crash was absorbed to them because they got reimbursed by insurance companies like AIG. That is what then caused the stock market crash in 2008. Fannie and Freddie crashed first, then huge public insurance companies like AIG went bankrupt from reimbursing the banks for their foreclosure losses. Financial stocks tumbled and brought the other sectors down with them, causing the stock market to fall 50 percent.

The banks needed the insurance companies to keep bailing them out, so they got the government to issue that huge bailout. In addition to their beloved insurance companies receiving hundreds of billions of dollars, they got plenty for themselves thrown into the package. They then used their money to buy up the little banks, furthering their empire of banks.

Now the banks were posting record profits from the money they had received from the government and insurance companies, but the public was still in shambles. Even with the government dumping trillions of Dollars into the system, unemployment soared as housing continued to crash from the continually increasing supply of housing led by foreclosures, loans stopped and trade halted, both globally as well as on a local scale.

With the US economy on life support, the rest of the world stopped investing in it. This means foreign nations stopped purchasing our debt. To keep the economy going, more Dollars were printed and injected into the economy, which devalued the existing dollars. Now we are on the brink of another Jenga. This time the collapse would be much more devistating, as it would be caused by the exposure to the currency bubble that the Dollars has been in. The cause of the bubble: Too much currency in circulation. The problem is that there are significantly more Dollars in circulation than there is production of goods and services. This inevitably leads to the increase in prices to all goods. This also means, unless you are getting a pay increase to adjust for the increase in prices, you won’t be able to live the same as before. In addition, if you have money in savings, it will now buy you less than it would have in the past.

Foreign countries have took notice of our currency manipulation, and they don’t like it. Most notably China, who is fighting to have their currency, the Yuan, replace the Dollar as the reserve currency of the world. The reason they don’t like supply of Dollars flooding the world is because it means the interest they are collecting from investing in the US is being paid back to them in Dollars, which are lower in value than they were when these foreign nations invested in the US.

A currency crash, which is economically referred to as hyper-inflation, would result in a world depression.

I believe that we will see this happen very soon, as we are seeing the value of the dollar plummet, while at the same time more and more dollars being printed. This is why commodities such as oil, gold, and silver have been skyrocketing since this mess began in 2007.

So what will happen when this happens? I believe it will cause a global reliance on government, which will then cause one of two scenarios. The first scenario being a merge of the biggest nations in the world into a one world government, and the second being a world war for control of a world government. Either way, freedoms will be lost and quality of life diminished. But I will assure you, someone, somewhere, will be gaining power from the whole thing..

State of the Union…”Don’t nothin ever change??”

By: Joshua Gamen

We already knew President Obama had polished speaking skills, now he’s got jokes too. I must admit that I really liked some of the points made by President Obama in his State of the Union address to the nation. I liked how he was optimistic and talked about the positives of our future. I was frustrated however to see him ignore huge issues and appear to say exactly what the masses want to hear, despite his actions in office.

I did not like how the President began the speech by talking about how great the recovery is in the first 5 minutes, stating that Corporate profits are up as well as Wall Street’s with the Dow Jones. He failed to mention unemployment is still crucifying us and the dollar is becoming worthless, or that millions of Americans are still losing their homes to the banks..

It frustrates me that politicians think they are economists. Sometimes it frustrates me that economists think they are economists tho too(Hah). In relation to the deficit(the governments budgets which currently spends more than it takes in.), President Obama talked about the cuts they would make for hundreds of billions of dollars. He failed to touch on the fact that we are a few months away from hitting the federal debt ceiling(the limit in which the government has reached it’s limit on how much it can borrow to spend, which can only be raised by an act of Congress.) The truth of the matter is, when we hit that debt ceiling later this spring, only one of two things can happen, and neither is good. Either Congress can deny raising the debt ceiling, which will cause America to default on it’s loans and cause a global crisis which would devestate trade and employment, or they can raise the debt ceiling, which would allow for the printing presses to ramp up even more and devalue the dollar further in order for the government to pay their debt with monopoly money. The latter would also devalue American’s savings, checking, and retirement accounts, not to mention make your pay check buy you less. Quite the catch 22 here, but no, it wasn’t touched on tonight, not important enough for the “state of the union” I guess..

Another thing that wasn’t touched on, was the fact that medicare and medicaid are broke. The President did say that he was open to all suggestions on ways to make the current health care bill more affordable, but God forbid him from telling the American people that the government funds for medicare and medicaid don’t have any money, and are simply a ponzi scheme in which the current costs are paid by new taxes to cover the fact that there is no money in the funds. Nope, he just said that he is going to continue to push “free” health care for everyone. After all, what does it matter that the current government funded health programs don’t have any more money, they can just print more anyways. Nobody will notice that is just causes our money to be worth less and less, and the cost of living to go up and up..

In relation to finance, the President said everything that everyone wants to hear. The problem is however, he speaks in fairy tales. He didn’t mention that the dollar is falling like never before, that paychecks are thinner than ever, that unemployment is still crippling the production of our nation, that China is crushing us with production and exports, that the world is no longer buying our biggest product(debt), that China is trying to make their currency(the Yuan) the reserve currency of the World. No…none of that was mentioned.

All Mr. Obama did was pushed for new government spending on infrastructure projects, education, and scientific research while calling for deep cuts in other parts of the nation’s budget.

The President spoke about how we need to “level the playing field,” by not extending the tax breaks to the top 2% of the population in terms of income.(The group that is responsible for creating the most jobs in our country by the way, and are responsibly for majority of donations and charities that exist in our nation..) He said that it doesn’t make any sense that people who have accountants and attorneys can get away with not paying taxes, while the rest of the people get stuck with the bill. This translates in my book to, “bye bye middle class.” The President was put in office by the richest men in the world, he surely is not going to make them pay more taxes, hell, they benefit from taxes, especially the biggest tax of all(inflation). The way to level the playing field is not by stopping tax cuts to the top 2% in income, the way to level the playing field would be to extend tax cuts to the bottom 98% in terms of income. Make it so that the middle and poor class pay the same amount of taxes as the true rich.(Who account for less than 1/10 of 1% of the world’s population..)

I agree completely with President Obama on the fact that we need more good teachers in our country. I agree with him that our teachers are our “future makers” of our nation as well. However, I don’t understand that he can acknowledge how important teachers and education are, but leave out anything to do with financial literacy not being taught in our schools. Maybe if we taught about the difference between as asset and a liability in the classroom, or cash flow and capital gains, then we would not have these MASSIVE spending deficits in our country…just a thought.. My financial mentor Robert Kiyosaki put it this way, “It’s my belief that the countries that prosper in the future will be those that properly educate their people about money and investing. If the US desires to be competitive, it must teach its children how to be financially intelligent and to stop living by the old rules of money.”

The President mentioned that we will be bringing home our troops from Iraq this year. Neat, didn’t he say he would be bringing them home as soon as he took office?? Let’s face it, the troops are not over there to preserve democracy or freedom for Iraqi’s, they are there because that land is rich in oil.

What I got out of the speech the most was this, “Government, both sides, Democrats and Republicans, we need to work together to continue to take care of the country. The people need us, we have the answers to everything, but only if we work together.”

I’m sorry, I’m just not much for big government. It seems to me that any government that tries to do to much, doesn’t do anything enough correctly.

What I would have liked to see addressed(which I’m not surprised at all that they weren’t) are the following issues: unemployment, unfunded liabilities(such as medicare, medicaid, and social security), inflation, and financial education.

I will continue to stay educated financially, so that regardless of what the government does with the tax laws or to our currency, I am sheltered and secure financially, as is my family. I urge others to do the same. What I beg of you however, is that you do not simply listen to the President, or anyone else for that matter, but that you also WATCH their actions. If you want to stay REAL, follow the government’s ACTIONS, not their WORDS.

PS: We all saw you in the audience with that stick up your ass Nancy Pelosi, and I personally wanted to backhand you more than ever.