One World Economic Policy

Here it is folks, yet another attempt to kill individual sovereignty. Immediately following the election in the states, word has spread from the mass media to the small blogs [1] [2] [3] [4] [5] [6] of a plan to enact a single world policy on economics, currency, and trade. The attempt or rather strong suggestion is to create a single world currency for the purpose of trade, but what it really is, is an attack on sovereignty.

I have a son who is soon to turn 19, the legal age of majority in British Columbia, and another who is 16, the legal age to drive. They are currently home schooled, with the assistance of the local school board via a set of correspondence courses. In the courses of all four of my sons (the younger ones being still in grade school), I have yet to see history textbooks which describe in detail how we came up with this crazy system of fiat money.

Money was based on a gold standard as early as 1971. (Re: Bretton Woods)

In the seventies, the world economic delegates came to the conclusion that it would be a better idea to based world currency on a 'Gross Domestic Product' standard. In other words, the trade value of a dollar in Canada was set to be based on the total value of all products within the scope of Canada's control, instead of gold. This included every tree, road, firetruck, etc. you name it. What may look like a good idea on paper had one side effect which I'm sure no one thought of. Products, are assets, and assets came be the basis to loans. We switched from a gold standard (something real) for money, to a token system based on debt.

While the rest of the world was conforming to this new deal, the Untied States of America pulled a fast one. In 1972, they signed a trade agreements to have all crude oil trade exclusively in US dollars, effectively creating a second standard for the dollar based on oil. [1] [2] [3] This all worked out very well for the states for the first 30-35 years, until peak oil.

Venezuela was the first thing that poked a hole in the oil lifeboat America was floating in. Venezuela decided to trade in Euro's instead.

Everything in a free market system, effects everything else. The reason the gold standard was used for countless years was because there is a limited supply of it. It has real intrinsic value, it is something real rather then imagined, and has lasting virility. When you trade 1 pound of gold for a load of lumber, you know that if there is less gold available in the free market, it's value will go up, you might get two loads of lumber. If the supply of the real money source increases, it's buying power deceases, you get half a load of lumber. The buying power of the US dollar was on a steady increase, until the source disappeared. Imagine a gold standard, where all the gold vanished off he face of the earth.

Of course the Untied States is not in a situation where all their oil has disappeared, so far anyway, many countries still trade oil in US dollars, although some have started trading via Venezuela, and the US still has the other standard for it's dollar, debt. The problem with a monetary system based on debt, is it's ability to pay off that debt, when the investments in high risk home loans failed, the dollar's debt increased a proportionately, when the United States borrowed more fiat money from China to cover it, in the trillions, the US debt load went through the roof.

Now after the election in the States, with the global economy in crisis, everyone is running around for a quick fix. Enter the master plan of all screw ups, global currency.

Most people assume that this coming great depression will mean a price increase on Main street. Meaning that, the cost of daily food stuffs, such as bread, cereal, milk, etc, will increase in price like the price jump of rice a few months ago. What they don't realize is that the cost of such items might actually drop through the floor, but that wouldn't mean that this is good news.

Prices that effect our daily lives are set by a number of factors, it isn't just a simple matter of supply and demand, but rather the interaction between wage, labor, supply, demand, and various other subtle factors. If the demand for milk increases beyond the supply the price of milk increases, and if the wages are set in stone due to union contracts, or employees unwilling to take pay cuts, the price increases, and so on. If the reverse is true, the price falls. Somethings during an economic crisis will end up costing more, others will cost less, it isn't a matter of being able to cut costs, increase or decrease wages, reach full employment, or many of the other claims that economic policy makers claim will or won't happen that matters. It's the ability of those effected by change to adept that matters.

I'll say that again to make it clear, it's the ability of those effected by change to adept that matters.

I am not against the 'One World government', or it's recent incarnation “Global Currency', because I believe that the Anti-Christ is coming to mark us all on the forehead. I am against any measure that puts all the eggs in one basket on any issue. Being able to adept to change has as it's prerequisite the need for choice. The current situation has many advisors suggesting that we all switch from a multi-sourced GDP trade dollar standard, to a global currency based on the totally on single global source GDP debt system. Not really that great a change when it comes to the math involved, but it completely eliminates choice in currencies, the US dollar, the Canadian dollar, etc, will be compared to for all time against a global standard instead of compared to each other. When it reaches it's zenith of debt, I hope I'm not around, if we think this current crisis is bad, we haven't seen anything yet.

I'd like to relate a little story I tell my children about money to help them understand the fiat system, or more accurately understand Canada's Bank Act, and it's effect on the British North America Act (Canada's real constitution), but I don't tell them that part...

There was an island with five men on it that declared that they would use a currency issued by the bank, that this currency should be based on the products produced on the island instead of gold or some other solid piece of mother earth. So they appointed a treasurer, who formed a bank for the island, and was allowed to load out money based on how much the current total value of products were island.

One of the men, decided that it was a good time to start a chicken farm, and went to the bank to borrow $100 from the Island bank, and buy up all the chickens on the island, as well as the feed, and other supplies he would need to sell eggs to the other people on the island.

The plan worked great at first. The chicken farmer bought lumber and cage wire from one of the men on the island, feed from another, chickens from the last. And started selling eggs to everyone on the island. The men who had sold him wire, feed, lumber etc, had money to buy eggs, because they had sold those items that were needed for the chicken farm. Everyone was happy, especially the banker.

Eventually the loan came due on the chicken farm, and the chicken farmer paid off the $100 to the bank that he had borrowed to start his business. The banker was very happy to receive this payment, and immediately foreclosed on the farm.

Get it?

The chicken farmer also owed interest on the $100, but the banker never lent out anything more then the initial $100, that meant that the interest on the loan didn't exist, there was no way for the farmer to ever pay back the loan. It was doomed from the start.

It doesn't matter how many islands, banks, and farmers you add, eventually it will all collapse. We are on a island called Earth, God help the chicken farmer if we start a global fiat money system.

- Wolfe

Quote this article on your site

To create link towards this article on your website,
copy and paste the text below in your page.

Preview :

One World Economic Policy
Thursday, 06 November 2008
Here it is folks, yet another attempt to kill individual sovereignty. Immediately following the election in the states, word has spread from the mass...

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."