Quote from: iamback on March 17, 2015, 01:32:18 AM

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Subject: Mar 17: Idiotic goldbugs think gold is a reserve currency!
From: iamback
Date: Mon, March 16, 2015 9:36 pm
To: "Armstrong Economics" <armstrongeconomics@gmail.com>
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Quote from: countryfree on March 16, 2015, 10:57:04 PM

Quote from: iamback on March 14, 2015, 12:00:58 AM

Quote from: countryfree on March 13, 2015, 08:06:22 PM

A singe currency is as feasible as world peace.
China, Russia, the UK, the US, North Korea or Japan will never accept a currency out of their direct control.

Readers don't read, or lack reading comprehension.

Why don't you try again to read the thread. The national currencies will float against the reserve currency.

I've understood the subject.
So that new reserve currency would be pretty much like gold. But no currency is pegged to gold any longer, and you may say that all national currencies are currently floating against gold, or that gold floats against each national currency, but few countries will accept that this new reserve currency shall be the standard against which all the others should be measured. Setting a reserve currency requires a consensus to begin with, but that doesn't exist at this time. Questions to ask is what authority could say this is the new world reserve currency, and why should countries accept it as such.

This topic should not be in "Economics", but in "Politics".

Tsk, tsk. Small minds.

Gold isn't a reserve currency, because A) central banks and moreover investors don't choose to hold most of their reserves in it; B) because the supply of gold can't expand rapidly enough to pay back the annual interest in the usury based economy (and don't forget the public demands fractional reserve banking because they love debt); C) there is no authority that can backstop and insure the fractional reserve banking system that the public clamors for by printing more gold; and D) governments hate gold because they can't print it in order to fund their ever increasing fiscal deficits and citizenry love unlimited government spending.

You goldbugs are so clueless and blinded by the tinfoil hats drooping down over your eyes.

As for why the nations will accept the new one-world reserve currency, it is because they much prefer a central bank that is a power sharing agreement and orthogonal to any one nation, than the situation now with the USA at helm.

And this is political-economics, with as much emphasis on the economics as the political, as I demonstrated above with the point about money supply must expanded at the compounded average usury rate in the debt-based economy.

Get off my lawn kiddies!

In a situation where there are multiple sovereign defaults, no one has the balance sheet to provide another, bigger, bailout. Except the IMF. Concerning the bolded text above, wouldn't it be possible that no consensus would be needed; everyone is so interconnected (read:screwed) that an SDR might just be the 'fairest' option?