tag:blogger.com,1999:blog-3381985327954951465.post3358644250315199697..comments2023-09-23T08:36:08.569-05:00Comments on The View From Our Whitehouse - Monetary System Reform Watchdog: Kemp Foundation Forum on Exchange Rates - Dr. Warren Coats VideoLarry Whitehttp://www.blogger.com/profile/02134971615760319862noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3381985327954951465.post-80262815886893701192017-04-24T07:05:13.394-05:002017-04-24T07:05:13.394-05:00Thank you for your comments. Just one thought to a...Thank you for your comments. Just one thought to add. After researching this now for some time I have only found one proposal (Dr. Coats) out there fleshed out with details on how to actually try and make it work in the real world. I see lot of other ideas and random suggestions, but no details as to how we would get from where we are today to the new system. It's easy to to just say we should do this or that or that Russian or China will do this or that. But when you really research it, there is no actual detailed plan on how to implement it you can find (at least that I can find). For example, China (PBOC Official) tossed out using the SDR as global reserve currency in 2009. But they don't have any kind of actual plan how to do that (or even any global consensus to do it) as far as I know. There are tons of questions like how do people/nations convert their existing reserves/savings? How do you educate the public to any major changes? What exchange rate to convert from an old system to a new one? Who controls they supply of currency? How is that enforced? Who will the public trust? and many more. Dr. Coats actually attempts to deal with questions like this in his proposal which makes it unique from what I have seen so far.<br /><br />For sure I don't know how things may change in the future or if they will change much at all. But one reason I have featured Dr. Coats proposal so much is that I know it is an actual detailed plan that people who make policy decisions are aware of. So my guess is that they might turn to something like that if a decision to make major change to the existing system is ever made. But I would not rule out the kind of change you describe either. I honestly don't know if or when any major change will take place. Or what the change might be. Time will tell.Larry Whitehttps://www.blogger.com/profile/02134971615760319862noreply@blogger.comtag:blogger.com,1999:blog-3381985327954951465.post-51420450283329617112017-04-24T05:05:41.509-05:002017-04-24T05:05:41.509-05:00Let's change our perspectives a tiny bit, shal...Let's change our perspectives a tiny bit, shall we?<br /><br />Contrary to widespread opinion SDRs are not a/one basket of currencies, because there are several owners. <br />Today SDRs are a marketplace of currencies.<br />Several streams of political power are confluencing via printing presses to a political marketplace under a concertedly agreed quota.<br />In other words: the quota represents the political power of several printing presses.<br /><br />Now, what would change if SDRs were used as WRC?<br />The power of several national printing presses (and the resulting economic independence of several nations) would have to be transferred to the IMF or alike. <br />It does not matter at all whether SDRs are linked to a basket of physical goods or precious metals. Every nation would instantly loose her economic independence. Who in the right mind would agree to such a transfer? <br />The debate about SDRs is a smoke screen. It's purpose is twofold: to buy time for the big players to facilitate the change to a new non-debt based monetary system and to conceal the progress on that.<br /><br />[PDF] the international monetary system after the financial crisis<br />xxtps://www.ecb.europa.eu/pub/pdf/scpops/ecbocp123.pdf?<br /><br />---------------------------------------------------------------------------------<br />xxtp://www.bis.org/publ/work456.pdf<br /><br />"In this essay I have argued that the Achilles heel of that system is that it <br />amplifies the “excess financial elasticity” of domestic monetary and financial <br />regimes, ie it exacerbates their inability to prevent the build-up of financial <br />imbalances, or outsize financial cycles, that lead to serious financial crises and <br />macroeconomic dislocations. This view contrasts sharply with others that, so far, <br />have received more attention. To varying degrees, these emphasise the failure of <br />the system to prevent disruptive current account imbalances and its tendency to <br />generate a structural shortage of safe assets – the “excess saving” and “excess <br />demand for safe assets” views, respectively. "<br /><br />conclusion: debt-based systems are structurally unstable!<br />Not a revelation, I know, but this opens space for the next question:<br />What would a non-debt based international monetary system look like?<br /><br />---------------------------------------------------------------------------------<br /><br />Believe it or not, if we can remove SDRs and credit-based systems from the list of possible International Monetary Systems, this leaves us, at least in my opinion, with only one solution: a store of value-based IMS, which needs a physical anchor to be stable.<br />In extremis: a bancor using the blockchain as a medium of exchange and a demonetized, physical reference store of value, marked to market daily: gold. <br /><br />Zoellick 2010: xxtps://www.imf.org/external/am/2010/pdf/zoellick.pdf<br /><br />A world reserve currency AND a world reserve asset!<br /><br /><br />Have a nice day.<br />Anonymousnoreply@blogger.com