One World Currency

March 13, 2009

A single currency has been rumored as the goal of international bankers by conspiracy theorists for decades, it’s nothing new. The conspiracy goes much further, saying this is the first step on the road to one world government. Rockefeller has even admitted as much in his own auto-biography.

The problem with currency unions like the Euro is that each country has a different level of productivity. Just as tremendous wealth in Alberta causes a strong Canadian dollar that punishes the maritime provinces, the same thing happens in Europe between Germany and Italy. The union in Europe is supposed to be a union of independent states, but so too was the United States of America until Lincoln (that was the real cause of the civil war) and FDR came along. The currency union in Europe will make that relationship impossible to sustain. In the United States and Canada the problem isn’t as severe because it’s much easier for people to move (similar culture, language, religion, etc) but even we have some form of transfer payments to help the poor regions cope, and that’s not the case in Europe. The same movement towards socialistic big government ideas that swept the US and Canada will eventually hit Europe and decades from now it will look very similar to the US and Canada today, with European wide pension plans and an ever increasing amount of resources allocated by the central European government to level the playing field between states. That’s the covert process by which power is usurped from individual regions and centralized in the hands of a few men.

But here’s the problem, everybody knows this story now, so it’s unlikely China and Brazil and especially Russia will get suckered into this scheme on a global scale like the American states and the European states. All of that is why I believe it will be an electronic currency that exists only on computer. If they go ahead with this plan, it probably won’t be a currency like the Euro that individuals can touch and hold and use at the store. It will be a replacement for the US dollar as global reserve and essentially act exactly as gold used to act in previous centuries as a mechanism for automatic re-balancing of current account deficits. Every country will have their national currency pegged to this international currency, at different rates based on their productivity, and if a country over consumes and thus has diminishing reserves of the international currency, they must devalue their national currency or default. Exactly like the gold standard, but without the gold, at least that’s how it will be sold. Nobody will sign up unless it works like this.

The advantage of course is no need to waste resources digging metal out of the ground. The disadvantage is the ease with which people can inflate this new currency like any other fiat currency. Gold was not used as money because it’s easy to spell, it’s because it imposes discipline. You can’t print gold. There is no difference between the new currency and the US dollar, except one will be new and the other will be old. The new currency may even initially be backed by gold, the IMF claims to have 3000 tons of gold. But so too was the US dollar, they still claim to have 8000 tons of gold. So the initial backing will only be a ruse to get support. One day 40 years from now there will be another deflation scare or war that needs to be fought (but instead of fighting each other we’ll be fighting carbon dioxide or something) and the world will leave the gold standard just as it did 40 years ago. There’s always another crisis behind the curtain.

I’m actually 100% convinced such a plan could work flawlessly for a few decades then once we’re all convinced it’s the best thing since sliced bread and completely vested in its success, they will create another crisis to push the process one step further.

At least that’s how the story goes…