New International trade currency needed to balance wealth redistribution of International markets
Its time for a independent audit of the IMF gold holdings . 160,000 tons of gold has ever been mined from the face of this planet. http://www.kitco.com/ind/Saxena/jun192009.html Transfer of WealthGresham's Law of the 14th Century is playing out through the way Tariff Free Trade has opened Pandora's box of the devaluing process you describe in your article "Exter's liquidity pyramid " http://www.kitco.com/ind/Brochert/jun192009.html
In reading the article based off the Financial Times
Washington is unable to call all the shots http://www.ft.com/cms/s/0/16e9f3e8-5944-11de-80b3-00144feabdc0.html?nclick_check=1one thing is not considered ....as China is stock piling raw materials , and say that a price collapse comes from it in commodities , even if this happens , what if China decides to not take our dollar for the durables we want to import from them and with energy countries that supply world market supply unless its in this ETF Fund basket of currencies back by Precious Metals is where the dollar becomes an excepted currency for trade as this becomes the New reserve currency for international trade ? http://www.wisdomtree.com/library/pdf/materials/WisdomTree-Case-for-Emerging-Currencies-CEW-570.pdf
The USA can not recover and pay higher taxes , and increased wages , based solely off a consumer driven market that cannot maintain a 14 trillion dollar a year rate of consumption and the consumables be lowering in price , as its devaluing effects only leads to a Consolidation of the wealth being created . We have watched this play out since the formation of the WTO and the Tariff Free trade agreements that took away the counter balance to different valued currencies trading in the same markets , the lower devaluing the higher because of a pure supply-side economic theory that ends in pure devaluation and transfer of wealth creation ; ie manufacturing as a primary unit of wealth creation .
We need a new way to Counter balance the currencies of International Trade , like is described below .....
this will set the pace for a new International Monetary Policy , backed with PM markets
This ETF traded fund is a start of a new way of valuation of currency trade to help counter balance the trend of different valued cuirrencies trading in the same markets , and their devaluing effects that happen when lower valued currencies trade in the same markets as Higher valued ones , with the inclusions of Precious metals markets acting as balancing counter measures . http://www.wisdomtree.com/library/pdf/materials/WisdomTree-Case-for-Emerging-Currencies-CEW-570.pdfYou see Goldman is even seeing this trend as a Positive direction for sustainable growth
Goldman Sachs | BRICs
Over the next 50 years, Brazil, Russia, India and China—the BRICs economies— could become a much larger force in the world economy. We map out GDP growth, ...http://www2.goldmansachs.com/ideas/brics/index.html
| BRIC economies factor of stability and growth: Indian PM |
If this is not resolved with some positive form of diplomacy , the US and UK could very well find themselves Isolated from the rest of the worlds resources and supply of durables at a time in financial history when a world supply of goods and services need to be in constant supply for all nations so that a continued path of financial progress can be achieved .
Interruptions in human needs at this time in history must carefully be considered as to the damage that could result to infrastructures and their ability to keep constant supply of vital needs in route .
Russia Dumps the U.S. Dollar for Euro as Reserve Currency Currencies / Global Financial System May 19, 2009 - 07:37 PM http://www.marketoracle.co.uk/Article10755.html But today what this calling of the change of the Reserve Currency status that the dollar represents by Chinas willing to negotiate the change , is that this gives the USA a better way to Negotiate with China and Russia ways to curb the violence in Radical regimes like Iran and Korea , what a Position to be in !But to focus on issues relating to Cap and Trade , to the
Negotiate for Human rights in the 3rd world , finding ways to
increase wages that have not kept up because
this has forced competition in labor pools around the world to
compete with the Lowest labor pool , and this is devaluing all the
currencies towards the cheapest , and we call this Gresham's
Law of the 14th Century , and its time for a Intellectual Debate on
this topic ,The High Cost of the China-WTO Deal
Administration's own analysis suggests spiraling deficits, job
losses
by Robert E. Scott http://www.epi.org/publications/entry/issuebriefs_ib137/
; this independent analogy of how the USA and European Economies
would crumble under the tariff Free trade agreements is a direct
example of Gresham's Law of the 14th Century ; read here
; http://www.columbia.edu/~ram15/grash.html
, which we should argue with the professor here in the thesis over
the fact that it " DOES " indeed lead to the devaluation
of the higher valued currency , like the Dollar and Euro , so
engaging in alternative financial " Revaluation investments
like the Wisdom Tree ETF fund can counter the effects of a Fiat
currency system thats designed with this devaluation flaw thats
devaluing even the lowest economies in the WTO trade partnership
!!!!!!!!!!!!!!!
Different valued currencies trading in the same markets
, lower valued currencies devaluing the higher valued
ones , too the point that it has even exhausted credit , as this
function working in the supply - side system with Technology in
manufacturing reaching a production speed , has come to the
point of the world not being able to consume fast enough what a
industrialized developed world can produce , but at the same
time , certain raw materials we need to produce vital needs
with are showing signs of shortages at current methods of producing
these requirements , and these needs are in locations around the
world , that if trade policy and Currency relationships are not
carefully crafted to generate agreeable Trade relationships with
WTO trade partners , Isolation of nations could result from a
reject of one nations currency wanting to trade for resources from
another that rejects that nations trade currency , like is starting
to evolve with China wanting to change the Dollar out of the
reserve currency positions and replace it with the basket of all
WTO trade partners currencies , guaranteeing these currencies with
Precious Metals markets around the world .
Take a look at this 30 plus year chart of the Gold market ; http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx , it reflects the way Inflation was running in the US and UK in the 1970s , then Reagan came into office and was able to take what was a domestic Inflation issue and dissolve it into the 3rd world with opening of trade , that lasted till now . Today we have came full circle back to where we were with facing domestic inflation and now have a Phenomenon of Worldwide Inflation , as the world now has reached a level of development that will drive demand for Quality of Life improvements , and if this demand is suppressed in anyway , civil unrest will grow as the developed nations push for a better way of life .
China ready to discuss , as well all in
the world should be rallying around this needed debate , and
together chart a course that's beyond the past history lessons
that showed no sustainability either , but in this new century a
new reserve currency at G20 summit would be something that if all
trade partners can find the paths that would make the future
manageable then growth can be manageable as well . ; http://en.rian.ru/world/20090323/120689432.html
If China and Russia would be willing to negotiate peaceful
resolutions with world adversaries like Iran , and Korea in
exchange for transitions of the dollar out of the status of reserve
currency , what position ! http://en.rian.ru/world/20090323/120689432.html
.
http://www.wisdomtree.com/library/pdf/materials/WisdomTree-Case-for-Emerging-Currencies-CEW-570.pdf
Dissolve this deficit into an averaging of the value of the
Creation of the ETF of Currencies like has been proposed by the
Chinese , that can then be restructured and paid for over the
course of time as the world harnesses Inflation as the new world
growth mechanism changing this negative and turning it into a
positive for a progressive way forward for all humanities needs
.
This can address all forms of categories of life's needs
, healthcare , as well as all of life's fundamental valued
needs , setting standards of quality as the way we value the price
we pay for advancing standards of sustainable living
.
Bank Stress Tests: The Government Isn't Going Far Enough
Banks paying back TARP at 78 billion , a Mere drop in the Bucket to the Commercial real estate default issue coming 1 trillion dollar unsustainable debt ....
http://www.businessweek.com/investing/wall_street_news_blog/archives/2009/06/there_are_a_cou.html""" There’s also the massive problem of commercial real estate assets and loans—none of which have been calculated into the mix. Banks hold some $1 trillion of these loans, the report notes. Research out of Deutsche Bank shows that the majority of losses on these loans (never mind the derivatives and securities created off of them) won’t show up for another few years. The default rate of U.S. commercial real estate bank loans has already reached its highest level in 15 years and is not expected to peak until 2011, according to another new report by Real Estate Econometrics. """
Subject: http://www.usdebtclock.org/ USA DEBT CLOCKPosted by: Mara Der Hovanesian on June 09
There are a couple of things that strike me as odd and even disturbing about the new congressional oversight report on the recent bank stress tests.
First, the “adverse scenario” on these 19 banks isn’t adverse enough. Didn’t we already know that? There were plenty of folks raising the specter of double-digit unemployment long ago. Only now that unemployment has climbed to a rate of 9.4% is the government suddenly saying it has “serious concerns” that perhaps the tests weren’t rigorous enough.
There’s also the massive problem of commercial real estate assets and loans—none of which have been calculated into the mix. Banks hold some $1 trillion of these loans, the report notes. Research out of Deutsche Bank shows that the majority of losses on these loans (never mind the derivatives and securities created off of them) won’t show up for another few years. The default rate of U.S. commercial real estate bank loans has already reached its highest level in 15 years and is not expected to peak until 2011, according to another new report by Real Estate Econometrics.
Two very respectable professors helped Congress put together the recent report and gave their blessing on the “solidly designed working model” of the stress tests, backing them up with the usual econometric hieroglyphics and mathematical models. The report recommends that banks and their regulators continue the stress tests. That seems reasonable: No doubt that we want to know if our banks are healthy and able to withstand tough economic headwinds.
But we also want to know if they are getting into trouble enough to take down the whole system. The 168-page report by the Congressional Oversight Panel reminds us that our regulators are still not able to assess that properly. The ability to understand the interconnectivity among banks and the risk they present, especially in the derivatives market, is still a big fat unknown. And the regulators and mathematical geniuses have yet to figure out a way to monitor or measure that risk.
Seems we’re still flying in the wind.
