In commenting on my earlier posting of today “We could forget about gold . . . “, Steve Kurtz writes — “The global banking elite will continue to do all possible to prevent fixing currencies to a commodity of any sort. They have some power now to adjust interest rates to defend exchange rates. Also they have the ability to increase the money supply ad infinitum. Few people choose to give up power they already have, even if just a % reduction.”
True enough, but what will they do about power when the next monetary crisis comes along? In his book The End of Alchemy, Mervyn King, not long retired as the Governor of the Bank of England — and as authoritative as any other individual in the world — writes, not once but several times, that a crash at least as severe as 2008, is inevitable. And Lord King is not the only eminent voice.
Trade balances are more unequal than ever before. Inequalities in living standards between the advanced countries and the Third World are greater than ever before. The present monetary situation simply cannot continue for much longer.
Although most of the major commercial banks now have reserves of about 10% against their loans — compared with 0% to 2% in 2008 — they are not immune from going bankrupt again. They would needs to be 100% as Irving Fisher and other eminent economists proposed in the ‘Chicago Plan’ of 1933.
But come the next monetary collapse the advanced country governments will not be able to print more money because they have no government bonds to sell. It would seen to be Monopoly money straight away. To be able to print more money that wouldn’t be fictional governments would have to requisition private property on a large scale. That simply couldn’t be done without coups d’etat by the social elite and the private banking sector.
When the inevitable monetary collapse occurs then the dollar will have to relinquish its pole position as the world’s reserve currency. A new one will have to be instituted. Whether it’s backed up by gold or platinum or kilowatt=hours doesn’t matter.