When you look at the mechanics of money and you consider how the exchange process works you begin to see certain rules that govern all money. The Federal Reserve released a book way back in the early part of the 20th century called Modern Money Mechanics. Let me give you an example of some of the physics that govern currency. The more currency a nation has in circulation the less it is worth. The less currency a nation has in circulation the more it is worth. This is one of the rules that apply to anything that is being used as a medium of exchange. Be it fiat currency or even gold.
When you look at the dinar and compare it to the mechanics of money there is no way that the currency can gain value. A lot of people are expecting this currency to revalue and create a financial windfall that will set them up for the rest of their lives. There have been revalues and they are not uncommon. In all of history there has never been a revalue above 50 percent. A revalue can only be done by a central bank. A revalue is a policy decision that is enacted to fight inflation. The typical revalue is between 3 to 7 percent. The largest one I have seen is about 30 percent. Revalues only happen to currencies that are pegged. Floating currencies don’t revalue because the market determines their value not the central bank. So the belief that drives dinar sales and the speculation in this currency is that it will revalue and people will be made wealthy from this revalue.
The problem is that when you consider how money actually works and money mechanics in general then you begin to realize that this belief is impossible. There are a few major problems behind the dinar and the money mechanics involved to make this happen.
First the dinar is currently valued at 1166 dinar to one U.S. dollar. If the dinar was to move to a value of just 1 U.S. penny then that would be a 1,000 percent revalue. Second Iraq’s M1 money supply is over 71 trillion dinar. This is the main reason the dinar is valued so low. If there was less currency in circulation then the dinar would be worth more. Third the dinar requires a reserve to back it and give it value. The reserves used that backs the dinar is the U.S. dollar. There are not enough U.S. dollars in Iraq’s reserves to back the dinar to even a penny. There are not enough reserves to move the dinar beyond 15 percent.
In spite of the impossibility of this ever happening and the improbability due to the actual way money really works, people get around it by saying the buzz words Global Currency Reset or GCR. Even though something like the expected revalue of the Iraqi dinar has never happened in the entire history of money, and given the fact that the laws that govern money mechanics makes this impossible. People still believe in the revalue due to their belief in this coming GCR event. Portions of the Global Currency Reset could be considered a conspiracy theory depending on which definition you believe.
When you Google the words Global Currency Reset a whole host of websites and blog sites come up promoting it or debunking it. There are also many definitions to the term Global Currency Reset. Some of these aspects blend together and people pick and choose which part of this theory they choose to believe. It is important to note that not everyone that believes in a Global Currency Reset believes everything that is written about this so-called coming dinar revalue. So for the sake of clarity let me go over just some of the definitions of GCR that are out there. Dinar speculators are mixed about these different definitions. Some of them only believe part of this theory and people tend to choose the parts that make the most sense to them. Let’s look at just some of the definitions of GCR
“NESARA is an acronym for the proposed National Economic Security and Reformation Act, a set of economic reforms suggested during the 1990s by Dr. Harvey Barnard. Barnard claimed that the proposals, which included replacing the income tax with a national sales tax, abolishing compound interest on secured loans, and returning to a bimetallic currency, would result in 0% inflation and a more stable economy. The proposals were never introduced before congress, and the only congressman known to have commented on the bill is Ron Paul, dismissively, and through a spokesman.” (From Wikipedia)
I checked the congressional record for the 1990’s. Then I did a search through the entire data base. This is what the search result said. “NESARA does not occur in the data base.” Then I did a search for National Economic Security And Reform Act. It was not in the congressional record at all. This means that this bill never came before congress. Don’t take my word for it. Look it up yourself
This means that if NESARA never came before congress then it never became law!
But, NESARA took on a life of it’s own. It has become a cult-like conspiracy theory promoted by Shaini Goodwin. She claims the act was actually passed with additional provisions. She also claims George W Bush and the Supreme Court have kept it hidden. In 2000 Barnard decided to release his proposal for NESARA on the internet. Soon after this a person known as the Dove of Oneness began posting about NESARA on internet forums. The Dove of Oneness has been identified as Shaini Goodwin. She was a former student of The Ramatha School of Enlightenment. Founded by Judy Zebra Knight aka Judith Darlene Hampton. Basically these are new age beliefs! Knight has appeared on U.S. TV shows such as Larry King, The Merv Griffen Show, and MSNBC. Her teachings have attracted people like Shirley MacLaine and Linda Evans. Among the bazaar teachings is the belief that a convert to this teaching is god!
Goodwin has embellished and added to NESARA. She makes references to white knights. Most of whom are high-ranking military officials who have been struggling to have the NESARA law implemented despite opposition from George Bush.
Barnard became aware of Goodwin’s description of NESARA before his death in 2005. He denied that NESARA had been enacted into law or even had been assigned a tracking number, and he condemned Goodwin’s allegations as a disinformation campaign. Since Goodwin began commenting on NESARA, other Internet-based Conspiracy theorist have attached itself to NESARA giving this whole thing a life of it’s own.
NESARA will attach itself to a legitimate thing to gain credibility. NESARA can be found in the fair tax movement, It has shown up at tea party events, and on occasion hides at those functions probably looking for converts. It has also attached itself to Something called CMKX, and it talks about the payout of CMKX. Using terms like global settlements and referencing the white knights. NESARA has attached itself to the revalue of the Iraqi dinar as well. These white nights are the men who will implement this supposedly secret law.
This opens up a whole new world as to why the dinar has not revalued yet! The term Global Currency Reset and Global Settlements first began with NESARA. According to current NESARA doctrine, when the dinar revalues then the government will make the CMKX pay out. This will cause the white nights to enforce the law, and the entire world resets, Then space aliens will show up on planet earth and introduce themselves. I am not making this up! This is what they believe! They believe that we are being watched right now. As soon as all this stuff happens Aliens will fly here in their spaceships.
Investigators who have researched Goodwin’s claims found that she began commenting on NESARA in connection with Omega Trust, a fraudulent investment scheme whose creator, Clyde Hood, was on trial at the time. According to Goodwin, Omega Trust investors would receive their returns after NESARA was announced. Goodwin repeatedly predicted that the NESARA announcement would occur in the very near future, although in later years she was more reserved in these predictions. The Omega Trust still lives on in the Internet as a supposed global poverty relief program and in part as a Global Currency Reset.
The Coming Dollar Crash
Not everyone who believes in the GCR believes in the garbage that NESARA teaches. It is important to note that this does not represent every dinar speculator. There is only an outré fringe of people who believe this. People choose and pick from different aspects of this GCR conspiracy and there are different definitions. I felt it was proper to cover the origins of the catch phrase Global Currency Reset and Global Settlements.
The dollar crash definition basically says that there is a coming crash to the U.S. dollar. This is due to in part to the United States debt and in part to the overprinting of the U.S. dollar. People have been predicting this demise of the dollar for years
The basic belief here is that the dollar will lose reserve status around the world and it will become unstable. When this happens countries around the world will replace their reserves and the dinar will revalue as a result. Sometimes the idea here is that the dinar will use it’s resources to revalue it’s currency rather than the U.S. dollar
Gold and silver sellers have been predicting the end of the dollar for some time now and the GCR is used to hype gold and silver sales. Dinar Gurus have taken this a step further and said that the collapse of the dollar and the GCR event will be the thing that brings about a revalue in the Iraqi dinar. So it does not matter about the history of revalues because something is getting ready to happen that has never happened before in history. Then the claim is made that people can’t understand this new system and they can’t escape fiat currency terms.
A rabbit trail of this belief says that countries will give values to their currency based on the resources that particular nation has. And the commodities that are in that nation such as oil will determine the currency value. The IMF will force all nations to place a different value on their currency based on national resources
Another belief is that the International Monetary Fund (IMF) will force all nations to simply revalue their currency. The dollar will go down because it is over printed and the dinar will go up. Gold and silver will go up as well. This belief is slightly different as it has nothing to do with a nation’s resources. This is popular among gold and silver sellers like Lyndsey Williams. He is one of many precious metal gurus that is currently spreading this hype
See dinar update 3. According to Williams, the IMF is going to make this announcement for a GCR around March of 2014
Another belief is that reserves around the world will be replaced with a group of currencies or a basket of currencies thus replacing the dollar. While this is the only plausible aspect of the GCR theory and it has some merit, it will not happen overnight and it will not result in a total removal of the dollar or a revalue that will make every dinar holder wealthy.
Then there is another aspect of the GCR belief which claims it is a part of biblical prophecy. People subscribe to it because they believe it is a fulfillment of bible prophecy. To these people money mechanics don’t matter because they take their faith in scripture and misapply it to the GCR event.
These are just some of the different definitions of GCR. As crazy as all this sounds “GCR” proponents can’t explain what they’re trying to convey beyond throwing around a few buzzwords like “fiat currency” and “fractional reserve banking” Then these same pumpers only attributing these things to America. Most of these guys don’t have a clue as to how the money mechanics associated with these terms really work. So let’s explore it
The problems with GCR
I think the best way to explain some of this is to use some terms and facts that Jack has shared over at Baghdad Invest. He has spent a great deal of time debunking common misunderstandings with the economics of this alleged GCR event. So let me paraphrase and share his data as it provides some great insight.
As for revaluing a currency based on a nations gold supplies this is what Jack thinks.
“Do you even comprehend how BRICS possess more gold than all other countries combined” being another perfect example of an outrageously false claim. BRICS have certainly been importing more gold but over half of what they import gets consumed in industrial use and demand for jewelry.
“In 2013, the country of China produced 342 tons of gold and consumed 840 tons thus importing 498 tons.” That isn’t even remotely the same as the lie “China has been secretly adding 498 tons to their currency reserves every year” that you seem to be pumping… The same is true of India. They use nearly all of what they import on jewelry. That’s why the Indian government slapped on a 10% duty on gold bullion but a 15% import duty for gold jewelry. Most gold in Asia is going to private citizens not banks. Combined Euro zone gold reserves alone are more than the combined BRICS reserves, so that’s another lie you have told.
As for “revaluing national currencies based on Gold in a Global Reset”, here is the Gold’s share of national reserves by country:
10% South Africa
2% Saudi Arabia
Ninety nine percent Of China and Brazil’s wealth is holding other countries paper money. Trillions of paper USD’s. Ninety eight percent of Iraq’s wealth is USD paper. Ninety three percent of India’s wealth is again paper money. It really is time to drop the total mental delusion that
A. We’re going back on a 100% full reserve gold standard. There simply isn’t enough gold in the world which is why we came off it in the first place! The entire combined GLOBAL reserves are around 32,000 tons or around $1.2 Trillion worth. Compare that to the $80 trillion global economy, and
B. That doing so will cause Iraq to soar and the USA to plummet because Iraq holds a tiny 30 tons of gold which is less than Nepal’s or Slovakia’s.
As far as backing all currency on a nation’s resources this is what Jack had to convey
Iraq only has $1.2 billion worth of gold. If you tried to back 85 trillion dinar solely with that you would end up with an equivalent dollar rate of 70833:1 or 60x LESS! Even if it doubled overnight Jim-Willie-style it would still only be worth $3 billion.
Basing a currency’s value on vague unspecified resources simply lying in the ground as Jan claims is total nonsense. As for backing the dinar with oil goes, Iraq may have 140 billion barrels of oil. Giving a $100 per barrel oil price is only equivalent to $14 trillion in assets. BUT that $14 trillion worth of oil is going to be spread over the next 127 years in the form of 3.0 million barrels per day actual production. If Iraq increases exports to 4 million barrels, then that $14 trillion worth of oil will still be spread over the next 96 years. Some highly deluded people genuinely think all that 140 billion barrels will all be magically teleported out of the ground in 2014 and donated to the CBI. It will be stuck in some giant warehouse for backing the dinar tomorrow without a single drop being sold or used ever again!
No country is going to squeeze in every single year of economy from 2014-2141AD all into a 2014 currency’s valuation. This is the absurd GCR in a nutshell. You could make the same argument with the USA and claim the US Dollar is going to skyrocket if you count 127 years’ worth of future US exports which equals $194 trillion or 13.8 times Iraq’s worth in oil reserves. Iraq has 85 trillion dinar (M2) and 140 billion barrels of oil or basically, enough to back 607 Dinar with 1 barrel worth $100. Except they won’t because Iraq will consume around 1/5 to 1/4 of it themselves and export virtually all of the rest to non-Iraqi’s and in both cases all that oil is no longer available to back the Dinar!
Same thing applies with minerals. If you have 1 million tons of aluminum resources and you dig it up and use 300 thousand tons to build stuff and then you sell 700 thousand tons to other countries, how much do you have left for the purpose of currency backing that is just sitting there in a pile and doing nothing? None!!!! People dig up oil and metals to use or export, and once it gets used or exported it’s not available for backing anything. This is why simply quoting a nation’s oil reserves and assigning an arbitrary GCR exchange rate to the currency based on that is absurd.
It’s also comically inconsistent. Apparently Canada is going to fall and Iraq is going to rise due to Iraq’s oil. This is hilarious given that Canada has 175 billion barrels of oil or 25% more oil than Iraq’s 140 billion barrels. Canada has a lot of other natural resources. China will also LOSE out due to being a net IMPORTER of virtually every raw resource going from oil & LNG to iron, copper & aluminum, titanium, uranium, coal, timber, rubber, etc. Why do people think they’re running around Africa & South America buttering up the locals? Because they don’t have enough resources to sustain even what they consume let alone surplus leftover to back 110 trillion Yuan at some wonder high rate! Yet more proof that the people shoveling this GCR conspiracy haven’t even bothered to research any of the countries they’re pumping.
Using non-recyclable resources like oil as currency backing and as an inflation hedge is also totally backwards and contradictory. As each year goes by, oil gets burnt up or sold to someone else to burn up. It becomes no longer available. Iraq can’t keep it in a vault for all eternity. They have to constantly sell it to fund central government in place of taxes or burn it internally for things like transportation, oil power stations, and construction, just out of necessity. Every time Iraq burns or exports a barrel of oil that oil will no longer be inside Iraq backing the dinar. This action will be making whatever GCR resource peg more and more OVER-valued as each year goes by.
If Iraq has 140 billion barrels of oil and sells oil at 1.1 billion barrels per year and consumes more internally on top of that. Then as each year goes by, its resources backing its currency increasingly dwindle and they’ll need to LOWER the value of their currency peg vs oil. They will do this with an endless stream of annual DOWNWARD RV’s because if they lose currency-backing-resources each year, then their resource-backed-currency will lose value each year too! And all the while their population is growing they still have to print more money for liquidity purposes amplifying this effect. What “Genius” came up with that? Avoiding inflation by using a constantly dwindling resource that is naturally permanently inflationary? If you want a hedge against inflation, you don’t peg your currency to an asset which shrinks each year like oil as that is exactly the same long-term effect as printing too much fiat money and not having the resources to back it!
There is just as many GCR gurus spewing out junk economics as there are RV gurus. Many people cling to this because they’re deathly afraid of admitting Iraq is going to redenominate and they are left trying to find some alternative “magic millionaire elixir” to allow Iraq to keep 85 trillion Dinar and somehow magically make it more valuable to avoid admitting the blatantly obvious “elephant in the room”! The Iraqi Dinar is 3,000 times weaker than the Kuwaiti Dinar simply because Iraq has printed 3,000 times more paper money than Kuwait. A vastly disproportionate people hanging round GCR conspiracy stuff are either Doomsday gold bugs predicting imminent $5,000 gold prices every month since 1999 or they are Dinar holders who have realized the absurdity of a 100,000% RV for Iraq, yet strangely they see nothing wrong in extending the same contorted logic to the whole planet to try to keep the dream going!
People keep talking about the oil that Iraq has as a means to base a new value on their currency. Countries don’t base currency values on oil reserves and then once again on oil exports years later when the oil actually gets dug up and sold. This is because you would be double counting everything and essentially trying to price in that same barrel of oil twice!
On the USA losing it’s reserve status these are some of Jack’s thoughts.
The USA’s “reserve status” is not going to collapse to zero as if the USD got replaced by say the SDR (IMF Special Drawing Rights) which gets expanded to include the BRICS countries as some are claiming or similar new supra-national reserve basket of currencies. The USD is still going to make up a large chunk of that simply out of economic necessity for trade. The USA still exports over $1.5 trillion in goods per year. This is 3/4 of China’s $2 trillion and still the 2nd place exporter out of some +190 countries. Some people are wildly over-reacting to a trend for more multi-national reserves somehow meaning total collapse of the USA’s economy. This is not true. Even in these dark times, exporting 3/4 of what China does with only 1/5th of the population, (300 million people vs 1.5 billion people) is hardly something to be embarrassed about.
What will happen if countries stop selling oil in dollars is that their future inflationary risk will be spread over a larger number of currencies. Basically they won’t continue to devalue at the same rate with a peg to multiple currencies rather than pure dollars. BUT – that won’t undo existing massive devaluation of inflated currencies like the Dinar, Dong, Rupiah, Rial, and others. they will remain weak until they redenominate simply because they’ve printed even more money in their own currencies than even the USA has. It’ll simply hedge against further future devaluation. It won’t undo the past. Just like a cut in a budget deficit will slow the rate of increase of more future debt – it won’t shrink the existing debt.
The USA has printed $11 trillion dollars for 300 million Americans which work out to $36 thousand per American. Even if real figures were double that still works out to $72 thousand per American. That is a worst case of 100% of all USD used only by Americans. Iraq however has printed 85 trillion Dinar for 30 million Iraqi people. That works out to over 2.8 million dinar per Iraqi citizen – the classical definition of past hyper-inflation. When everyone in your country is a multi-millionaire in local currency units and yet the average annual salary is barely $5 thousand in real international terms then that is exactly what hyper-inflation is. People who also believe reducing dollar holdings equal the dollar will tank and the Yuan will soar also need to get a grip of how much money China has printed.
Which of the big nations have printed the most currency units?
1. China – 110 trillion Yuan
2. Russia – 29 trillion Rubles
3. India – 20 trillion Rupee
4. USA – 10.9 trillion Dollars
5. Eurozone – 9.2 trillion Euro’s
Even if the USA’s money supply was double of the official figures, it would still only be 1/5th that of China’s.
A lot of people bash the Federal Reserve for printing too much money to bail out the banks (and rightly so), but strangely they seem to ignore the fact China has printed 10 times more Yuan than even the Federal Reserve has printed dollars! Inflation for many BRICS countries is just as high as the USA’s rate. Russia’s is 6.5%, India’s is 6.0-7.5%, Brazil’s is 6%, and South Africa’s rate is 5.5-6.5%. This is also assuming everyone else is honest and the USA is the only country which under-reports it! Food price inflation in China/India has been in double digits in many areas these past few years. Again it’s amazing how some people act like only the USA experiences inflation.
In short: Moving away from a pure dollar peg will slow down the rate of future devaluation based on Federal Reserve over-printing the money supply, but what it WON’T do is cause the dinar’s value to shoot up! This is because Iraq will continue to have 85 trillion dinar in circulation until they redenominate. It does not matter what the Fed does as Iraq’s problem is too many over-printed DINAR not too many over-printed dollars!
It’s a common guru fallacy that the dinar must be weak purely because of the dollar which will be corrected by a mythical GCR event. This is nonsense. The dinar is also weak vs the Euro (1590:1), GBP (1919:1), Gold (1.475m Dinar / oz), Silver (23,157 Dinar / oz), commodities (eg, Wheat ($272/mt) is 317,457 Dinar / mt (metric tonne), etc.
The Dinar is weak because Iraq has printed too many dinars. No matter what the dollar does the dinar will continue to be weak until they redenominate and reduce their 85 trillion money supply back down to the 85 billion it used to be pre-1990′s inflation. The USD could vanish off the face of the Earth overnight, and the dinar would still have a rate of 1590:1 vs the Euro!
Same is true of the Dong – it’s utterly mind-boggling how some people can sit there with a straight face and say a GCR will adjust the undervalued Dong, when the Dong’s 21600:1 rate vs the dollar is a direct result of the Vietnamese Central Bank printing an eye-watering 3.5 QUADRILLION Dong! For clarity’s sake that’s 3,519 trillion Dong vs the Fed’s $11 trillion-dollar.
There is some truth to the move to a multi-polar financial reserve world, but there’s also a whole lot of hysterical guru B.S. surrounding RVing the Dinar/Dong by +100,000% in either national “RV’s” or some mythical Global Currency Reset event which really isn’t about making any currency shoot up or down 1,000 times.
The move away from pure dollar to a mix of dollar, Euro’s, Yuan, etc, is more about ending a downward spiral of future unilateral Federal Reserve devaluations. Add to that the usual USA vs China power-bloc politics. Not some +100,000% return get-rich-quick scheme that involves convincing amateur speculators that all the 10 times most inflated currencies on Earth are unfairly undervalued and are not really inflated! This is about 99 percent of almost all Dinar/Dong RV pumping in a nutshell.
I would like to thank Jack for sharing this information. I have edited his comments in an effort to make his information easier to digest. I have not changed his information, his numbers, or his points..I just changed things like $ to dollar and tn to trillion. I changed some phrasing as well. All of Jack’s data is in tact and his points are made. Those were not changed
One thing I will say is Iraq has a little over 71 trillion dinar in their M1 alone. That entire dinar supply is only meant for a population of 30 million people. The dinar is only meant for circulation inside of Iraq. America has 11 Trillion U.S. dollars in their M2 for a population of over 300 million people. Two thirds of the U.S. dollar is exported and used around the world in currency reserves and by other nations as a means for exchange.
In part 2 we will examine more problems with the Global Currency Reset Doctrine and wrap things up.
20 thoughts on “The Global Currency Reset Part 1”
follow up comments
At no point did I state that I believe in the reset or the dinar or any guru. I merely pointed out the obvious that none of us know with any certainty what will transpire. And that your thoughts on the subject are just that, your thoughts. You just assumed you knew what I am / was thinking, just as you are doing with the whole subject at hand, proving the point that you are making assumptions about things you have no ability to know. You then proceeded to take an element of my response and extrapolate it into quite a straw man argument: that because I believe there’s no way we can truly know how much gold a nation has, in no way equates to the idea that I believe everyone is lying everywhere on all fronts all the time. Your response to my comment illustrates the point I was making.
You might be absolutely correct, you might not. Either way you are just speculating because you have no way of knowing what other people that you don’t know are thinking and how they are going to behave in the future. You can make educated deductions but you can’t say something will or will not happen as there will always be information and variables you don’t have access to.
I do believe we are on the cusp of some sort of geopolitical / financial paradigm shift, so I find the reset concept compelling. But I have no horse in the race.
My reason for commenting was not in defense of the dinar / reset as you assumed, it was to address the issue of people speaking in definitives about things they can’t know. Had you accurately read what I wrote, you would have understood that.
In your original comment you said “All we can do is speculate and try and interpret the information we are given, which is often purposefully skewed”
Often purposefully skewed is a fancy way of saying lying. Sure that is not the word being used by your comment but that is the meaning of the word.
“an example being how much gold a nation has, we have no idea if those numbers we are given are at all accurate as we are not in the vaults auditing and seeing first hand.”
As your next statement points out we don’t know because we are not there with them in the vaults. This is to back up your previous statement of “purposefully skewed”.
“We have to trust that those numbers are accurate, yet if I was in charge of telling the world how much wealth in gold my nation had, I too would not tell the truth as I would then be revealing my financial poker hand to the other players on the geopolitical chessboard.”
This statement completes the argument of your first statement and yet further speculates that countries may be lying about gold in their reserves for political reasons. This by the way is an absurd notion.
Yes I was speaking in definitives, but they were not my definitives. It was information that central banks and reserves put out from around the world. I will ask you again, did you click on the links in the post to verify the things I said? If you did not take the time to do this was it because you thought it would be a waste of time and the numbers are not accurate?
Once again these are official numbers from government agencies not my numbers. Not my definitives. If you don’t believe these numbers or think that they cannot be trusted then they are not definite!
Which means they are deceiving on purpose as to your first comment points out. This means they are LYING! Deception on purpose is lying.
No assumptions were made here based on the comments you made about gold reserves or the reserve amounts in central banks. You yourself said you would lie. So am I not to conclude that you believe that the central banks are lying about their gold reserves?
So then my response is supposed to prove that all the links and the sources that are merely repeated in this article are wrong? If so then that is a very weak case.
Ok then no more assumptions. I will ask you straight up. Do you believe in the Global Currency Reset? If you do then why? Do you believe in revalue of the Iraqi dinar? Now is the time to voice your point of view.
“The capstone of your comment was “Everyone should refrain from speaking in definitives because you don’t know what is going to happen. You are just another person with a blog with an opinion.”
Your chastisement of my point of view indicates that you believe I should refrain from writing articles with opinions based on factual data. If this is not the case then I apologize for my response and the misunderstanding. Every article I write has supporting links. Some articles have as many as 40 supporting links. The opinions I write are based on those numbers.
To end your previous comment you said “Your opinion may be weighted with certain understandings, certain knowledge you believe you’ve acquired and that it is accurate,” So the government sources may not be accurate? Once again have you checked the links and seen my sources? If not then how do you know that the “knowledge I believed to have acquired” is not accurate? Who is the one that is assuming now?
I assume nothing in my response that you have not communicated. Yes parts of this article are based on my Opinion. That is what all blogs are. But the data from government resources and websites are true. If you don’t believe that then you do believe that everyone is lying.
There is no assumption here. Did you miss the question marks? Most all the dinar comments ended in a question mark asking for further data. Yet you make these very questions accusations.
Let’s make a deal, How about you make a statement about what you believe and answer some of the questions I asked in these last two comments. At least that way I can know where you stand and I won’t make anymore assumptions perceived or implied.
Unless yourself and / or jack are involved in the IMF or any other global financial institution, then you cannot speak with any certainty on any matter as to whether or not something will or will not happen.
You can try and deduce and speculate as to what you believe might happen based on past precedents and fundamentals, and you might deduce correctly, you might be entirely wrong. But all you can do is speculate. That’s all your blog post on the gcr is, speculation biased towards what you think might happen based on your thought processes.
I find it interesting so many people seem to speak as if they know without a doubt what is going to transpire.
None of us are in the room, behind the closed doors making these decisions or participating in the conversation.
All we can do is speculate and try and interpret the information we are given, which is often purposefully skewed (an example being how much gold a nation has, we have no idea if those numbers we are given are at all accurate as we are not in the vaults auditing and seeing first hand. We have to trust that those numbers are accurate, yet if I was in charge of telling the world how much wealth in gold my nation had, I too would not tell the truth as I would then be revealing my financial poker hand to the other players on the geopolitical chessboard).
Everyone should refrain from speaking in definitives because you don’t know what is going to happen. You are just another person with a blog with an opinion. Your opinion may be weighted with certain understandings, certain knowledge you believe you’ve acquired and that it is accurate, but unless you are involved in any of the processes you are speculating on, it’s still just an opinion.
Well I could agree with you, but then we’d both be wrong. No sense in that. If I throw a rock in the air I may speculate that gravity will kick in and the rock will come back to earth on an educated guess. Does that mean I am wrong? Well the only way to find out is to throw the rock into the air and see what happens.
Past precedents and fundamentals like gravity are pretty reliable and so is the fact that the most inflated currencies in the world won’t revalue overnight making everyone millionaires. Such an event would ultimately destroy the global economy and the whole system will come crashing down. Furthermore fundamental things are foundations. Remove a foundation from a building and watch the whole thing collapse
The whole thing is really like a mechanic working on a car’s engine trying to figure out where the problems are and someone comes up and tells the mechanic to check the air in the tires, like maybe that’s the problem! That is how stupid this dinar investment and the global currency reset thing really is.
We are dealing with global problems with the global financial engine and someone is pointing to something that has absolutely nothing to do with the real problems. So while I say the conspiracy theory solutions won’t work it is because I am speculating?
Government agencies have called the dinar a scam. Law offices have said it is a scam. There are rip-off reports calling it a scam. BBB calls it a scam. The IMF told the BBC that the dinar investment is fraudulent. But I am speculating and everyone is lying? In spite of all the evidence that was presented! The dinar gurus and dealers are the only ones telling the truth?
While it is true that my opinion is in parts of this blog article, This entire article is not just an educated guess. This post is also loaded with some hard facts with links to provide the support for these facts. So I am not the only one wrong. Every single link is wrong? Did you not click on the links and see the sources for the numbers on the gold supply?
But in your view everyone is lying. The nations are not reporting the amount of reserves they actually have. The governments are not reporting the actual amount of precious metals they have so they are lying. Last but not least all the central banks are lying about the amount of currency they have printed. Everyone is lying but the dinar dealers? Do you see a problem here? Who is the one who is really speculating?
Your theory is nothing more than a wild conspiracy theory with no basis in truth what so ever! You stated,
“We have no idea if those numbers we are given are at all accurate as we are not in the vaults auditing and seeing first hand. We have to trust that those numbers are accurate, yet if I was in charge of telling the world how much wealth in gold my nation had, I too would not tell the truth.”
This is where you are wrong. Just because you would lie does not mean the total world reserves are wrong when they are reporting their numbers .It does not mean that the world’s gold supply is fabricated! You also stated,
“Everyone should refrain from speaking in definitives because you don’t know what is going to happen. You are just another person with a blog with an opinion.”
So then shame on me for having a blog which states an opinion that destroys your dinar pipe dream? When are people going to wake up and realize that they are not going to become rich overnight on the worlds most inflated currencies! You can cling to a GCR event or any conspiracy theory you want. It is not going to happen!
Maybe I am looking at this wrong. I will take another look. This time I will be sure to check the air in the tires!
Pingback: Global Currency Reset part 2 | Iraq Currency Watch
Solid explanation of M1, and why IQD, VNN, USD M1 figures don’t carry the relevance linear-thinking economists have affixed to it…
Marcus – did you read the article I posted below before writing part II of your GCR series? I was surprised that you didn’t comment on it, because it does contradict your premise of M1 relevance as it pertains to a re-balance of currency values and pairings…hoping you address it, it makes a ton of sense to me!
I released part 2 before I responded because both articles were really one project. I had to finish it without distraction or it would take even longer to finish. Did you read part 2? Did you read part 1 all the way through? I think you know that as far as our belief system goes we are pretty far apart and I really don’t feel a need to debate you or comment on your site about your article. I left the link and the comment on my site so if people want to hear what you have to say then they can look for themselves in the interest of fairness. This is so people can see both sides
I read through your article with a quick glance. I am short on time and there is so much to address that it would involve enough content to fill at least 3 or 4 articles. I think at this point it would be better to agree to disagree. While I respect your position I don’t agree with a lot of what you have written. My time is limited with all the projects I have going right now. While I can’t address everything I can point to a few things.
You state that there is no direct connection between M1 money supply and inflation as if to imply that money supply has nothing to do with inflation. However I believe this to be a false premise. Even Wikipedia says “M2 is a broader classification of money than M1. M2 is a key economic indicator used to forecast inflation.” This means that projecting all your models on M1 and inflation is inherently flawed.
You stated in your article “As we reviewed in Why the Vietnamese Dong Will Reset, the State Bank of Vietnam was indirectly forced into devaluing their currency in order to attract trade and also be a dumping ground for U.S. inflation as the Vietnamese people used the dollar instead of the dong in their everyday lives.”
Like I said earlier the fact is the Vietnamese Central Bank printing a woping 3.5 QUADRILLION Dong! Once again for clarity’s sake that’s 3,519 trillion Dong vs the Fed’s $11 trillion-dollar. I am Just trying to understand your position. Do you believe that the money supply does not matter because of comparing M1 to inflation? Or that the dong will reset in spite of the amount printed? Do you believe that Vietnam being a communist nation was not a part of the factor in attracting trade?
In your own words you admit that by dumping U.S. dollars in Vietnam we are also dumping inflation. It sounds like we are pretty far apart in our opinions. That must be the linear thinker in me. It is true that the U.S. is exporting inflation. But printing more dollars is exactly how they are exporting inflation
Economics 101= The currency supply directly affects the value.
I do believe that there is restructuring going on. We are moving away from the dollar being the dominate reserve currency. But that will not result in an overnight global currency reset or revalue of the world’s most inflated currencies that will make everyone millionaires! It will take some time to get Basel III and other restructuring in place. The best way for these currencies to gain value is to 1 redenominate or 2 as the dollar becomes less of a reserve then the value of the dollar will fall in time and the Dong will rise in time. (no pun intended) Both options are bad for countries that rely on exports which is why their values are low in the first place.
If you disagree with this then so be it. As I see it if we can’t get beyond that then there is really nothing to talk about. I really don’t think we have any common ground for discussion.
I think we may have a disconnect – my initials are JC (for real), but I’m not the JC who wrote the article. Just wanted to clarify, thanks for your response.
Just a quick response to your rebuttal – JC Collins’ series on a GCR flies in the face of the typical Keynesian rhetoric and central-bank-controlled M1 angle – which is why it’s so, so good. You guys are as far apart on your views as east is fr west, and that’s totally cool, Marcus. I just posted the article to offer some food for thought outside the regurgitated Beltway central planner mantra. Enjoy your day.
J.C. To be honest I thought you were J.C. Collins. I am sorry for the mix up. I thought that you held the beliefs that were in that article. So then let me go into a few areas just briefly
1. nations classify money differently. For example America does not have an M0. America does have an M3. The Feds stopped reporting on M3 somewhere around 2006. Iraq has an M0 and it is the same as our M1. Iraq’s M1 is the same as our M2. I don’t see any distinction between other countries definition of their money stock in his article.
This could be why Mr. Collins compares M1 to inflation.
2.The problem here is money that is classified as America’s M1 could contract while money that could be classified as America’s M2 and not fit into M1 could expand. This is why looking at an M1 chart only can create an illusion that the money supply is contracting when in fact it is expanding. This is why Inflation is compared to M2. In other words physical currency could contract as electronic currency expands.
None of the models take this into account.
3. Mr. Collins seems to think that the affects of expanding the money supply only apply to America. He seems to think that it does not matter what the money supplies are for other countries. Everything will reset regardless. If you want to raise the value of a currency you find a way to contract the money supply. This is not done overnight and that is what makes an GCR event hokum. While he says that money supplies do not matter he also states
“Vietnam was indirectly forced into devaluing their currency in order to attract trade and also be a dumping ground for U.S. inflation”
How is it that the dollar amount acts as a dumping ground for inflation but the dong amount does not? He even says that they are forced into debasing their currency. How do they do that? they accomplish this by printing way to much.
So on one hand he says currency supplies have nothing to do with inflation then on the other hand when he wants to make a political point all of a sudden these two things are related! he can’t have it both ways.
Marcus, another absurdity starting with NESARA and continuing with some “GCR” variants is the almost total split from reality of those who think there’s unimaginable amount of gold just floating around waiting to give them their “blessings” or that flooding the planet with more money will make the value of money go up! Example:-
“Ascended Master St Germain has watched over those funds and in addition has coordinated much gold coming here from Venus and other off-planet locations which cumulatively now equal $1+40 zeros which is sufficient to provide $10Million to each man, woman and child after NESARA’s Announcement. All NESARA gold and precious metals are in US Banks“
Funny but true Response : “Those banks must have some darn big vaults… At current prices, this would be a layer of gold over the entire surface of the earth 11 trillion miles thick. Not just land, but oceans too”
Some people really don’t seem to grasp that:-
1. There actually isn’t that much gold in the world (32,000 tons of gold as global bullion reserves (privately owned jewellery, industrial electronics / architecture, etc, don’t count) = $1.2-1.3tn of gold to be “shared” by 7bn people = $171 worth of gold per person on the planet (at current gold prices)…
2. If there were vast amounts of gold, then gold would no more be a precious metal (out of supply & demand) than copper or aluminum…
3. Printing $10m for each person on the planet will just trigger off hyper-inflation. It essentially involves increasing the global money supply from $80tn to $70qdrn ($70,000tn). No different to the Federal Reserve expanding America’s “evil paper fiat” money from $11tn to $9,625tn (which most sane people see as a bad thing)… all that would happen is what happened in Iraq when they expanded 80bn Dinar -> 80tn Dinar = $1 loaves of bread become $1,000.
No-one will get richer because you’d now have $70,000tn global money chasing just $80tn of global economy (the total value of all goods / services collectively produced on the planet). What would everyone spend their money on given just 0.11% of everyone’s $10m buys every product ever made? They’d spend it outbidding each other driving up the price of everything even further…
4. According the the World Gold Council, only 18% of all gold is actually held by central banks for currency backing. 52% goes on jewellery, 16% is privately owned coins, 12% is industrial and 2% misc:-
Most “Dinar” related “GCR” rubbish is just a ripoff of NESARA but with “oil” replacing gold due to the target audience of Dinar holders and their obsessive fetish over Iraqi oil being “special” or “unique” (and “their RV windfall” not Iraq’s future reconstruction income). Exactly the same conspiracy gets reinvented over and over again : “Farm Claims” -> “NESARA” -> “Prosperity Packages” -> “GCR”, etc… People always buy into stuff during every economic downturn or panic crisis (remember Y2K bug hysteria or 21st Dec 2012 “end of the Mayan calendar”?)
Iraq may sell $100bn worth of oil each year, but most of that pays for their domestic govt (healthcare, education, police, army, etc). Barely $5bn is left over to increase CBI reserves. Dinar “investors” waiting on +$5bn per year CBI “income” + $1.5bn gold = “supporting” turning a $75bn currency into a stupid +$85,000-$297,500bn “GCR RV” are in for an awful long wait – as described in the song – “Until the twelfth of never and that’s a long, long time…”
Marcus… you have a talent for words. Where do you find all the time for research?
This research has been over 4 years in the making. It started in 2009. It is more of a hobby now then anything else. For a few years it was really intense and it was an education. The research also assisted my efforts in the other blog I have which deals with global economics. It is called Biblical Views and World Economics,
I decided to talk about biblical views on a limited basis. This is not really an attempt to preach. What I find is that a lot of Christians are the targets of things like this dinar/dong scam. They believe it is actually a part of biblical prophecy based on the mark of the beast and the end time kingdom.
So I take the time to explain actual biblical prophecy and I try to debunk economic scams that are targeted towards Christians. Being a christian myself and seeing this deception I have come to the conclusion that something must be done. There are a lot of gurus who claim to be christian and they claim to have a background in something they know nothing about. This is very damaging to ones faith because they translate faith in God to Faith in a wolf in sheep’s clothing. Christians tend to be to trusting.
My research and this blog has also helped me with establishing my music site which is designed as a free service for musicians.
As for the research on this post it is not all mine. Over at Baghdad Invest There is a man who goes by the name of Jack. He comments on articles and he corrects misconceptions with real economic data. So I borrowed from him and I borrowed from some of his phrases and points. I did not just borrow from him. I verified a lot of what he said too.
This guy is obviously educated in economics and he has a lot of wisdom. He has an effective way of cutting through all the bull,
Part 2 of the GCR will contain more of his data in addition to some other thoughts of my own
I have been holding on to my Dinar in the hope you are wrong as I would have found it hard to take if I got what I could for them and then the RV finally happened and I missed it, however I now accept that I have been taken for a mug and Its time to let go!!
Marcus you are amazing and your thoughts, links and facts are fantastic. I have used your site more than once to help people see the truth. Keep up the great work, and THANK YOU
Jack offers a few points to ponder, as do you, Marcus. There are already deals in place to end-around petrodollar transactions, it is already taking place (Russia has deals, Turkey has deals, Iran has deals, and venezuela has deals that all circumvent OPEC petrotransactions using USD). Several undervalued currencies will unhinge from their USD peg and their value will change (hard to say by how much). I’m sorry – but we will agree to disagree on how reserve currency status effects the US position in the world. The instant the Fed tapered, currency fled global emerging markets, and we had overnight devaluations in at least a dozen countries – some, as in Kazhakstan, Ukraine and Columbia, were more than 20% OVERNIGHT. On one miniscule FRB taper. That, alone, drives the decision to remove US from atop its perch. USD will still play a prominent role, no question – but a massive devaluation of USD is mathematical certainty (I’m happy to embed a minimum of 20 articles from world-renowned economists supporting this claim, if you have the bandwidth to read them all).
Marcus u have too much time on your hands. The lady doth protest toooo much
Sent from my iPhone
That is really funny Howard. Actually the only protest I ever seem to get is from dinar gurus who now need to explain their pumping activities to people who don’t want to wake up from their dinar pipe dream
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