Iobey777: FRANK, DELTA, WALKINGSTICK AND TEAMS! God bless! GREAT CC!! Love the “CLOSE ENCOUNTERS” PHRASE…”we are now at a “close encounter with the RI”!! IMO..we are VERY close!!! I know we keep saying that, but each time..it’s true! IMO!
Clare: FANTASTIC CC …FANTASTIC INFORMATION!
THANKS SO MUCH FRANK, WALKINGSTICK, DELTA, AG-1, I-TEAM & TEAMS!
I LOVED THE LINE……. “WE ARE NOW CLOSE ENCOUNTER TO THE 3 ZEROS” – FRANK 26
I LOVED THE INFO ABOUT THINGS GOING LIVE TODAY……. I LOVED THE WHOLE CC…
Monday Night KTFA CC 7-8-19
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Samson: China’s cash reserves rise
8th July, 2019
China’s foreign exchange reserves rose 18.23 billion dollars in June to 3.119 trillion dollars, according to data released by the Central Bank of China on Monday
Economists polled by Reuters had expected reserves, the world’s largest, to rise by $ 2 billion to $ 3.103 billion, while growing hopes of a trade truce with the United States helped ease downward pressure on the Chinese yuan
China’s gold reserves rose to 87.27 billion dollars from 79.83 billion dollars at the end of May
In a related context, China and the United States are resuming trade talks in Beijing, the South China Morning Post reported Monday, quoting a well-informed source
The newspaper pointed out that “a Chinese source confirmed that the US negotiators will return to Beijing next week to discuss details
According to the source, the Chinese side wants first of all to see how the US administration will ease the ban on what Huawei is supplying, as promised by President Donald Trump. After that, China will make a commitment to buy US agricultural products LINK
Coco: “FDR takes United States off gold standard. The government held the $35 per ounce price until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. In 1974, President Gerald Ford signed legislation that permitted Americans again to own gold bullion.”
IMO -The U.S. Fiscal year ends on Septermber 30th each year. There must have been a reason for choosing Sunday, August 15, 1971 to abandon the Gold Standard, 6 weeks prior to end of fiscal year. Just wondering if President Trump will choose a similar time period to re-instate the gold or asset backed dollar.
At some point over the past 10+ years following the Dinar, I read once about Iraq changing their Fiscal Year End to September 30th as well. This is all in my opinion and any input would be appreciated. Thank you.
Hammy14: Coco, Iraq’s fiscal year is still January 1 to December 31. Not sure how that plays into what your thinking, but if you’re implying we need an asset backed dollar to be able to exchange against an asset backed dinar, as many in here believe, then I guess it’s possible we could see an asset backed dollar before the beginning of our next fiscal year, which begins on October 1. We shall see.
Samson: How to build a future free of currency wars?
8th July, 2019 by Harold James
The terrible experience of the 1930s must remind us that the war of trade and the war of currencies are linked, like the horse and the wagon. Now that the administration of US President Donald Trump has implemented America’s first protectionist agenda, the outbreak of currency conflict is only a matter of time.
A large-scale currency war has not broken out in a long time, although the world came close to it after the 2008 financial crisis when Brazilian Finance Minister Guido Mantega used the term currency war to describe very low US interest rates. In the footsteps of the United States, Japan and Europe seem to have adopted similar export promotion strategies, and the low exchange rate has become an undeclared but essential feature of economic recovery in advanced economies.
Similarly, after 2012, the euro crisis began to appear more manageable, only after the euro began to depreciate against the dollar. As many economists have already pointed out in the UK, the flexible exchange rate has given the UK, unlike the euro zone countries, a tool that has a unique effectiveness to manage the shocks of that period.
However, currency concerns soon faded after the crisis, largely due to the concurrent pursuit of quantitative easing by major central banks, which has already taken place to influence exchange rates. The first possible currency war in the twenty-first century paved the way for an inconclusive and fragile truce. But if any major economy adopts protectionism in order to gain an advantage at the expense of others, the currency issue will come back to the fore.
Ultimately, national currencies become a clear economic weapon in the hands of policymakers. That is why the 44 States that participated in the 1944 Bretton Woods Conference agreed on a framework to ensure exchange rate stability. The United States played the dominant bargaining role and was committed to creating an open international system free of tariffs and trade wars. For any other country, there was no real choice but to agree on an exchange rate that would allow it to maintain an almost balanced external account.
Since then, the risk of a trade war has always meant a return to the currency debate. In the escalating conflict today, Trump was ultimately to focus on the monetary policies of other countries. Trump has long accused China of devaluing its currency (even when it did exactly the opposite). In response to ECB President Mario Draghi’s recent announcement of a new round of quantitative easing, Trump chanted, “They have done this for years without accountability, together with China and others.”
As in the 1930s, currency war is attractive to those who view geopolitics as a zero-sum game. Trump’s attacks on the ECB are to some extent related to trade, but they also aim to create a dispute between EU member states.
As critics of the European Monetary System have said in their long-standing complaints, Germany enjoys a lower exchange rate in euros than would have been the case with the German mark. From Trump’s point of view, Germany maintains a trade policy in favor of its exporters, Woods, led by the United States, has been specifically designed to prevent commercial doctrine and its associated decline in competitive value.
However, John Maynard Keynes, a Bretton Woods engineer, believes that the postwar arrangement should have gone much further, by including institutional checks to punish countries with large surpluses or deficits. The elimination of trade imbalances would go hand in hand with his plan to create a new global monetary system, which could have been based on a global artificial currency called bancor (a French compound word meaning gold created by the bank).
As Draghi pointed out in the letter, which provoked Trump’s anger, the euro was originally set up as a mechanism to get rid of competitive cuts. After Keynes, efforts to revive the idea of a non-national public currency – Mundell in the sixties of the last century – fixed and sterile.
But now, thanks to new technology, having a global currency at hand is possible. Only last month, Facebook unveiled its plans to create a digital currency, Libra, which will be linked to a range of government currencies. According to Facebook, the initiative was designed to reach the poorest people in the world, including 1.7 billion without a bank accoun
The extensive user base is necessary to ensure that Libra is primarily used as a means of exchange rather than a tool for financial speculation. This makes it the antithesis of the first-generation currencies of the series, such as Betcown, which are subject to artificial scarcity maintained through the process of “mining.” The very negative reaction to the Facebook announcement to Libera was certainly frustrating. However, if an alternative currency based on multiple assets is adopted on a large scale, it will not be as destabilizing as its critics claim.
Using a truly global currency, users will buy and sell goods and services, including employment, which means that wages must be determined in a non-national currency. The new distribution will have multiple currencies in one region that look like a rebound into the pre-modern world when the value of gold and silver coins fluctuates against each other. This may not be a bad result.
Remarkably, the fluctuation in the value of gold and silver allowed for greater flexibility in wages, and thus reduced unemployment. The more the use of a global currency (or multiple global currencies), the currency war becomes less applicable.
Technology revives the twentieth-century dream of a global monetary system devoid of economic nationalism. The key to doing so is to cut the link – as in the case of the euro – between money and the nation state. LINK