Tuesday, June 17, 2014

Alternative News site runs our story on Klickex

The alternative news site Silver Doctors has picked up and posted our recent article about Klickex. We thank them for posting the article which will give it broader attention for sure.

It is interesting reading through the comments on that site below the article. They are mostly skeptical that something like the GSD would be a good thing. I get similar types of questions and comments from some readers when I post articles on this topic.

That is one reason I added this Q&A followup. Whenever you discuss any kind of new currency that could be used at the super national level, naturally people are going to have questions and be skeptical. So I understand that.

That doesn't change my obligation to report news here and try to do so as factually as I can. I will add a few more Q&A here to try and further address concerns and questions people would naturally have.

Q: Why should we have a "super sovereign" currency that operates above the national level?

A: My understanding of the GSD is that it is not intended to replace any national currency. It is designed with the intent of being an alternative people can use if they want to. My understanding is that it will have "asset backing", but exactly how that would work is not yet defined. The whole project is still in early development right now. My understanding is that the intent is to have a currency that will be sufficiently backed so as to keep it very stable in value (low risk) and offer a high degree of confidence to users.

We all know that fiat currencies around the world have been very unstable at times. This is an attempt to attack that problem and offer people an alternative. I understand some will like the idea and some won't. I would suggest at least waiting to see how it would work to form a conclusion however.

Q: Will this currency have gold backing?

A: The details of the asset backing are not available yet. Here is what the Klickex presentation states:

"The "Global Stability Dollar" (GSD) is based upon weightings determined by the GSI (Global Stability Index) – a basket of distributed assets readily tradable in real time."

Until we know what the Global Stability Index includes we won't know what all the backing might include. We can assume it will have a variety of assets behind it based on this description. And it could include gold and other "hard" assets.

Q: Will this currency become a global currency?

A: I don't know. I believe it has the potential to be used globally based on my understanding of it. All I know right now per the Klickex presentation is that it is a project in implentation phase. I believe it is likely to show up on a regional basis first. That is why I believe this is a newsworthy story to follow and that readers should have interest in it. This blog has provided many links readers can followup on to do their own research.

Q: Why do we need another "fiat" currency if they are unstable?

A: We can't really know if this is just another version of a "fiat" currency until we know how it would work and how the asset backing would work. That is an unknown at this time and something to follow as more information is known. I think the GSD will be something new in terms of how it would work.

Q: When should I expect to see this (the GSD) being used somewhere?

A: I don't know. Like anything this is a process. It involves a lot of coordination and groundwork to make it functional and make sure it works. It involves getting regulatory approvals in many jurisdictions. I know it is in progress, but do not know how far along the process is or how it will ultimately turn out. 

Q: Can you point me to some background info about what Klickex is already doing?

A: Yes, there is a lot available on the internet. But here is an interview Robert Bell did in 2013 that talks about an innovative technology that is used at Klickex today.

Q: Is this a good thing or a bad thing?

A: Everyone has to make up their own mind on that question. What I can do here is try to report news so people will have good factual data to make their decisions on. I try to keep an open mind and hope others will do the same. Right now I don't see anything bad about this becoming an alternative currency and think it has potential to be a good thing. I certainly believe Klickex intends it to be a good thing. I understand some people will always disagree.

Conclusion: I think this is a great story to keep tabs on and it could be a part of major monetary system change (which is why this blog covers it). But I don't think people should stress about it. This is not something about to happen tomorrow. And I think we will have plenty of time and information about it before it might be something you would see being used. My suggestion is to stay informed, do your own research, and keep an open mind.

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