The Truth About The Coming Dollar Collapse on September 27th 2016

us-dollar-collapseThere is a strange belief floating around on several monetary conspiracy websites and blog sites. This belief can also be found on many YouTube channels. It says the dollar will totally collapse on September 27th, 2016. As a result of this event, every world currency will also collapse and the global economy will suffer great calamity. Many people have bought into this theory. Is there any truth to it? Let’s explore more details about this belief. Here is their case from their perspective. This is basically a paraphrase of their thought process blended together from many of these sites.

What They Claim

The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. This collapse will not only bring down our dollar but it will also bring down every fiat currency around the world. The collapse will bring hyperinflation and every fiat currency in the world will collapse.

The economy was hit hard by the fall in oil prices. As an example these falling prices have already affected daily life for Venezuelans and everything has become an uphill battle. Now that the oil bubble has burst, nations that depend on oil sales are going to face great economic problems in their country.

maxresdefault-1In the U.S. we cannot keep living like we have twice the income that we really have. The Federal Reserve created trillions of dollars to buy most of our national debt and mortgage debt with money that they created on the spot, and nobody will buy this mortgage debt in the future. It is a Ponzi scheme. Our national debt will have doubled in just the time Obama was in office.

The more there is a risk of a default in currency devaluation, the more interest rates are going to rise. We may be able to pay $20 trillion dollars of debt at 3 percent interest with some pain, but at 6 percent interest or above for any extended period of time it will cause a total economic collapse.

Things got so bad that since 2008 most banks will not lend any more on commercial ventures. Instead, they are either still gambling on markets or they are sitting on their money. Nobody wants to lend money for economic development because they are afraid that they will never get paid back. Many other businesses that could expand will not do so because they are afraid of higher costs in the future through government taxation and regulation. That is one reason people are dropping out of the workforce. There are fewer businesses in America in 2016 than there were before the 2008 crash.

There is no easy answer to the world debt problems because many people and nations around the world have been living beyond their means for decades. They have been amassing debt and entitlements that cannot be sustained. With their aging populations, there is no next generation being raised that will have the numbers needed to pay the bills. The credit line of many nations are maxed out, and the young cannot support the entitlements that the old were promised.

As if the spending beyond our means for decades wasn’t enough, many banks are still gambling with your investments. They take your money and use it as security to leverage investments worth thirty to a hundred times that amount. In 2008 some bubbles burst, and many that were gambling lost. Some financial institutions got bailed out, but most did not learn their lesson. It is even worse today than it was in 2008. These world banksters are still gambling with savers’ money.

Some big corporations and financial institutions could not pay their debts because of the severe downturn in 2008, so they either went bankrupt or were declared too-big-to-fail by our government, and the government bailed them out by Americans taking on more future debt.

Another reason for the lack of quality jobs is that the government cannot institute a policy to buy American-made products because they risk a trade war with other nations in the global economy who are also living beyond their means. The trade war is probably coming anyway because unemployed people of nations will demand that their government do something to protect their jobs.  All government can do to keep jobs at home is to allow protectionism.

Our future appears to be deflation, depression, or hyperinflationary depression which is bound to come as a result of overprinting the currency. This will allow the rise of populist demigods who will convince people that they know who is to blame and that they have all the answers. In other words, we are now repeating the same mistakes of the 30’s that led to the nationalist socialistic movements and the start of World War II. It will not be much different this time around, except that the stakes for the world will be much higher.

The same mistakes in housing in the US are being made all over again. The recent climb in values will probably be short-lived as this country goes back into the next phase of this depression. Foreign investment speculators who think we are in recovery are once again buying real estate and driving up prices. The percent of Americans owning their own home is actually still falling and has fallen to 1990’s ownership levels. Family income in the United States and hours worked is still falling. The recovery is most likely phony, and what recovery there seems to be is really built on the Federal Reserve creating more money and more government borrowing. The recovery is going to speculators in the top one percent.

But you can protect yourself from this entire calamity by purchasing gold and silver, or getting our inside trader stock tips or purchasing our newsletters. You might want to stock up on your stored food supply as well.

Conclusion

These thoughts are the case that is represented in most of the conspiracy videos, websites, and blog posts. These people prey on people who know little about economics. I debunked most of this rhetoric in my book “The Truth About The Coming Global Currency Reset.” Most of the panic in this analysis is mixed with half-truths in an effort to make it more believable. If you know anything about real economics then you can debunk most of what is being said here. So in an effort to ease any fear or worry, I will explain why this is a load of sewage. This information can be found in my book in greater detail.

Let’s Debunk This Crap

First and foremost, if the dollar were to collapse as these guys claim, why would they know the exact date on which it is going to happen? Some conspiracy sites say the date was chosen by the Illuminati or the Rothschilds. (Give me a break) I decided to do some research and see if I can find a reason for that date.

The Federal Reserve is going to issue the standard Federal Open Market Committee report on September 21st, just 6 days shy of the predicted date. Aside from that nothing unusual is going on with The Federal Reserve.

http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm

Southwest oil independents have scheduled a rally on September 27 against OPEC oil imports.

http://www.freerepublic.com/focus/f-chat/3466296/posts

There is some speculation regarding interest rates in September.

http://www.forexnews.com/blog/2016/09/05/september-important-dates-capital-markets/

In the end, I could not find any concrete evidence as to why conspiracy nuts chose September 27th to be the end of the dollar. This date was picked months ago! As I stated earlier, if this were to actually happen to the dollar then no one would know the exact date that this event would transpire. I believe this is part of a marketing ploy that these end of the world doomsday merchants have cooked up through the use of their nut job guru network.

This creates urgency to buy more gold and silver. You feel a sense of urgency to store more food. You begin to prepare for the end of the world.

The same thing happens in the dinar world all the time. If you think the revalue is going to happen on next Monday and today is Thursday, then you are going to place an order out of urgency. You are going to buy more dinar or put dinar on reserve. This is exactly why a revalue is predicted to happen every Monday

There appears to be two YouTube accounts which are the source of this erroneous theory. They are “Money News” and “Economic News”. From there it spread everywhere else. I started watching one of the videos, “Why The US Dollar Will Collapse on 27 September 2016 ?”.  (over 700,000 views – see below)

This video is ridiculous. He starts off talking about a coming calamity, and then he says “will you take the proper steps to protect your family?” I am sure he is going to sell you the proper steps you need to take. There are many advertisements throughout this video, and with over 700,000 views some money is being made using fear tactics. Within two minutes of this video he mentions the National Inflation Association, which seems to have been debunked by Peter Schiff as a fake group with an agenda. (Check out the video below.)

Check out the National Inflation Association below

http://inflation.us/

peter-schiffI think it is ironic that Peter Schiff is also one of the economists that they claim supports their theory. The truth is this theory only attaches itself to small portions of what Mr. Schiff says. The rest is all made up. Most laymen don’t understand reserve currencies or money mechanics, so these things sound plausible when they are presented through outrageous storytelling. These YouTube videos have disabled their comment section and suspended their voting as if they are afraid of being debunked. By now major warning lights should come on.

Peter Schiff has a reputable background and while I don’t agree with everything he says, He makes valid points on the nation’s debt. He points to logical problems that face the country. It is too bad that the Global Currency Reset crowd takes his comments out of context and applies it to their own ill-gotten gain. Peter talks about a collapse in the economy if these problems are not addressed. These guys take some of his facts and change it to a total collapse of the dollar and a revalue or collapse of every currency around the world. They seem to latch onto Mr. Schiff in an effort to gain some of his fan base.

Furthermore, these GCR gurus have been predicting the collapse of the dollar since the beginning of the millennium. Recently Lindsey Williams predicted the dollar will collapse under a global currency reset in 2012. It was predicted to happen again in 2013. Then the dollar was going to collapse in the first quarter of 2014, and finally, the dollar was going to collapse at the end of the second quarter of 2014. That is when the dollar took off like a rocket. 2014 was a great year for the dollar and 2015 was the best year the dollar seen since 2005.

http://www.reuters.com/article/markets-forex-idUSL3N0UF0EA20141231

http://www.marketwatch.com/story/dollar-index-on-track-for-best-year-since-2005-2014-12-31

the-secret-cause-of-dollar-colla-480x360The last time the dollar crash was predicted was May 28th, 2016. Before that, the last prediction was in April of 2016. So as you can see, these Global Currency Reset guys have a long track record of being wrong. They have been wrong in 100 percent of their predictions. I predict that they are going to be wrong once again on September 27th. There is not going to be a major crash of the world currencies on that date! Let’s wait and see who is right!

Get Your Facts Straight!

These GCR guys mix a little fact with fiction to create an illusion in order to sell their products. The valid points make the invalid ones seem more plausible. This is no different from what the dinar gurus do. The only reason why it is addressed on this website is because dinar gurus have tried to link the GCR to the revalue of the Iraqi dinar. Let’s cover a few of these so-called facts.

First of all, there was never an oil bubble as these loons proclaim. Oil prices are driven by supply and demand. The more oil there is the less it cost. This is economics 101. The reason why oil prices are cheap is because Saudi Arabia flooded the market in an effort to shut down American fracking. The increase in oil production in America has led the Saudi’s to take this strategic approach. Russia also supplies the world with oil. This is how their economy recovered from the crash of the ruble in the 90’s. Canada is also looking for a better way to bring more of its oil to global markets. This is what the keystone pipeline was really all about. Now Iran is able to bring their oil to global markets as more sanctions are about to be lifted. There are many other oil-producing nations as well. So as you can see, oil is not likely to go up with major price increases anytime soon as long as new supplies enter the market and nations are competing around the world for oil sales. This is not necessarily a bad thing for the U.S.

It is true that Venezuelan citizens are suffering right now, but this is primarily due to the fact that Hugo Chavez took over the country and instituted communism. He appointed businessman Roberto Mandini president of the state-run oil company Petroleos de Venezuela. Chavez also set out to rewrite the Venezuelan constitution. He kicked out oil companies while keeping much of their equipment. He gutted most of the private sector. His actions had an effect on the country’s economy. While falling oil prices contributed to the problems that all Venezuelans now face, the root cause was communism and a gutting of private infrastructure.

https://en.wikipedia.org/wiki/Hugo_Ch%C3%A1vez

The problem with these GCR guys is anytime the price of some commodity drops they claim the commodity was really in a bubble, and the bubble collapsed because of debt or some other obscure reason. Supply and demand or natural laws regarding economics never seem to apply. From what I could gather, they believe several bubbles collapsed in 2008.

The dollar is actually a lot stronger than these arm-chair economists know. Ecuador, Zimbabwe, and the British Virgin Islands are just a few examples of countries that don’t have their own currency. They use the dollar exclusively for commerce among their citizens. There are many other nations that circulate the dollar along with their own currency because the dollar provides stability. In addition to this, the dollar can be found in reserves in most nations around the world. These reserves serve to back other currencies.

http://www.investopedia.com/articles/forex/040915/countries-use-us-dollar.asp

Let’s not forget about the petrodollar! In august of 1971, Nixon removed us from Bretton Woods. This is known as the Nixon Shock. In 1973 agreements were reached with Saudi Arabia and later OPEC. This agreement was that these nations will sell their oil only using the U.S. dollar. In returned the United States Government promised to make these oil-producing countries rich, and the U.S. would provide these nations with military protection if they were ever invaded. This is why we went to war with Iraq after they invaded Kuwait. Kuwait sells oil in dollars, and we had the responsibility to provide military protection due to the petrodollar system.

Selling oil in U.S. Dollars has been a source of strength for the dollar. While Saudi Arabia complains about fracking and at times has threatened to sell oil using another currency, the truth is this is highly unlikely because it will leave the Saudi government without military protection and they will be defenseless. Iran will more than likely engage with the Saudi government if this event ever took place. So as long as there is a demand for dollars in other countries because of oil sales, it is highly unlikely that the dollar will collapse anytime soon!

The Truth is there are a lot of problems with the Euro. We just witnessed the Brexit event. Spain, Ireland, and Greece, are just a few of the countries that have been a drain on the Euro. As a result, people are running away from the Euro and they are running to the dollar.  As the Euro weakens the dollar grows stronger.

http://demonocracy.info/infographics/eu/debt_piigs/debt_piigs.html

http://demonocracy.info/infographics/eu/cyprus_crisis/cyprus_crisis.html

In spite of all the problems with America’s debt, one of the advantages that the dollar has is that there really is not another currency out there that can replace it anytime soon. Most conspiracy nuts will point to the Chinese Yuan, but as we will soon see this won’t be an option in the near future.

America has been exporting jobs to China ever since Bill Clinton lobbied to make China a member of the World Trade Organization. Obama loaned General Motors 80 billion dollars. They used that money to build eleven new factories in China. They even made their research and development center in China. Many U.S. businesses have relocated to China.

China has benefited by keeping their currency values low. This has caused their exports to grow. If their currency becomes a major reserve currency that replaces the dollar then that will place more value on the Yuan. As a result, their exports will fall. China is not going to put themselves in this position anytime soon. While America has around 12 trillion in their M2 China has 130 trillion Yuan. Talk about printing money! They back their currency with approximately 1,000 tonnes of gold and U.S. dollars, so it is extremely unlikely that China will give up their export advantage in order for the Yuan to become a reserve currency.

hqdefaultMany of these conspiracy theorist claim that the dollar is a fiat currency. They say it backs most other currencies making them all fiat as well. The next claim is that the Federal Reserve is printing too much money, and we will see hyperinflation as more and more of this currency enters the economy. These statements alone should show you how out of touch these guys are with the actual facts!

The claim that the dollar is a fiat currency is made in an effort to imply that the dollar does not have any assets to back it. It is merely worthless paper. Nothing could be further from the truth! Currently, there is a little over 166,000 tonnes of gold in the world today. Out of that only 17.4 percent is used as an asset to back currency. Out of that number, the United States currently has a little over 8,133 tonnes of gold for the express purpose of currency backing. THIS IS AN ASSET BACKED CURRENCY! The United States has more gold than any other nation. The U.S. also has other assets that back their currency. Second in line is Germany with 3,396.3 tonnes of gold, followed by the IMF with 2,814 tonnes. These numbers can be verified by clicking on the links below.

https://en.wikipedia.org/wiki/Gold_reserve

https://www.gold.org/research/latest-world-official-gold-reserves

http://demonocracy.info/infographics/world/gold/gold.html

The Federal Reserve does not own one printing press with the express purpose of printing money. Any physical money that is made is done by the United States Treasury per the constitution! It is the responsibility of the United States Treasury to mint coins and print money! The Federal Reserve distributes the money the U.S. Treasury makes.

We currently have about 12 trillion in our M2 money supply. All of this money does not sit in America, and because of this it does not have a major impact on local inflation. About two-thirds of our currency is exported and used around the world. It sits in central banks and it is used as a reserve. It is used to buy oil and governments around the world conduct commerce with it. It is used by citizens of governments all over the world to conduct commerce. This notion that the Federal Reserve prints money is totally bogus.

https://en.wikipedia.org/wiki/United_States_Department_of_the_Treasury

https://www.newyorkfed.org/aboutthefed/fedpoint/fed01.html

http://moneyfactory.gov/

https://www.treasury.gov/services/Pages/coins-currency.aspx

Final Thoughts

There is much more that can be said to debunk all the claims this conspiracy group is making, but I think by now you are beginning to get the point. I could go on for days debunking their propaganda. These Global Currency Reset guys all have an agenda. It seems to be this, buy our products or you will die and we are going to scare you to death with junk economics until you get the message! It is totally idiotic beyond belief to arbitrarily pick a date and then proclaim that to be the time when the dollar and the world economy will come crashing down all around us! It serves a purpose. It creates urgency.

The United States Dollar will not crash on September 27th, 2016! Any proclamation that it will is pure fantasy, displayed by people who are writing fiction and presenting it as fact for a profit!

 

 

 

 

Global Currency Reset part 2

The wisdom of the prudent is to give thought to their ways, but the folly of fools is deception.

Proverbs 14:8 NIV

In the last post we talked about the origins of the Global Currency Reset. We talked about and exposed NESARA for the conspiracy theory that is. We dealt with some of the many definitions to the terms Global Currency Reset or GCR. The article was getting kind of long so I decided to stop at a certain point and continue later with more information in a future article. I am jumping in the middle of a thought process here and a lot of information is already covered in the previous post. So for that reason I strongly suggest that you read The Global Currency Reset Part 1 before you read this article. Reading part 2 only is like going to a movie with a detailed plot and coming in a little after the middle.

China

The IMF plays a major role in one of the definitions of the GCR. According to Lyndsey Williams the IMF is going to force all nations to revalue their currency by the end of March and the values will be based on other things. The dollar will be worth a lot less as a result. See Dinar Update 3

Not only is this absurd it is not even practical. As I said before people only attribute the effects of over printing currency to America. They ignore the effects it has on all other nations that do the same thing as if America is the only one that is going to suffer for this practice and all other nations are immune.

While it is true that America has 11 trillion dollars. China printed over 110 trillion Yuan!

http://www.tradingeconomics.com/china/money-supply-m2

That is 10 times the amount of America’s dollar

“Yuan’s Real Exchange Rate Undervalued 5%-10%, IMF Report Says”

http://www.bloomberg.com/news/2013-08-01/china-s-real-exchange-rate-undervalued-5-10-imf-report-says.html

The reason why China does this is due to the fact that their economy depends on exports. If china raises their currencies value in a GCR event then that would translate to higher costs to manufacture goods. This would decrease exports! By the way this applies to all the BRICS nations as well as it would apply to every other country. You are not going to get everyone to comply. There will be some defectors and that will cause everyone to ignore arbitrary IMF imposed GCR rates.

In the past China has always undervalued their currency. This acted as a 30 to 40 cent tariff on all goods coming into their country. This allowed the exports to increase and at the same time allowed them to control imports. Countries with over printed and inflated currencies have a greater chance to export goods because their currency values are low and that keeps manufacturing costs down. This may be one of the reasons why they inflate their currency in the first place.

These nations are not going to surrender the sovereignty of their currency value to the IMF. The IMF won’t be able to force China to raise it’s currency’s value especially based on some fictitious GCR event. And in any case all those countries would need to do to lower their value once again is to print even more currency. Is the IMF going to tell each nation how much currency it can print too? This notion is ridiculous to say the least.

As far as revalues go china serves as a great example. Let me paraphrase and bring up some things Jack pointed out

“Over the past decade, China has “Revalued” the Yuan by around 35% vs the dollar and in total. This was spread out across multiple steps. This is what real life revalues look like. A couple of percentage points here, and another couple of percentage points there a few years later. The most recent being 5% from 2011-2013. And even today, even with China’s deliberate under-pegging aberration, you’re still only talking about a 5-10 percent undervalued repricing . About 15 percent is the absolute highest estimate which is nothing even remotely close to a 100,000% REVALUE! The Guru’s false pumping of the dinar by trying to pretend the Dinar “MUST DESERVE” a 1980′s exchange rate and ignoring the fact its money supply is now 4,000 times higher than what it had in the 1980′s is ludicrous. This is the prime reason its rate fell in the first place!

However as long as China is a net exporter, they simply won’t want a massively stronger currency as it will hurt Chinese businesses by making it relatively more expensive for non-Chinese to import goods from China in all future trade. Having a stronger currency is no good if it kills off export growth!”

It is also true that china is experiencing some problems because of lack of environmental controls. China has cancer villages and many other environmental issues to overcome. I have also written an extensive report on China and their current geo political problems which can be found on my other blog.

http://bvawe.wordpress.com/2013/11/24/the-real-battle-part-7/

https://maps.google.com/maps/ms?msa=0&msid=207156850501906471306.0004da7c080a323c331b3&dg=feature

This is why so many nations are mad at the Federal Government for Quantitative Easing. Because this lowers the value of the U.S.dollar and it serves to level the playing field for exports. It affects the exports for every nation that has a low currency value. Imagine what would happen to America’s economy if the U.S. dollar suddenly dropped significantly and hyperinflation came. The amount of Imports would suddenly decrease as their prices would soar. Now how would that effect china if all currency was reset and China no longer has it’s edge and the U.S. had a significantly lower value attached to their currency?

U.S. interest rates have been almost zero since the economic crisis began back in 2008. Gold and silver will react negatively to the news of a possible imminent increase in interest rates. This is because any increase in interest rates will strengthen the dollar. Q.E. is also an effort to boost the economy. When the unemployment rates drop and the U.S. economy finally begins to really recover then I expect the Federal Reserve to ease up on Q.E., and I expect interest rates to rise and the dollar to become stronger as a result. When this happens it should affect the price of gold and silver, but the people who sell precious metals and push this GCR won’t tell you that.

Iraq

Here is Iraq’s current money supply

Iraq money outside of the banks = 34 Trillion

Iraq M0 = 70.9tn Dinar

Iraq M1 = 71.3tn Dinar

Iraq M2 = 85 Trillion

http://www.tradingeconomics.com/iraq/money-supply-m0

The reason guru’s won’t repost this or even talk about it is pretty obvious. Iraq still has over 71tn physical banknotes alone and there is little difference between M0 and M1 due to the primitive nature of Iraq’s banking system.

Their currency is so inflated that there is no possible way for them to revalue to even a penny! No GCR event can overlook this. If there was a GCR event and the IMF raised the value of the dinar as people claimed then it won’t be long until hyper-inflation would collapse the currency entirely due to the amount in circulation!

In addition to this Iraq announce that their plan is one of redenomination. Here are some of the designs they have considered for their new currency.

New Currency Design

New Currency Design

oh wait……My Mistake, Those are really Sam I Am bucks…They are offered out free of charge so that Dinar Gurus can buy a clue! Here is the new dinar.

dinar

Oh wait that is not it either..as the youth would say My Bad! Here is the New Dinar

Dinar 2

Now this is not the new dinar from the CBI that is the ISIS dinar. Check the links below.

http://www.iraqinews.com/baghdad-politics/abu-risha-isis-issue-new-currency-in-anbar/#axzz2uAggyNdV

http://pamelageller.com/2014/02/al-qaeda-iraq-printing-currency-featuring-photo-osama.html/

OK here is the New Dinar

4472

This is being shown as the new dinar. Actually this is the dinar that was in circulation back when Ahmed Hassan al-Bakr was president. He is the guy that was in charge before Saddam took over.

http://en.wikipedia.org/wiki/Ahmed_Hassan_al-Bakr

look at the one dollar bill. The note on the bottom left. Now look at this eBay auction which is a dinar note from 1973. It is the exact same note.

http://www.ebay.com/itm/1-DINAR-Banknote-IRAQ-1973-Al-Mustansiriya-Madrasa-Refinery-Pick-63-UNC-/380404193527

This has been shown and displayed as new dinar on a few sites. This is just a small example of the deception that is out there. Iraq does have a plan of redenomination. I don’t think anyone has seen the new notes yet. I do believe that they are already printed, but that is only my opinion.

Religious Point of View

There are those who present the GCR as biblical prophecy. It is believed that this event that will move everyone closer to the mark of the beast and a one world economy that the Anti-Christ will rule. Christians who know little about biblical prophecy have fallen for this. This is one of the main reasons this group invested in the dinar. Who can argue with biblical prophecy?

First the mythical GCR has nothing to do with biblical prophecy and that notion is really false doctrine in that regards. I have studied the bible for many years and I love to research and look at biblical prophecy. This GCR is total Bunk when it comes to actual bible prophecy! It has nothing to do with it. The mark of the beast is totally different and it is issued during the time of the Anti-Christ by the false prophet. Even though a lot of dinar gurus are false prophets those are not the ones the bible is speaking of.

Buzz Words

Most people can’t really explain the mechanics of a GCR beyond using buzz words like Global Reset, Fiat Currency, Fractional Reserve Banking, and Linear-Thinking. These are just some of the buzz words I have seen on other sites. Let me provide some definitions to what these buzz words actually mean

Fiat Currency: Fiat is the Latin word for “it shall be”. Most currencies were based on physical commodities such as gold or silver at one time, but fiat money is based solely on faith. Fiat currency is money that a government has declared to be legal tender, but the fiat currency is not backed by a physical commodity and it has no intrinsic value. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of or the commodity it represents.

The U.S. dollar is considered a fiat currency because it is backed by nothing. The Iraqi dinar is not considered to be fiat because it has reserves. BUT the sick joke is 98 percent of what backs the dinar is the FIAT U.S. DOLLAR! And this gives the dinar value how?…….So how will the GCR regulate a currency that gets it’s value from the U.S. dollar? If the dollar falls then the dinar falls too! So does the Whan and many other currencies around the world. The dollar won’t fall while every inflated currency backed by the dollar rises! This is absurd!

“The Congress has specified that Federal Reserve Banks must hold collateral equal in value to the Federal Reserve notes that the Federal Reserve Bank puts in to circulation. This collateral is chiefly held in the form of U.S. Treasury, federal agency, and government-sponsored enterprise securities.”

This is how gold breaks down. There is 166,500 tons of gold in the world. 18 percent of that or 32,000 tons is held by Central Banks for reserve. Out of that the U.S. has 8,133.5 tons of gold which makes 72 percent of the reserves held by the U.S.

The Federal Reserve Bank of New York holds 540,000 Gold bars alone. Not bad for a fiat currency.

http://demonocracy.info/infographics/world/gold/gold.html

http://en.wikipedia.org/wiki/Gold_reserves#Officially_reported_gold_holdings

http://www.federalreserve.gov/faqs/currency_12770.htm

Now compare that to the dinar that has a grand total of just 2 percent gold in their reserves. The rest of their reserves are U.S. dollars

This is not even taking into account the petro dollar system which the U.S. put into play in 1973. This petro dollar system is one reason why the dollar has out lived the fiat currency life span. For more information on the petro-dollar system look at this article I wrote 2 years ago explaining it in detail. Watch the videos too

http://bvawe.wordpress.com/2011/07/23/the-role-that-oil-plays/

Linear-Thinking: If you are accused of “Linear Thinking” then you don’t understand the Global Currency Reset. What this really means is you pay too much attention to printed currency supplies and that has you caught up from seeing the truth.

If you are not a Linear Thinker then you know that currency supplies don’t matter and nations can have as much of it as they want. It won’t make any difference. Only the U.S.A. will be penalized for having too much currency because they are evil and bad………. If you can’t see that then you are a “Linear Thinker.”

What a bunch of B.S.!!! Currency supplies do matter and too much currency destroys the value end of story! I guess I am just a linear thinker after all.

Fractional Reserve Banking: FRB or Fractional Reserve Banking is a process that expands the money supply. It is said on some GCR sites that central banks will use this process to pay out the new currency values. The only problem with this is the fact that Fractional Reserve Banking is a process that is only used by the public banking system. Private central banks don’t use Fractional Reserve Banking.

FRB is a process that expands the money by monetizing the debt. In other words, when people participate in the loan process that debt is monetized. New money is created thus expanding the currency supply. Central banks don’t do this, public banks do. The CBI is not going to go into debt using a method of debt monetization so it can payout a new value that is adjusted to their currency because it is imposed by the IMF in a fictional GCR event! That shows you how clueless some of these guys are about economics.

The IMF

Christine Lagarde is Managing Director of the International Monetary Fund. Some parts of the GCR conspiracy name her as the one responsible for the upcoming GCR event. They quote her twitter page and watch her for clues.

LaGarde’s Exact Tweet : “We need a reset in the way the economy grows around the world” This has somehow morphed into All currencies are going to reset.

All she is really talking about was resetting economies. The Goal here is to boost economic growth to pre-2007 levels! BEFORE THE 2008 MELTDOWN! These factors include reducing unemployment and inflation. There is some banking reform through Basel III which is really all about increasing balance sheets for banks. It has absolutely nothing to do with currency values! It is not a GCR guru-style “let’s pretend the world’s most inflated currencies are not really inflated and new values will be assigned!

People are just twisting the whole thing wildly out of context to mean overnight revalues of currencies and destruction of the dollar! All most people are really doing is confusing economy with currency. They are not interchangeable. It’s possible to have a strong currency and weak economy. Greece, Portugal, Fiji, serve as examples. It is also possible to have a weak currency and strong economy South Korea, China, and Japan, serve as examples too.

A few weeks back the BBC released an article about the dinar. They actually quoted me in that article. They also quoted the IMF. According to the IMF the Dinar investment was fraudulent. By the way this is a Direct Quote from the IMF. read the Article.

http://www.bbc.co.uk/news/blogs-trending-26187471

Conclusion

What do people mean when they say global currency reset? This in itself is a buzz phrase thrown around as though it has some sort of validity. The truth is it can be a complicated subject. Part of the reason for this is because there are so many different meanings attached to it.

The United States dollar is the most widely held currency in the Allocated Reserves today. A report released by the United Nations Conference on Trade and Development in 2010, called for abandoning the U.S. dollar as the single major reserve currency. Some have proposed the use of the International Monetary Fund’s (IMF) special drawing rights (SDRs) as a reserve.There is some truth to the move to a multi-polar financial reserve world.

This does not mean that the USA’s reserve status is going to collapse to zero as if the USD got replaced by say the IMF Special Drawing Rights. The US dollar will still make up a large chunk of reserves simply out of economic necessity for trade.Some people are wildly over-reacting to a trend for more multi-national reserves somehow meaning total collapse of the USA’s economy and a revalue of the worlds most inflated currencies.

The Global Currency Reset does not mean that the entire U.S. economy will collapse and the dollar will become worthless while the overprinted dinar, dong, and others become the new standard! That to me is the most absurd definition of the GCR out there!