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Currency Crisis! So What Happens If The Dollar And The Euro Both Collapse?

Some analysts are warning that the U.S. dollar is in danger of collapse because of the exploding U.S. government debt, the horrific U.S. trade deficit and the new round of quantitative easing recently announced by the Federal Reserve.  Other analysts are warning the the euro is in danger of collapse because of the very serious sovereign debt crisis that is affecting nations such as Greece, Portugal, Ireland, Italy, Belgium and Spain.  So what happens if the dollar and the euro both collapse?  Well, it would certainly throw the current world financial order into a state of chaos, but what would emerge from the ashes?  Would the nations of the world go back to using dozens of different national currencies or would we see a truly global currency emerge for the very first time?

Up until recently, the idea of a world currency was absolutely unthinkable for most people.  In fact, the notion that all of the major nations around the globe would agree to a single currency still seems far-fetched to most analysts.  However, if enough "chaos" is produced by a concurrent collapse of the U.S. dollar and the euro, would that be enough to get the major powers around the world to agree to a new financial world order?

Let's hope not, but it is getting hard to deny that we are heading for a major currency crisis, and if the U.S. dollar and/or the euro collapse, the world will certainly never be the same afterwards.

In case you missed it, China and Russia made a very big announcement the other day.

They told the world that instead of using the U.S. dollar to trade with each other, they will now be using their own national currencies.

Most Americans don't realize it, but that is a very, very big deal.

The fact that the U.S. dollar has been the primary reserve currency of the world for decades has given the United States a tremendous amount of economic power.

But now nations are beginning to lose confidence in the U.S. dollar and they are slowly starting to move away from it.

When the Federal Reserve announced a new round of quantitative easing in early November, it created a huge backlash from other nations.  For decades, many other countries have been heavily investing in dollar-denominated assets, and now they are quite upset that those assets are going to be devalued.

Chinese Finance Vice Minister Zhu Guangyao used very strong language in denouncing the Fed's new quantitative easing scheme earlier this month....

"As a major reserve currency issuer, for the United States to launch a second round of quantitative easing at this time, we feel that it did not recognize its responsibility to stabilize global markets and did not think about the impact of excessive liquidity on emerging markets."

German Finance Minister Wolfgang Schäuble was even more blunt.  He has called current Federal Reserve policy "clueless", and he says that he is absolutely disgusted with the Federal Reserve at this point....

"They have already pumped an endless amount of money into the economy via taking on extremely high public debt and through a Fed policy that has already pumped a lot of money into the economy. The results are horrendous."

So where is all of this going?

If the Federal Reserve keeps flooding the system with new dollars, the rest of the world could eventually totally reject the U.S. dollar and U.S. Treasuries.

If that day ever arrives, the results would be beyond catastrophic as the following short video from the National Inflation Association demonstrates....

But it is not just the U.S. dollar that is in trouble.

The euro is in danger as well.

Just consider the financial problems that some major European nations are experiencing right now....

*Standard & Poor's has slashed Ireland's credit rating two notches to "A", and is warning that there could be further downgrades.  The Irish budget deficit is projected to reach 32 percent of national output this year.  Ireland's finances are being called "just one big pyramid scheme", and they recently accepted a huge European bailout.  Unfortunately for Ireland, this bailout comes with strings.  The Irish government is now being forced to implement an austerity program that is being referred to as "draconian".

*Analysts are projecting that Portugal is going to need a bailout of at least 50 billion euros.  The government of Portugal has implemented some harsh austerity measures in an attempt to get the red ink under control, and the people are not pleased.  On Wednesday, a massive national strike shut down travel and basic services across the country.

*Things are so bleak in Portugal right now that Foreign Affairs Minister Luis Amado recently stated that his nation "faces a scenario of exit from the euro zone" if a solution is not found for this financial crisis.

*Greece was the first nation to need a European bailout, and now there are rumors that they may need even more assistance.  The statistics agency for the EU, Eurostat, recently revealed that Greece's budget deficit for 2009 was actually 15.4% of GDP rather than 13.6% of GDP as originally thought.  The Greek national debt is now well over 120 percent of GDP.  The financial problems in Greece never seem to stop.

*Belgium's debt has reached 100 percent of annual national income, and the cost of insuring that country's debt has now hit record levels.

*Even Spain is in trouble.  Rates on Spanish 10-year government bonds have risen to frightening heights in recent days, and the official unemployment rate in Spain is hovering around 20 percent.

*In a recent article entitled "A Spanish Bailout Would Test Europe’s Strained Finances", the New York Times quoted Jordi Galí, the director of the Center for Research in International Economics at Barcelona’s Pompeu Fabra University as saying that rumors that Spain is in financial trouble could end up making it a self-fulfilling prophecy....

"If investors expect Spain to have trouble refinancing its debt, now or somewhere down the road, then Spain will have trouble,” he added. “This is only aggravated by the fact that the reluctance of investors to purchase the country’s public debt leads to an increase in the interest rate it has to pay and thus in the budget deficit and the amount of debt it has to issue."

So could this sovereign debt crisis actually cause the euro to collapse?

Well, it depends who you ask.

European Financial Stability Fund chief Klaus Regling says that there is "zero" chance that the euro will collapse....

"There is zero danger. It's inconceivable that the euro would collapse."

Other European leaders are not so sure about that.

EU President Herman Van Rompuy recently warned that if some of the weaker countries in Europe are forced to abandon the euro it will likely cause a total meltdown of the European Union....

"We’re in a survival crisis. We all have to work together in order to survive with the euro zone, because if we don’t survive with the euro zone we will not survive with the European Union."

German Chancellor Angela Merkel is also warning that a failure of the euro could bring down the entire European Union....

"If the euro fails, then Europe fails."

But is this likely to happen any time soon?

No, probably not, but in 2010 top European officials are actually acknowledging the possibility, and that shows just how serious things have gotten.

So if the U.S. dollar and the euro do collapse, what would happen?

Well, already many world leaders are openly speaking of the need for a true global currency.

After all, they argue, there won't be any "currency wars" if we are all using the same currency.

In fact, the Institute of International Finance, an organization that represents 420 of the biggest banks and financial institutions on the globe, recently declared that the time has come to adopt a one world currency.

In fact, as I wrote in an article entitled "Bancor: The Name Of The Global Currency That A Shocking IMF Report Is Proposing", a recent IMF policy paper actually proposed a name for the "global currency" that they believe could be coming....

A paper entitled "Reserve Accumulation and International Monetary Stability" by the Strategy, Policy and Review Department of the IMF recommends that the world adopt a global currency called the "Bancor" and that a global central bank be established to administer that currency. The report is dated April 13, 2010 and a full copy can be read here. Unfortunately this is not hype and it is not a rumor. This is a very serious proposal in an official document from one of the mega-powerful institutions that is actually running the world economy. Anyone who follows the IMF knows that what the IMF wants, the IMF usually gets. So could a global currency known as the "Bancor" be on the horizon? That is now a legitimate question.

So will any of this ever come to fruition?

Well, it would likely take one whale of a crisis to get the countries of the world to agree to such a thing.

However, we do live at a time when the world financial system seems to be perpetually on the edge of chaos.  If at some point the U.S. dollar and the euro totally fall apart perhaps we will see a "new order" arise out of all of that chaos.

But let's hope not.  Once we give any organization the power to issue a global currency the odds of us ever getting our economic sovereignty back will be greatly reduced.  The internationalists are going to use any crisis as an opportunity to argue for greater centralization of the world financial system, and it will be very important for the American people not to fall for those arguments.

Hopefully the U.S. dollar and the euro can remain stable currencies for at least a little while longer.  Because once they collapse things will never, ever be the same again.

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  • John Lang

    I believe all those free floating currencies will again be local currencies. The Dollar and the EURO will collapse. The WTO and globalization will cease to exist. Trade protectionism by means of tariffs will emerge and will be widely used. There will be no one one reserve currency. Instead, countries will trade by means of swaps exactly like what China and Russia are doing now. Internationally used paper currencies will be replaced by electronic debit cards.

  • whoisbiggles

    What is the point of this article? What message do you want to get across?

    The US has abused its global reserve currency position, the rest of the world is starting to get fed up, and looking at other solutions?

    At what point is this a surprise to anyone with half a brain?

    Oops sorry I forgot America is exceptional and the rest of the world should drop their pants bend over and take it up the date!

    • S. Quade

      Pithy and correct.

  • http://brunolem.wordpress.com Brunolem

    You forget to mention faith! Currencies, a.k.a. fiat money, are based on faith.
    The faith in the dollar is not that different from the faith in, say, the Catholic Church. The latter has been in decline for decades, eaten by unending scandals. Yet, no one says that the Catholic Church is going to collapse.

    The same is true for the dollar. People complain, yet faith remains strong. Just watch all these traders, investors and other believers, rushing to seek refuge in the dollar, as soon as anything goes wrong, anywhere in the world.

    Thus, there is little chance that the dollar will collapse.

    In fact, the dollar is following the US downhill, not the other way around.

    And the US is not collapsing, it is declining. Decline is a much slower process than collapse. It took 4 centuries to Rome to reach bottom; it will take much less to the US, but not a few weeks or months.

    The euro is a very different story. Everything seems possible, but in the end it is more a political issue, than a financial one.

    As long as member countries, their leaders and their population, are willing to remain in the eurozone, whatever the cost, the euro is safe. Trichet will play Bernanke’s game, print as much as necessary to plug the holes.

    But, if the PIIGS’ population starts to rebel and things get out of control, a few governments may be forced to throw the towel and then, all hell will break loose.

    For the time being, the EU is having a field day, because the eurozone populace, as ignorant as the US populace, doesn’t understand that it is bled dry, in order to save bankers and their sumptuous lifestyle.

    Click on my name to visit my blog.

    • S. Quade

      The Catholic church grew with the collapse of Rome, which happened over many centuries, dolt. The USA has only existed since 1776. The Catholic church will go on after nations as they exist now are no more. I’m NOT catholic and even I know that. As long as humanity exists the church will exist. Nations come and go. Read history.

  • http://thecivillibertarian.blogspot.com/ Frankenstein Government

    I used to think global banking conspiracies were BS. I don’t anymore. If the international banking elite can convince the world that one currency will streamline all of these problems…we are toast.

    That’s because bankers control the quantity of currency. Once they have a one world monopoly on currency, it’s game over. They manufactured this latest crisis, on purpose, and I truly believe they will propose this as the solution.

    Then we will be owned.

    I am still trying to sort out the missile launch. That’s the one you will recall…when all of our air defense systems and satellites apparently quit in unison and our government when eerily quiet.

    http://thecivillibertarian.blogspot.com/2010/11/mystery-missile.html

    • S. Quade

      http://www.theadvocates.org/quiz

      Read the articles below at: http://www.globalresearch.ca/index.php?context=va&aid=24110

      Speculators, Cartels and Myths of Scarcity: How War Pushes up the Price of Oil
      Afghan History Suppressed: Islamists, Heroin and the CIA
      Afghan History: Al Qaeda, The Taliban and the Texas Oil Giants
      Afghan History: The Central Asian Grand Chessboard
      The Four Horsemen Behind America’s Oil Wars
      Osama bin Laden and the 911 Illusion
      Osama Bin Laden and The 911 Illusion: The 9/11 Short-Selling Financial Scam
      Part II
      Bin Laden & The 911 Illusion: Secret Societies & Masterminds
      Consolidating US Money Power: The Four Horsemen of Global Banking
      The Federal Reserve Cartel: The Eight Families

  • JLouise

    Can we PLEASE stop using words like “hopefully not”. Let’s just say it: when the dollar and euro collapse, things as you suggested will never be the same, so…..what will the new senario look like? Will China/Russia be the financial/economic power? How will the U.S. make it’s money and what jobs will the American people have? Will we turn into a Venezuela-style country, or is that too optimistic? What will be our new lifestyle, new culture, new economy?

    • S. Quade

      Rational comment. Probably too intelligent for sheeple to grasp.

  • Richard W

    A global currency would also require global taxation, would it not? And global taxation policy would certainly be set by someone or some body that we did not elect and I dare say, would not approve.

    Not going to happen. Not as long as I draw breath.

  • http://www.planorperish.com/ Gutter Economist

    Ignore the talking heads for a minute and look at the facts.

    (1) The Euro and the US dollar can only fall if other currencies rise. Who has better monopoly money? China could back their currency with gold but would the world trust a communist currency manipulator?

    (2) All monopoly money is falling relative to gold but that does not mean that the Euro or US dollar is becoming less useful for international trade.

    (3) Russia only has 2 percent of the world’s GDP so their international trade is not a big deal.

    (4) In spite of quantitative easing by the Federal Reserve, the US dollar index is actually rising (not collapsing).

    (5) Don’t waste your time listening to the National Inflation Association. This organization specializes in tabloid journalism.

    (6) A collapse of the Euro / European Union would be a step backwards for the Church of NWO (new world order) so this organization will do whatever they can to keep things intact. Martial law might be implemented to maintain austerity programs.

    (7) The IMF is a different issue. We need to replace many of our politicians before they voluntarily give away our remaining sovereignty.

    • S. Quade

      Dollar peg going away? Two articles.

      India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees
      Submitted by Tyler Durden on 01/21/2012 – 00:07ChinaCrudeEuropean UnionIndiaIranJapanOPECReserve CurrencyReutersTurkeyVolatility
      Two weeks ago we wrote a post that should have made it all too clear that while the US and Europe continue to pretend that all is well, and they are, somehow, solvent, Asia has been smelling the coffee. To wit: “For anyone wondering how the abandonment of the dollar reserve status would look like we have a Hollow Men reference: not with a bang, but a whimper… Or in this case a whole series of bilateral agreements that quietly seeks to remove the US currency as an intermediate. Such as these: “World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade”, “China, Russia Drop Dollar In Bilateral Trade”, “China And Iran To Bypass Dollar, Plan Oil Barter System”, “India and Japan sign new $15bn currency swap agreement”, and now this: “Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says.”” Today we add the latest country to join the Asian dollar exclusion zone: “India and Iran have agreed to settle some of their $12 billion annual oil trade in rupees, a government source said on Friday, resorting to the restricted currency after more than a year of payment problems in the face of fresh, tougher U.S. sanctions.” To summarize: Japan, China, Russia, India and Iran: the countries which together account for the bulk of the world’s productivity and combined are among the biggest explorers and producers of energy. And now they all have partial bilateral arrangements, and all of which will very likely expand their bilateral arrangements to multilateral, courtesy of Obama’s foreign relations stance which by pushing the countries into a corner has forced them to find alternative, USD-exclusive, arrangements. But yes, aside from all of the above, the dollar still is the reserve currency… if only in which to make calculations of how many imaginary money one pays in exchange for imaginary ‘developed world’ collateral.

      China And Iran To Bypass Dollar, Plan Oil Barter System, And A Deeper Dive Into The Iranian Oil Bourse
      By Tyler Durden
      Created 07/24/2011 – 13:57
      One of the more notable events in the past week was the previously discussed reopening [10]of the Iranian Oil Bourse, an attempt by Iran to launch a venue that bypasses US sanctions against Iran which has prevented payment in the world’s reserve currency for Iranian goods. “Big deal”, some will say, this is not the first time Iran has attempt to upstage the Great Satan. Well, true, although as OilPrice said last week, “what it would take for Iran’s new exchange to survive and flourish are some heavy-duty customers that Washington would be wary of picking a fight with, and Tehran already has one – China… China, the world’s largest buyer of Iranian crude oil, has renewed its annual import pacts for 2011. In 2010 Iran supplied about 12 percent of China’s total crude imports. According to the latest report of the China Customs Organization, Iran’s total oil exports to China stood at 8.549 million tons between January and April 2011, up 32 percent compared with the same period last year. Iran is currently China’s third largest supplier of crude oil, providing China with nearly one million barrels per day.” Still, the perceived provocation to Uncle Sam should China go ahead and slap America in the face by accepting the existence of the Kish exchange, would echo around the world. Which is why many don’t think much if anything will happen. Until today, that is: according to the FT, China has decided to commence an barter system in which Iranian oil is exchanged directly for Chinese exports. The net result: not only a slap for the US Dollar, but implicitly for all fiat intermediaries, as Iran and China are about to prove that when it comes to exchanging hard resources for critical Chinese goods and services, the world’s so called reserve currency is completely irrelevant. The implications of this are momentous, especially for US debt, whose indomitability is only predicated upon the continued acceptance of the currency it backs as a global reserve. If China is now openly admitting to the world that it does not need US monetary intermediation, and by implication, the “debt” backing said intermediation, what then? And who will follow China next?
      From the FT:
      Tehran and Beijing are in talks about using a barter system to exchange Iranian oil for Chinese goods and services, as US financial sanctions have blocked China from paying at least $20bn for oil imports.
      The US sanctions against Iran, which make it extremely difficult to conduct dollar-denominated business, mean that China could owe the oil-rich nation as much as $30bn, according to people familiar with the problem.
      They said the unpaid oil bills had built up over the past two years and the governments, which are in early-stage talks, were looking at how to “offset” the debt.
      Some Iranian officials are growing increasingly angry about the inability of the country’s largest oil customers to pay cash, a problem that has contributed to a shortage of hard currency and has hindered the central bank from defending the Iranian rial, which has been sharply devalued over the past month.
      China and India together buy about one-third of Iran’s oil, the country’s economic lifeblood. China’s oil imports from Iran have risen 49 per cent this year, according to Reuters.
      While Iran can do without India, it needs China:
      Iran last week threatened to cut off oil exports to India, which owes $5bn for oil but has not been able to move the money out of an escrow account to Tehran.
      Unlike India, which exports almost nothing to Iran, China is dominant in Iranian business and could use a barter system to balance trade between the two countries. Beijing is involved in everything from building tunnels to exporting toys and has been expanding into Iran’s oil sector, where European companies such as Shell and Total have been deterred by the difficulties of operating without contravening sanctions.
      China and Iran’s bilateral trade totaled $29.3bn last year, up almost 40 per cent from 2009. The two countries this month signed several infrastructure and trade collaboration agreements that would see Chinese companies invest in big infrastructure projects in Iran, while Iran would export large quantities of chrome ore to China, according to local reports.
      “Both China and India are happy to keep Iran’s money in their banks and try to get Iran involved in barter deals to sell their junk, or give yuan and rupees instead of hard currencies,” said one Iranian former official, on condition of anonymity. Iran had not yet accepted the alternatives, he added.
      While Iran would have very little use for a non-convertible Yuan (for now), direct barter is something that will be far more useful to the resource-rich country. Yet, as Isaac Newton once cautioned, “in order to measure, you must define your unit.” What will China and Iran agree on as the unit of exchange, if not monetary intermediate, especially in those cases when there is no preset barter agreement?
      If said neutral monetary “hard asset” ends up being a precious metal, look out US Dollar.
      And for those curious to learn some more about the Iranian Oil Bourse, here is Grant Williams with his latest “Things that make you go hmmm.”
      To view those things, click link below.
      http://www.scribd.com/doc/60798088/Hmmm-Jul-23-2011

  • http://lnx-bsp.net/ Tel

    Most of the articles on this site have some sense to them, but this is not a sensible article. World currencies are only fiat currencies anyhow, just printed paper. None of them have any intrinsic value.

    There are only three things you can do with a US dollar: if you are a US citizen then you can pay your tax with it (i.e. protection money) thus you are somewhat safer from government brutality for some period of time; if you are not a US citizen then you can buy some export that the US sells (I bought a Webber BBQ recently); finally the third thing you can do is exchange the US dollar for some other fiat currency at some current exchange rate.

    If the US dollar and the Euro go down, then they go down only because some other currency is going up. China and Japan are thus unable to maintain the cheap exports into Europe and the USA. Trade deficit eventually comes to balance and life goes on.

    What will hurt is if the US dollar devalues rapidly and then you get a shock. That shock will bounce around for a time causing confusion and instability until it settles back into position. We can only trust that the powers that be don’t want a shock to the system either (nor do China and Japan for that matter) so they will do what they can to regulate the situation. Admittedly, they’re a sorry lot to have to put your future into their hands but choices are limited.

    Of course, the price of real goods (gold, silver, food, fuel, etc) can go up worldwide (relative to all currencies) and then we have good old inflation. So far this has been happening only at a gradual rate, with Quantitative Easing (i.e. money printing) being balanced against debt deflation (i.e. loan writeoffs, falling share prices and bankruptcies). If these two forces stay in balance then inflation will be gradual, if they fall out of balance then prices will be wild for a time and another shock will ensue.

    • Liberty is Utopia

      You make more sense than 500 other bloggers I’ve read. Keep talking!

    • S. Quade

      National currencies are only an illusion. Everywhere the banking cartel is in control, the financial systems already are merged. The cartel has bankrupted most third world nations and now has done with the first world countries as well. Congress is the tool, literally.

      http://www.canadafreepress.com/index.php/article/26474
      Monopoly Money and the International Banking Cartel
      Damon Vrabel Thursday, August 12, 2010

      Some people have asked what I mean by “international banking cartel” and if it really exists. indeed it is very real and it has profound power over our lives. here are the details…

      The Federal Reserve has been at the top of the news for a long time and it’s getting a lot of the attention now as it appears the next down cycle in the depression may be upon us. So what’s the real reason the world listens so intently to an Ivy League bureaucrat like Bernanke? Of course, it has nothing to do with him. It’s who he is accountable to–the international banking cartel:

      US
      Bank of America Securities LLC
      Cantor Fitzgerald & Co.
      Citigroup Global Markets Inc.
      Goldman, Sachs & Co.
      Jefferies & Company, Inc.
      J. P. Morgan Securities Inc.
      Morgan Stanley & Co. Inc.

      Britain
      Barclays Capital Inc.
      HSBC Securities (USA) Inc.

      Switzerland
      Credit Suisse Securities (USA) LLC
      UBS Securities LLC.

      Japan
      Daiwa Capital Markets America Inc.
      Mizuho Securities USA Inc.
      Nomura Securities International, Inc.

      Germany
      Deutsche Bank Securities Inc.

      France
      BNP Paribas Securities Corp.

      Canada
      RBC Capital Markets Corp.

      Scotland
      RBS Securities Inc.

      These institutions are the current primary dealers of the Federal Reserve System. They have power over the entire economy, everything in “the market,” very much a non-free market. They sit at the top of the world’s monetary system, currently the Fed’s debt-dollar pyramid, with a governmental license to what has been the most secure capital in the world–US Treasury debt–for a monopoly price that nobody else can get. And when it comes to global finance, the difference between the strongest banks vs. dying banks is just a few basis points in price (cost of capital).

      These banks get first dibs on buying the servitude of the US population through the Fed/Treasury auction process. They distribute some of it to subordinate capital for a guaranteed premium, and they park a large amount of it on their own balance sheets as assets upon which they can speculate, trade, and fractionalize to create the rest of the money in the economy and put other countries, companies, and people in even more debt. So these institutions hold a monopoly position that even leviathan Standard Oil never dreamed of: a government-enforced usury license that generates trillions for their premium capital holders and senior employees and allows them to act as imperial armies sucking in more territory around the world as neoliberalism breaks down sovereignty.

      This is why the country list above doesn’t mean what some may think. The institutions aren’t national. The list only indicates that the banking establishment has a permanent parasitic stake in those countries to churn their populations under the Fed’s debt system. All of the listed institutions are global in nature. Together with hedge funds and their other buy-side buddies, they have power over nations. Like any corporate institution, banks drive earnings per share (EPS) by expanding and leveraging their balance sheets, which for banks means putting everything else in more debt. So these cartel banks work to expand their territorial control beyond their national borders to put other populations in debt. This is a mathematical requirement of exponential growth enforced by the private capital system. The eventual end state of this dynamic is one integrated, global banking empire. It’s only a matter of time before their collective balance sheets (plus the large Chinese banks now that the cartel is colluding with them) control the rest of the world if people don’t awaken and choose to put a stop to it.

      Will they succeed? The Fed system is in transition. The crash of 2008 was the first phase of global capital holders shifting their private capital out of the system so the Fed was forced to add public capital, i.e. your debt, into the system. More of this is likely coming. But does this mean the international banks behind the Fed are dying? No. They’ve simply transferred their bad assets to the public through the Fed and prepared to ramp up operations in Asia, which will be a primary churn center for the 21st century global banking system. Capital assets have been transferred, production assets have been transferred, and the capital holders can transfer much more capital in a short period of time if they so choose.

      All the specifics of this coming transition may not be clear, but it is coming unless the global population says no. The banks have set up the ultimate voluntary test. If we continue to say yes by playing along with the banks and the multinational corporations they control, then they will have proven that a global empire ruled by an integrated banking system is preferred and possibly superior to independent countries. But they appear to be failing their own test. Ivy League neoliberalism has been exposed for what it is. The people are now indeed saying no.

  • William

    Adopting a world currency is a large step closer to a single world government. This has been a major goal of the authors of the Protocols for two hundred years. This government will be used to rule the world for their benefit, not yours. You will be a slave. You do KNOW who runs the Federal Reserve, don’t you?? Andrew Jackson ran the central bank OUT of the USA in the early part of the 1800s. It was defeated until Woodrow Wilson was blackmailed into signing the legislation creating the Federal Reserve in 1913. In about a hundred years, this bankiing cartel behind the FED is nearing its goal.

    • S. Quade

      The banking cartel IS the world government. Sheeple haven’t yet noticed. Federal Reserve (the cartel) took over in 1913, so world domination by the cartel is not new. That which is familiar is “us”, not “them”. But “they” have been in charge for a very long time.

  • http://www.starvingthemonkeys.com/ John and Dagny Galt

    Folks around the globe need to read Tom Baugh’s book Starving The Monkeys and THEN comment if they still don’t have a clue.

  • Owen

    The predicted cashless world economy is almost here…

    • S. Quade

      If you don’t like the idea, refuse to participate.

      Another shibbolith: voting
      It’s a dog and pony show for sheep(le)

      If you don’t like being ruled by the banking and oil cartel (worse is coming, not better under their domination) remember, “fight organized crime — vote for no one”.

  • Philip M.

    The German Finance Minister Wolfgang Schäuble was even more blunt. He has called current Federal Reserve policy “clueless”, and he says that he is absolutely disgusted with the Federal Reserve at this point….

    http://www.hedgethebets.com/latest/2010/11/how-rigid-german-monetary-and-economic-policy-threatens-the-stability-of-the-euro-zone-and-scares-investors/

    Of course the German Finance Minister Wolfgang Schäuble is totally upset about a low Dollar, because it means the Euro is too high and exports are way too expensive! Especially because the Renminbi is pegged to the Dollar! And Germany lives and dies with exports. The Fed isn’t clueless but smart.

    The Paradox of thrift shows that austerity will Europe’s economy will go to hell in a hand basket and lead to a lost decade like in Japan:

    Japan’s Lost Decade: Origins, Consequences and Prospects for Recovery
    http://amzn.to/fy5369

    The US will recover in 2 – 5, still quite long, but it won’t be a decade.

  • Gary2

    Hey guess what-I do not have any dollars (or euros) …

  • http://thecivillibertarian.blogspot.com/ Frankenstein Government

    Richard;

    I don’t think so.

    We didn’t elect the FED and quite clearly, they do whatever they want. Or do you give ours a pass?

    What makes you think the US could not have their own taxation policy? In fact, to get this done- international bankers would love to have countries pretend they are sovereign.

    Keep drawing breath and watch.

  • dodiligence

    The “Bancor” was purposed years ago. It was just a type of system that was needed. The “WOCU” (world currency unit)is the realization of that system. It was created 11 years ago and was in testing stages for stability for 10 years. It was created by the IMF. Is has been traded since January 2010. It is based on a basket of 20 currencies. That is why the G8 was expanded in September of 2009 to the G20. (G20 World Economic Forum)
    Have you not seen Dmitry Medvedev holding the coin at the G20 meeting touting it as the New World Currency. All of the members of the G20 received one. They all know full well what is going to happen. The demolition of national currencies was purposed back in the 70s through “RIO” (Reshaping the International Order)google it. Please Wake Up people. Do your research. Life as we know it will soon change. The IMF will soon put the U.S. under receivership with very strict austerity measures and finish dismanteling our sovereignty. P.S. Mr. Obama cares not about reelection nor the U.S. he has bigger aspirations.

  • Etie

    One world currency ? That is exactly what the New World Order (read the Bilderberg Group) want’s to happen, together with one world Army and one world Government (alias the U.N. = already installed). Next is to start a worldwide depopulationprogram to decrease the number to 2 Billion and chip everyone of them to gain complete control, and then we will become slaves to work for the Elite (no individula liberty anymore) no middeleclass anymore, just very rich and very poor people…………nice prospectives aren’t they.
    Remember that this crisis (economical and financial) is an organised scenario from several decades ago and whe are now on the edge of it…..to become true. Don’t believe me…understandable BUT if it become’s reality….please don’t start to surch for someone to blame…..just look in the mirror…..get it !!!! R.I.P.

  • El Pollo de Oro

    In the words of Gerald Celente, “our electronic currency isn’t even worth the paper that it’s not printed on.”

  • http://TheRaptureCult.com Scott

    The writter(s) of these articles catch a lot of flack from the viewers here. Much of this is like the Titanic with all the ensuing chaos that Is present in today’s economy. That said, I appreciate your web site as I’m sure many others do as well. It is written with truth, honesty and concern.

    To the people who produce this economic info hub who endeavor to promulgate public awareness – God speed.

    And thank you.

    From,

    TheRaptureCult.com

  • http://www.fxexchangerate.com/ George Melchers

    Hmmm… central banks print worthless money to loan to governments and charge exorbinent interest/fees. Governments can borrow unconditionally and unlimited in the beginning. All governments have to pay while on this money ride is the interests/fees on the worthless money. The coalition of central banks in the world ship and destribute wealth of nations as they desire, creating economic hardship or prosperity for each targeted nation. So they with greed and wealth driven politicians get rich, drain national wealth, and as global destroyers want a world currency to consolidate their power forever. Of course other parasites like the IMF (International Monetary Fund) of course support this. IMF’s source of revenue….the sovereign nations giving to it. The world banks source of revenue….sovereign nations giving to it. Who’s the biggest giver..the US. Close off borders, go back to gold/silver standard, restore US industrialization, eliminate or limit all regulatory agencies, and disavow the central bank ponzi debt. We had it right in the early 1900′s, then they brought back the Central bank.

  • Scott

    As the article & comments bring up,
    a faltering Euro and USD leave a large hole not easily filled.

    In theory, a world currency is appealing….well that is if corruption wasn’t rampant in finance and governments; but there is corruption, stupendous amounts.

    Even worse, there really do seem to be power hungry, New World Order types owning the big banks and manipulating governments. As evidence one need merely to observe that at EVERY junction of this crisis in the US and EU the big banks are protected from ever taking a loss. Governments seem willing to sacrifice their citizen just to keep the big banks from taking a haircut.

    The ONLY explanation for this is that both the EU and US governments are controlled by the big banks. My own opinion is that the ultimate owners of Europe’s and US largest banks are the same.

    These folks are a true danger to us all. Exposing them and defeating their policies should get everyone’s top priority.

  • Philip M.

    The Fed tries to ensure GROWTH and STABILITY, the ECB cares only about their INFLATION target. Hence the ECB goes ahead in good and mediocre times and keeps the interest rates ALWAYS TOO HIGH. The result is: it harms the EU economy and helps our economy. When the global economy is much weaker like now the ECB is always slower than the Fed and only shortly before a crash, they come to the rescue

    http://www.hedgethebets.com/latest/2010/11/how-rigid-german-monetary-and-economic-policy-threatens-the-stability-of-the-euro-zone-and-scares-investors/

    The reality is much more thrilling than what a Hollywood scriptwriter could dream up. The US Secretary of the Treasury, Timothy Geithner, will probably soon have another opportunity to tell his European counterparts not to sleep on the job (like in the ‘World is Not Enough’)

    http://amzn.to/ihAWxn

    In a nutshell: Speculators will have ample opportunity to shorten the Euro, again. It begets the question whether Europe intends to learn from past mistakes at all.

    http://amzn.to/g8G9zR

    And the answer is: Not if they can help it.

  • Michael R.

    All fiat currencies fail. The dollar and the euro will be no exception. When they do fail the monetary authorities may try a global currency but it will fail as well. If Europe can’t have a workable currecy how will the world have one? Gold is the only workable global currency. But it is not political. It is free market money and will find its own value in the marketplace. That’s why the powerseekers of the world hate it.

  • http://erectuswalksamongstus.com Max Hardwood

    Once our currency is tossed into the ‘basket’
    with the others, the purchasing power of the
    Dollar will be diluted by (75%)? Once the
    dollar is devalued, living in America will be
    no different than living in Mexico…..the
    currency will be virtually worthless, won’t buy
    anything, and we’ll all be living day-to-day
    hoping to sell a pair of used shoes on the
    street corner in order to eat that day.

  • MontgomeryScott

    Yes, Indeed…
    The Titanic, all right!

    The JP Morganesque banksters have initiated QE2, and then the English are trying to bail out the Irish…and WHERE is the extra cash flowing into the ‘world’ economy from the FED going to end up? (GEE, is it going to be the multinational banking system?)
    They are in the Grand Salon of the Titanic, deciding which chairs will be the most comfortable to be in, as the ship sinks lower in the water…and the iceberg known as the BIS/IMF twins are calmly floating nearby…

    This financial aspect is only one of many…
    How about politics? What did you think of Putin going to Germany, and telling Merkel that he wanted to support the Euro, and pledging to try to create a ‘new’ greater European economic bloc, with enhanced ‘trade’ with Russia? Say, aren’t Russia and China new-found friends?
    I WONDER why the DHS/TSA has announced that they want to streamline the travel ‘process’ by introducing those IRIS SCAN machines? (beats the heck out of naked body scanners, DOESN’T IT?)

    I think I see a pattern forming…

  • trailblazer

    Whats collapsing? Investors losing faith? for that matter Grman Mark has come back from lowest value after unification so has british pound. One time gold was considered to be dead investments by Central Banks and sold off. Evrytime economists say its different but nothing really changes. excess liquidity will have excess volatility but writing off any currency is farfetched. When 12 members of EURO area find it to hot to handle single montory policy through single currency how one has idea of single currency for whole world.

  • lostinmissouri

    The entire history of fiat currencies all end the same way….default and collapse of that currency. The dollar and euro will not be any different.

    If the euro collapses, then each nation of the EU can simply go back to their national currency. I am not saying it will be an easy go back, but that is what will happen. Germany may do it anyway.

    When the dollar collapses, the U.S.A. will print a “NEW” dollar, to be exchanged for the old dollars, at some predetermined exchange rate. Again, not an unpainful event.

    It is not the end of the world or country. Many nations have gone through this….most recently Zimbabwe, USSR, Argentina….to name a few.

    I read that if USA changed the dollar to red instead of green and gave a limited time to exchange green for red…..many of the worlds green dollars, would never be changed and simply expire……a beautiful way to default and claim it isn’t our fault.

  • Mike Tanco

    I have some great ideas. Number one: Stop all foreign aid to countries that refuse to form their own Democracy and work trade agreements with the United States. Number two: Refuse financial assistance to anyone that is not a citizen of this country. Those on welfare have two years to become skilled in something that can contribute to our work force. Number three: Instead of giving money to companies to bail them out, give every citizen over 50 a million dollars and allow them to retire. This would open up jobs and stimulate our economy. Mike Tanco

  • MontgomeryScott

    Yes, Indeed…
    The Titanic, all right!

    The JP Morganesque banksters have initiated QE2, and then the English are trying to bail out the Irish…and WHERE is the extra cash flowing into the ‘world’ economy from the FED going to end up? (GEE, is it going to be the multinational banking system?)
    They are in the Grand Salon of the Titanic, deciding which chairs will be the most comfortable to be in, as the ship sinks lower in the water…and the iceberg known as the BIS/IMF twins are calmly floating nearby…

    This financial aspect is only one of many…
    How about politics? What did you think of Putin going to Germany, and telling Merkel that he wanted to support the Euro, and pledging to try to create a ‘new’ greater European economic bloc, with enhanced ‘trade’ with Russia? Say, aren’t Russia and China new-found friends?
    I WONDER why the DHS/TSA has announced that they want to streamline the travel ‘process’ by introducing those IRIS SCAN machines? (beats the heck out of naked body scanners, DOESN’T IT?)

    I think I see a pattern forming…

  • Chris

    I have consistently predicted,financial,property collapses since the eighties.Unfortunately experience has shown me that a telling proof is found when expressing my views to people involved in the industry wether they be estate agents,stock brokers,or financial advisors.I dont know any Politicians though i suspect the reaction would be the same.They always seem to not have physicaly registered what I have said.and If I press them on the matter,eventually their reasoning circles around the point of what I am suggesting “cannot happen”.30 years later and now we are familiar with the phrase “to big to fail”.
    for the last ten years I have been observing the approaching Tsunami of the end of money.you know ,it doesent have to signify the end of civilization ,but could instead become the chaos from which a new truly global civilization could spread.unfortunately the chances of this happening seem impossible to
    anyone who has been brainwashed and coherced to accept what passes for the wisdom and intelligence of our leaders.
    we are all in this together as inhabitants of possibly the only planet ever that supports such a magnificent cornocopia of life.
    Time to consider perhaps that a new golden age for humanity is a possibility.are we in this for ourselves at the expense of a truly dark age for “the other”,or would we risk everything to bring noble purpose to our planet,and food shelter and protection to all
    please take a look here for an alternative.http://humanitytest.org/

  • zack

    If the dollar and euro both collapse suddenly our economic system will break down, wage and price controls will be imposed by politicians desperate to stay in power. There will shortages for food and other necessities as they trade on the black market for barter or for sound money – foreign currencies backed by tangible assets or small denominations of precious metals. From that point, it’s anyone’s guess whether or not we’ll end up with a totalitarian Zimbabwe-style failed state or whether liberty will prevail.

    We help Americans find jobs and prosperity in Asia. Visit http://www.pathtoasia.com/jobs/ for details.

  • tyler

    The way the currency market is rigged if the euro goes down the dollar goes up. I might be too simple minded on this issue but I don’t see how it’s possible for both currencies to crash at the same time. eur/usd

  • http://www.unleavenedbreadministries.org Rob

    “They” are attacking the individual piigs through their bonds until a full euro crises occurs bringing the euro close to parity with the US dollar then attack US bonds and treasuries so both begin to collapse in unison then introduce bancor or equivilent world currency as the tribulation begins. Folks there is a reason the bible never seems to fade away. It is HIS-STORY(history)and we are living out the last book and its chapters.

  • jesse

    Why do we still follow a governmental system that was made “for the people” during an age of time that the only means of communication was a man with a bag on horseback? The time has come for the people to represent the people. We can save trillions without congress and senators, we can vote on our own laws on a daily basis, we can do without politics, we can become Americans once again.

    • Liberty is Utopia

      My friend, We all have neighbors who have strong opinions wholly based on misinformation they heard somewhere and will not spend 10 minutes looking for the facts. I’m not a fan of where government has evolved, by any means, but since “we” do not take the time to thoroughly vet candidates- what makes us think “we” would thoroughly vet hundreds of issues a year? This was a specific concern of the founders and the legitimate reason for a republic rather than straight democracy – they thought we should fear the gang mentality. I have no interest in government by the hyped.

    • disqus_qQewe9vFd8

      jesse: There are too many factions to do what you suggest. Our forefathers did try to keep us from being under a Dictator. I am afraid that H.R. 2847 will collapse the $ and if we put the Repubs in the Senate, the POS in theW.H. will declare Martial Law and become a dictoator.

  • carmen

    Watch “Confessions of an economic hitman” on you tube. US has malignant narssasitic mentality. They have used these tactics on third world countries to gain control and power. Not so much fun when these tactics are used on you. Karma

  • Tim

    People will still need to trade for things locally when there is a currency collapse. The urgency to trade will initially result in local bartering and the use of existing acceptable, commonly available, and recognizable coinage to trade with.
    Initially people will use their national coins, yes, I know they don’t contain much value any more. The point is they do contain SOME intrinsic value, compared to the paper currency issued. Some coins will have higher value based on content, for example US Nickels, and pre-1982 pennies. These and similar coins will naturally rise to their current true value with the sinking paper.
    Then there are national silver and gold coins, bars, and “melt” metals. These will become more valuable as paper notes drop until precious metal in all it’s forms easily could provide the basis for local commerce. I know many knowledgeable people have said that there isn’t enough gold or silver to cover all the debt… but that doesn’t take into account the rise in value of gold & silver in a collapse, along with the bankruptcies & outright repudiation of debt that will drop in value to meet the rising metals. Eventually TRUSTED local storage facilities will evolve to hold these ever increasing in value metals safely, and as a result they will of course issue receipts.
    These receipts or “Bills” will eventually become the most easily used, convenient local tender. In this matter most would prefer to actually see the bills, so a plastic card wouldn’t represent a trusted means of exchange right away. In time, confidence will rise to where I could see plastic could replace, but not eliminate altogether paper bills.
    So, as far as I can see, a collapse will result in the localization of banking, not the “world” currency predicted. That currency would need to provide the ability to trade value with local currency reliably.
    Reliability, or “Confidence” would have to be great before any world currency could take hold. I seriously would question any effort to legislate such confidence, as would I suspect most of you.

    • disqus_qQewe9vFd8

      The POS in the W.H. had the Dems pass H.R. 2847 while the Dems were still controlling the House of Reps. It is going to allow him to possibly declare Martial Law and possibly become the /Dictator.

  • Nichoas

    Correct, believe it or not all these unpleasant moments will have to happen and we can not do anything to change that day from coming….it will be like a thief in the night. Get mentaly and physicaly prepared because the time is near, we are already in a survival crisis and its getting worser much worser to an extend that is unthinkable for a big part of the whole global population arround the world, we all going to be effected worldwide.May the lord bless all of us to see and act wize when that day comes

  • Charles Mollison

    For those Australians reading this site, I offer the following.
    We can sit on our hands hoping for the best and watch the “powers that be” make our lives increasingly miserable – or we can do something to secure an even better standard of living than we now have.
    We have to extract Australia from the international financial debacle over which we have no control.
    How do we do that?
    First we have to “unfloat” the Australian dollar. That is, we have to fix the value of the Australian dollar against a basket of, say 20 other currencies.
    Second we have to remove from private banks the power to create money and restore that power to a recreated, Publicly owned, Central Bank. (Just like the original Commonwealth Bank we had in the 1920s.)
    Thirdly, we have to reform our system of government and our electoral system to ensure that future politicians and governments are accountable – that is, if they don’t perform as required we recall them and hold a fresh election.
    Fourthly, we could support the introduction of an international currency that would have no value in any nation’s internal affairs but would be the currency used in all international transactions. Penalties would apply to any nation that did not keep their international dealings in balance and this would be administered by a NOT FOR PROFIT BANK OF INTERNATIONAL SETTLEMENTS.

  • Liberty is Utopia

    So many good comments… Question tho: Germany (stable economy with deep memory of the consequences of fiat folly) is realizing that aligning itself contractually with irresponsible governments (unable/unwilling to avoid economic destruction) only means they are left holding the bag for the stupid decisions of others whom they can neither control nor influence. So why in the world would the US pledge it’s wealth generating capacity to secure the debts of those who will not limit their extravagance to the limits of their own means? Germany wants out- why would we want in?

  • http://theeconomiccollapsblog.com MACH1

    Most of everything I’ve read seems to me to be an individual opinion of the problems that the world is suffering with. I believe that they are all right on with their views. I for one have little knowledge of the present world situtation, and should be more aware. I will improve my knowledge. It would be good if the majority of the people in the nation start to understand these problems before things turn bad. What I feel will happen first is a repete of the great depression, maybe worse. Perhaps things won’t be as bad if most people learn about these problems, and prepare for what ever comes our way. We all need to set aside our personal feelings of which party is right or wrong in the present government. We need to vote those out that are problem makers. We need to focus on who will be the best person to move this country forward in the right direction. They should focus on eleminating the debt, balancing the budget and work on problems we have now and those we will be facing in the future. The right person in my opinion does care about the country, and not looking for a bigger or a better position in a NWO.

  • http://www.runescape.com Billy

    im fat so ill feed everyone my belly!!!!! we will all make it through these hard times =]

  • Rita

    Everything that is happening in the world is all by design. the elites are destroying the economy so they can implement global money (new world order). the wars are by design, too. not gonna get into all that here, but please do read and learn. it is an ugly truth. but if we start making the people aware of what has been going on since the beginning of time, we can unite and fight the corrupt elites. this is our only chance. obama, the best puppet the rothschilds ever had, is moving fast! please, explore what i’m saying.

    • disqus_qQewe9vFd8

      Rite, It is hard to get people to not laugh at you for telling them H.R. 2847 is now a law as of July 1, 2014. They do not understand what it means. They do not believe ;you when you tell them about it. One guy just got hit real hard with the reality of what I was telling him. He is so angry, frustrated and possibly will go back to his nationalities country in Africa. They cannot believe the the POS would do such a thing to them.

  • The G Man

    NWO? Globalization?

    Welcome, to City 17.

    • disqus_qQewe9vFd8

      HR 2847, welcome to the U.S.S.A How do we become the U.S.A. again.

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