Economic pressures

[Danny B]

flat broke

America has a debt problem. The IMF has a solution. "The IMF is saying that, to close this fiscal gap [by taxation] would require an immediate and permanent doubling of our personal income taxes, our corporate taxes and all other federal taxes."
"America's fiscal gap is enormous - so massive that closing it appears impossible without immediate and radical reforms to its health care, tax and Social Security systems - as well as military and other discretionary spending cuts."
OK, thats cool. We'll just double the taxes and get rid of SS, health care and the military. It has recently been proved AGAIN that austerity kills the economy. We'll completely demolish the economy so that the bankers don't miss a payment.
The scary actual U.S. government debt - The Globe and Mail

Not surprisingly, the weaker European countries are falling behind. France is about to join the PIGS.
The Next Financial Crisis Might Be Only Weeks Away | Peak Prosperity

The Global Economy Suffers From Hypothermia | Finance

Various European countries have defaulted over the years. The bankers took away the printing press so this couldn't happen again. The Euro currency is not under the control of any one country. In effect, they took away the safety valve.
This brings to mind a story from the Darwin Awards. "A replacement fuse was not available, but Wallis noticed that the .22 caliber bullet from his pistol fit perfectly into the fuse box"
The original fuse had overheated and blown. You know the rest of the story.

[Danny B]

Syria as a critical energy player

World events can be extremely confusing if one is not aware of competing pressures. The British bankers are in a mad stampede to attack Syria but, the British people want to think it out,,, or completely abstain. Obummer is in a giant rush,,, why?
"However, please realize that the British Parliament is not the British Crown, or the City of London, and make no mistake about it, the British Crown very badly wants this war in the name and the furtherance of central banking goals"
The Chessboard of World War III | Dave Hodges – The Common Sense Show

This long article shows the very tight connection between banking and oil.
The Four Horsemen Behind The Oil Wars | LEFT HOOK by Dean Henderson

When it comes to carbon energy, coal is falling out of favor. Saudi oil is running out. Natural Gas is now the favored fuel. Saudi pumps in water to help in the recovery of oil. This damages an oil field. Saudi is now pumping 80% water from their oil wells.
Meanwhile, there have been huge discoveries of natural gas. Gazprom is at the center of a consortium of producers that intend to supply LOTS of gas to Europe. This has developed into a war of pipelines. MAJOR pipelines pass through Syria. If anglo-american bankers wish to preserve the petro-dollar, they must stop Russia and Iran from supplying gas to Europe. Cutting the pipelines in Syria would do the job nicely.
The dollar is collapsing fast and there is an urgent need to block Irani-Russian gas.

"Syria is the last line of defence for the USDollar and the exalted position of OPEC. "
Jim Willie: Syria, Pipeline Politics, OPEC & the USDollar | SilverDoctors.com

Also, China plays a part in this. American sent $ trillions to China. Banksters are trying to block non-OPEC petroleum development. China is using it's $ trillions to fund non-OPEC carbon projects. Just as the Straits of Hormuz are strategic for oil tankers, Syria is strategic for pipelines.
Obummer's campaign was paid for by bankers. There is suspicion that they will expose and impeach him if he can't come up with a pretense for war.
The military assets are in place and I'm sure that the bankers want the war to start just on the accumulated momentum.

[Danny B]

oil and war

It seems that where ever you find oil, you find war. The Golan Heights is disputed territory that belongs to Syria but is occupied.
http://www.jewishvirtuallibrary.org/.../golanmap1.gif
This Syrian territory apparently has oil. Dick Cheney has been given exclusive rights to explore for oil.
Israel Grants Golan Heights Oil License - Business Insider
Reportedly, the israelis gave him this concession, not the Syrians.

[Danny B]

Bernanke's failed program

The U.S. constitution demands that GOV only coin money of gold or silver. America had a very healthy economy but, the bankers were not in control. In 1913, they managed to get a central bank and an income tax. It is true that income tax was never legally ratified by 4 states that were claimed as backers.

The Law That Never Was: The Fraud of Income & Social Security Tax — Home

But, the Pres did sign the FED law.

The new FED law allowed for lots of money creation. The banks could originate as much credit as they wanted. Much of this is/was credit but, the money supply includes credit. Tons of new money sloshing around in the system caused a lot of problems and the economy crashed just 16 years later. The senate investigations that lead to the creation of the Glass -Steagall act put the blame on "dark pools of liquidity". These were huge currency/credit funds that moved to where ever there was a profit to be made.

Fast-forward to today and these "dark pools of liquidity" have been reborn as hedge funds. They move enormous amounts of money to wherever there is profit to be "earned".

Benjamin Shalom Bernanke loudly proclaimed from his ivory tower at Princeton that he could have stopped/avoided the Great Depression I by simply providing MORE liquidity. In spite of earning a chair at Princeton, he completely missed the original problem that caused the Great Depression I. It wasn't a shortage of liquidity that caused the crash. It was the MOVEMENT of huge pools of liquidity that caused the shortage of liquidity.

When Big, Bad, Bald, Ben Bernanke started up the printing presses, he envisioned providing necessary liquidity to the banks,,, his favorite people. He printed a $ trillion here and a $ trillion there. Janet Yellen from the FED admitted that the FED had NO IDEA of what was happening with all the exotic instruments that the banks had created. The banks had created derivatives and other instruments that had a notional value of roughly $ 1.2 quadrillion.

While the FED had some control of what the banks did as far as originating credit, the FED had no control over the hedge funds. BBBB Bernanke could create liquidity as he had bragged. BBBB Bernanke could not control how it moved. His money creation had created price inflation and the hedge funds had to invest to stay ahead of inflation loses. He drove interest rates down to zero and the hedge funds could not find returns.

This drove them into junk bonds and emerging markets.

The longer that Bernanke maintained low interest, the more the hot-money flowed searching for return. 18 months ago, China and Brazil complained about the FED-created hot money flowing into their economies. Just recently, they complained about the hot-money flowing OUT of their economies. The hot money is flowing OUT of China and Asia and crashing their respective currencies.

America is experiencing inflows of hot money as it flows out of emerging markets. This may seem like a good thing because it boosts our markets. The downside is the dreaded derivatives. American banks hold lots of derivatives on foreign debt. The 4 biggest American banks hold about 98% of the derivatives. As the hot money flows out, foreign interest rates rise and U.S. banks must pay out on the interest rate swaps.

The notional value of all interest rate swaps is $ 441 trillion.

In general, investors are shunning bank stocks so, the hot money inflows will not help the banks. The whole system is fairly fragile and the movement of huge chunks of money will cause the same problems that it did in the 20s.

European banks are at their lowest level of loan-origination in many years. The existing hot money has nowhere to go so, they aren't making any new hot money.

Interest-bearing debt demands growth of the money supply to service interest-debt.

Existing debt is defaulting so, nobody wants to loan anything.

At one time, the banks did the bulk of credit/money origination. Since they have stopped, the Central bankers have to make up the difference. The banks traditionally created money for investment. Since the economy is shrinking, the central bank is creating faux money for consumption, NOT investment.

The debt ceiling will arrive in 8 weeks.

[Danny B]

Great Britain

I already picked on France so, out of fairness, I should pick on Great Britain. The GB debt is worse that the debt in Portugal. It is only exceeded by the debt in Ireland and Japan. The empire has disolved and the foreign remittance is gone. Part of this is attributable to old-age support.
"Men aged 70 and above could claim between 2 and 5 shillings per week from the government.
But for all the positive press and good feeling, the government wasn’t really making that big a financial commitment – because back then the average working man could only expect to live to 48 years of age."

"That’s the equivalent of offering someone a pension today… but only when they reach the ripe old age of 115. So the idea of rewarding anyone who made it to 70 with a hand-out from the public purse seemed perfectly fair. And more importantly for the government, cheap."
" average life expectancy has grown from 48 to 80 – a 67% increase. But the age at which we retire has remained essentially the same. This has resulted in an estimated £5 trillion worth of pension promises the state has made to its citizens – roughly five times what our entire economy is worth"

THE PATRIOT. : The End Of Great Britain.
There is no easy way out of this. The price of energy is already too high for many people.
24,000 'died because of cold homes' last winter: Fears grow figure could be higher this year because of spiralling bills | Mail Online

[Danny B]

Breakdown of complex systems

Capitalism has no mechanism to support those who are not directly producing.
Socialism is not a production system so, it can not apportion support. It can only take it from producers and redistribute it. This has never worked out.
All societies survive based on their energy consumption,,, energies of all types.
In the "Collapse of Complex Societies" Joseph Tainter writes; "as a society grows in a linear fashion, it's energy needs grow exponentially."
Collapse of Complex Societies by Dr. Joseph Tainter (1 of 7) - YouTube

Frank Chodorov wrote an interesting book, "The Rise and Fall of Society",
http://mises.org/books/society.pdf

Several years ago, a computer expert named Roberto Vaca wrote a book about the breakdown of "super systems".
http://www.printandread.com/download...arkagefree.pdf

Recently, John Casti wrote about "X events"
http://www.amazon.co.uk/X-Events-Col.../dp/0062088297

His work is similar to the work of Vaca;
"ever more advanced technology that is developing at an exponential rate. Yet it is a fact of mathematical life that higher and higher levels of complexity lead to a system that's ever more fragile and susceptible to sudden, spectacular collapse."

Tainter writes that, as a society collapses, it sheds layer of complexity. We already see this in the breakdown of the safety net. The health industry is failing. Napolitano said that the grid WILL go down.
Activist Post: Big Sis Says Cyber Attack WILL Bring Down Power Grid: ‘When Not If’
Other systems such as food and transportation are weakening. The banking system is ready to blow.

If/when the industrial economy can no longer "cater" to a big enough percentage of people, those people will try to revert to an agrarian or hunter-gatherer existence. This is already happening in Greece, and Poland,, soon coming to Romania and others. America has 100 million not in the labor force. Worldwide, there are many millions of young who are not able to enter the workforce.

Central bankers worldwide inflated their currencies hoping that a trickle down would provide jobs. The resulting price inflation caused an effective wage redution. This resulted in even less purchasing power and a weaker economy. The economy may "recover" but, an ever-greater % will be jobless. This is a recipe for revolution.

[Danny B]

China and asymetric warfare

"Napolitano said that the power grid will go down.
Activist Post: Big Sis Says Cyber Attack WILL Bring Down Power Grid: ‘When Not If’
China has proved very well that they can launch a missile at us from close range. 10 China Launches Missile Off Coast Of California - YouTube
In this vid of an EMP attack, a missile is launched from a plain-jane freighter.
EMP: A Terrorist's Dream - YouTube

Asia Times writes; " and the naval show of strength of seven aircraft carrier battle groups converging off the China coast in August 2004. All these aggressive moves by superpower America pushed China to embrace its former bitter rival, Russia. " The article goes on to illustrate why America would lose any battle with Russia and China.
Asia Times Online :: China News - PART 2: The assassin's mace
The article lays it ALL out as far as battle plans and strategies. Sun Tzu would be proud.

U.S. GOV claims that China has super EMP weapons. China Developing Super Electromagnet Pulse Bomb To Use In War Against U.S. - Jersey City Civil Rights | Examiner.com
While I'm sure that both sides would have a few tricks up their sleeves, there is one indisputable fact. Warfare has become SO VERY DEADLY, no state can protect it's people and infrastructure. As demonstrated in Waco and MANY other places; when your only tool is a hammer, everything looks like a nail. Destruction, NOT protection.

After Hiroshima and Nagasaki, MAD stopped the wars. The PTB didn't like that and new weapons were developed that wouldn't poison the whole world. Neutron bombs and fuel-air bombs did adequate destruction but, didn't poison the planet. Then came depleted uranium bombs and world poison came back. Add in Fukushima and there was /is a new appreciation for how bad we could mess up our planet.

The new weapons are so lethal that nothing is out of reach.
The Sunburn - Iran's Awesome Nuclear Anti-Ship Missile
Russian Super Sunburn SS-N-26 ONYX Missiles Make US Navy Obsolete & US Attack on Iran Suicidal
We've reached a point to where we are essentially defenceless. This is a good point to reach. If defeat is assured, we are less likely to attack. The military might very well survive but, what good is that if the whole country is paralysed?

The London bankers have used the FED and U.S. military to propigate empire. Asymmetric warfare will be their undoing.

[Danny B]

The Eastern front

As I already mentioned, there are huge amounts of money sloshing in and out of markets. This is crashing many exchanges and States. Various States have talked about forming currency unions to protect themselves from the FED.
“It is going to happen in a matter of days rather than weeks, Brazil and India can start the move,” said Dipak Dasgupta, a top Indian official.

Mr Dasgputa told Reuters that China, Brazil, India, Turkey, Russia and South Africa have all been squeezed as the US Federal Reserve prepares to tighten monetary policy. Joint action would give emerging markets greater firepower, allowing them to deploy their combined $8.7 trillion (£5.6 trillion) of reserves and crush “speculators”, rather than being picked off one by one. "
India pushes 'shock and awe’ currency plan to save BRICS - Telegraph

Love and hate all die out but, guilt goes on forever. The lefties in Europe have hitched up Germany to the European cart so that they can do all the work. The Germans are quite tired of this. Jim Willie said that they want OUT.
The Shanghai Cooperation Organization (SCO) is a work in progress of a group of States that want OUT of the dollar prison.

"Pakistan, India, Afghanistan and Mongolia are expected to become full members of the Shanghai Cooperation Organization (SCO) at its next summit, said former Secretary General of Ministry of Foreign Affairs Akram Zaki on Wednesday. Speaking at an international conference entitled “SCO’s Role in Regional Stability: Prospect of Its Expansion” organized by Islamabad Policy Research Institute here, Akram Zaki said China and the Russian Federation had supported Pakistan, India and other countries’s membership of the SCO."

"At present Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan are members of the SCO while Pakistan, Afghanistan, Mongolia and Iran have observer status and Turkey, Sri Lanka and Belarus are dialogue partners."

"Experts and officials from Pakistan,Germany ,Tajikistan, Belgium, Kyrgyzstan and China participated in the seminar."
This is a very impressive group. It includes all the top oil,, gas and wheat producers in Asia. With China and Germany , it includes a LOT of manufacturing capacity. Onviously Belguim is in there because they plan to run the whole show.
Mongolia and Afghanistan have the mineral wealth.

The East is putting together a united front to stop the ravages of the London bankers, CIA and U.S. military.

[Danny B]

China, Rickards and Syria

Dave Hodges claims that "we" have bought 2 months time to stop an attack on Syria.
Syria Could Become a Rallying Point Against the Banksters | Dave Hodges – The Common Sense Show
The Activist Post lists 12 things that you can do to prepare.
Activist Post: 20 Triggers For Collapse If US Strikes Syria...

Brandon Smith has links to articles from years ago where he predicted much of this stuff. It would seem wise to pay attention.
Syria And Iran Dominos Lead To World War

This is part II of an article by Kristie Pelletier and Michael S. Coffman, Ph.D
The other parts are linked.
"However, James Rickards, economist and security advisor to the Pentagon, CIA and the Director of National Security cautions: "
"Rickards calls it the “third global-currency war in history.”
"In summation Rickards warns: “To put it plainly, this intentional currency debasement will destroy the dollar and your wealth. And that's in the best-case scenario. In a worst-case scenario you've got a global Great Depression, as well as international turmoil that could escalate to military conflicts.”.

"While inflation will be discussed in detail in Part III of the Financial Death Spiral series, the Third Currency War has already increased food prices by 148 percent since 2001 and energy prices by 468 percent. "

"In preparing War Game scenarios for the Department of Defense and CIA, James Rickards said that if it was suddenly revealed that China had four thousand metric tons of gold, “then you have a nuclear strike to the American dollar."

"The U.S. is, in fact, in a financial war with China, which, if we lose, will be more devastating than a military war."
" Rickards explains a series of War Games actually run by the http://www.newswithviews.com/Coffman...40.htmPentagon and CIA; from Israel attacking Iran to China just attacking the U.S. financial system directly. None end well. Most result in a complete meltdown of the entire global financial system."
Michael Coffman -- The Global Financial Death Spiral?, Part 2

In summation, China and Russia have said that they will not tolerate a strike on Syria or Iran. Russia has never been known for bluffing. The bankers are twisting obama's arm to attack. Y'all better buy some beans and bullets.

[Danny B]

printing and deflation

Many pundits are writing about the collapse of China from excess debt. Here is a chart to show the per-capita debt.
http://goldsilverworlds.com/wp-conte...apita_2012.gif
UK has managed to run up the debt twice as high as the U.S. Keep in mind that the U.K is at the end of the gas pipeline from Russia. The Syrian fight is a fight over pipelines. Will Russia send gas to Europe or will Qatar send gas to Europe?
Why Sryia? It's Not What You Think, & It's Not What You've Been Told | SilverDoctors.com
How will the U.K. pay for gas?

America isn't producing wealth so, it has to settle for producing currency. The stock market goes up in tandem with the printing presses.
http://goldsilverworlds.com/wp-conte..._2009_2013.gif

This chart shows that gold goes up in deflation even when commodities go down.
http://goldsilverworlds.com/wp-conte..._deflation.gif
Interesting charts;
Gold Bull & Debt Bear Market In 50 Amazing Charts by Incrementum | Gold Silver Worlds
All this printing is for a reason. "What the Fed is trying to do is get inflation. They have tried already everything: QE, Operation Twist, communications … but everything has failed. They now try to cheapen the dollar and import inflation from abroad"
James Rickards: World Currency System Moving Towards Catastrophe | Gold Silver Worlds

We're in crashing deflation because of enormous job losses. Bernanke bragged that the could always stop deflation with the printing press. What an idiot. Price inflation is caused by a wage-price spiral as fresh money moves into the economy. Effective wages are falling. Global-wage arbitration will continue to depress domestic wages.
http://s3.amazonaws.com/dk-productio...gif?1362597817
He thinks that he can crash the value of the dolar and make our exports cheaper. Apparently, it never occured to him that other States would do the same thing. Everybody wants to export but, as they crash the value of their currencies, nobody can afford to buy all those waiting exports.

The Industrial Revolution brought us stupendous productivity. Monetary inflation reduces our consumptive power. Automation and global-wage arbitrage reduce consumption. The bankers want us to keep the economy churning so that they can extract interest. They don't do anything to increase our consumptive power. They print currency to rescue the debt that we can no longer service. They transfer their debt to the Treasury so
we can pay on it forever.
This will never happen if they can't return our purchasing power.

[Danny B]

Legal earnings and interest

The general nature of all economies is to increase efficiency. This brings down prices. The automation of the Indistrial Revolution caused a huge increase in efficiency. This increase in efficiency can be expressed in 2 ways.
A. prices can drop.
B. prices fail to drop because prices are maintained high to substantially increase profit margins.
Prices naturally drop from efficiency AND competition. If an enterprise wants to preserve un-naturally high profit margins, it must maintain a monopoly. This is generally done by collusion. The good ole boys agree over drinks. In 1919, the Dodge Bros sued Ford for selling his cars too cheap.
Dodge v. Ford Motor Company - Wikipedia, the free encyclopedia

At one time, the owner of a company made 15 times what his employees made (general). Today, that has changed to 300 times. (generally).
Various persons and corporations have reportedly socked away $ 23 trillion in offshore banks. They earned this money legally,,,, more or less.
By blocking natural price decrease, they have amassed quite a fortune.

The rich buy the politicians. The monopolies are enforced. We are hugely overcharged. The rich have the advantage of monopoly-maintained price margins. The rich put all this money to work to grow the pile.
Balzac, "Balzac maintained that behind every great fortune there is a great crime."
Yes, the super-rich "earned" their money legitimately. It is only legitimate gains because of illegimate laws that maintain monopoly. They wrote the rule book to block natural price deflation.
At the same time, the rich illegally used violence and the power of the state to block wage increases. The police and even the army are used to stop wage demands. In one instance, the U.S. army with armor was used against U.S. army veterans who were demanding payment of money owed.
Bonus Army - Wikipedia, the free encyclopedia

Price deflation is blocked.
Wage gains are blocked.
The rich have a revolving door in and out of politics.
America’s Real Divide: The Political Class, And The Rest Of Us - Liberty Crier
High prices and low wages are maintained. Sweden and Norway followed the socialist model of having the workers own the means of production.
How Swedes and Norwegians Broke the Power of the ‘1 Percent’ | NationofChange

The French form of socialism is hopeless because it tries to support the non-working with the artificially high prices. It costs too much. The Swedish form of socialism removes a great deal of the profit margin and is more affordable. Socialism does not work of people are allowed to do nothing. Capitalism does not work if the proceeds are directed only to the workers.

Mondragon is somewhere in the middle. Everbody has to work. There are incentices for success. The incentives have limits. This spreads the wealth around more evenly.
Mondragon Corporation - Wikipedia, the free encyclopedia

The very rich have amassed huge fortunes. They have removed enormous amounts of wealth from general circulation. This all looks good in the short term. In the long term, their limitless greed coupled with regulatory capture may have endangered their very fortunes.
The item most endangered is "rent" on money. Bernanke is working hard to depress interest rates even though it is the "bread and butter" for his beloved banks. All the big banks colluded to supress the LIBOR rate. (interest). Everybody is working to supress interest rates. There is general agreement that the economy can not support both growth AND interest.

World GDP growth is about 1.7 %. This INCLUDES money printing. Since printing is growing like crazy, this tells you that the rest of what constitutes GDP is shrinking like crazy. There is no possibility of paying interest with a shrinking income. It appears that "rent on money" is incompatable with low population growth. Time will tell.

[Danny B]

Debt ceiling

As you know, the debate on the debt ceiling is coming up soon. There is a very good reason for that.
"With the passing of August, the official accounting of the U.S. debt has remained stuck at exactly $16,699,396,000,000 for another month – and, as of Wednesday, 109 days in a row.

The debt has been frozen at that amount because of an accounting trick Treasury Secretary Jack Lew calls “extraordinary measures.”

Those measures have prevented the government from defaulting on its obligations and allowed it to keep borrowing for 108 days, while keeping the official debt just $25 million below the legal debt limit set by Congress of $16,699,421,000,000."
Unheard of: Debt stuck at $16.7 trillion for 109 days!

MARVELOUS trick. All they have to do is to say that the debt is not rising and, presto, it doesn't rise.
It stays at $ 16.7,,,, minus change. This is hard to believe that debt isn't rising. VERY hard to believe.
U.S. National Debt Clock : Real Time
The debt ceiling has been rising steadily.
http://www.heritage.org/federalbudge...-limit-560.jpg
http://cdn.theatlantic.com/static/mt...tory-49343.php

"When Congress reconvenes Monday, it has just nine working days to keep the government funded past Sept. 30, and an additional seven working days after that to ensure the country can continue to meet its debt service obligations beyond mid-October."
“Instead of coming into session next week and diving right into a budget debate, we will be debating Syria and budget issues will be on the back burner,”
How Syria Affects The Government Funding And Debt Limit Debates | TPMDC

[Danny B]

Falling purchasing power and falling consumption

I've written a lot about the effects of efficiency and automation. Gordon T. Long is an excellent analyst who takes a VERY good look at the situation.
http://www.triggers.ca/dl/public/201...septpublic.pdf

[Danny B]

The cost of wars

There are plenty of articles on the net talking about how American infrastructure is falling apart,,, particularly the bridges. There just isn't any money to maintain our country. Even the disasters are too expensive to remedy. Senator Graham Rep,S.Carolina, among others voted not to help the people ruined in the the Sandy storm. He said that it was too expensive. Senator Graham also voted to have a full-on expensive war with Syria.
Senator Graham also sponsored the Graham-Leachy bill that removed the protection of the Glass -Steagal act. He has been quite busy.

Where would we be without the wars?
"As I've written before, before 9/11, the Congressional Budget Office stated: "Under current policies, total surpluses would accumulate to an estimated $2 trillion over the next five years and $5.6 trillion over the coming decade. Such large surpluses would be sufficient by 2006 to pay off all debt held by the public that will be available for redemption."
Wouldn't that be just dandy?

"Clearly, that didn't happen, and the United States' national debt now sits at more than $16.9 trillion -- and climbing"
" But if the U.S. goes to war with Syria, Congress will be forced to pass a measure to fund the war. That would be great news for defense contractors in general"

these are the same people that Eisenhower warned us about
How Much Will a War With Syria Cost?
The FED now holds 39.5 % of all U.S. treasury debt.
http://research.stlouisfed.org/fred2...ax_630_378.png
Just how high can this go?

Interest rates just topped 3%.. If/when they hit 3.5 %, everybody expects there to be a disorderly exit from the bond market.
The saying goes, "never start a panic but, if you do, make sure that you are the first to the exit". Look at the trajectory;
http://marketrealist.com/wp-content/...28-GT10-ST.jpg

[Danny B]

Sovereign control and competing currencies

In 1997, a person with the psuedonym of "Another" started posting on the old Kitco forum. He was more that informed. He knew what the central bankers knew. He claimed that the monetary authorities realized that a new system would have to be implemented when America broke the Bretton Woods agreement in 1971.
Another (Thoughts!): The Profound Story of Gold and Oil

John Maynard Keynes had stated in 1944 that no currency would survive if it was under the control of just one country. This new currency would have to have control that was not centralized in one country. " Keynes was right when he stated at the 1944 Bretton Woods conference that a sovereign currency would not work as the world's reserve currency"
As The Bernanke Era Comes To An End A New Global Paradigm Is Almost Certain But Few See It Coming - Joseph Stuber - Seeking Alpha
This lead to the emergence of the Euro. "IT" was specifically designed as a currency,, where others just arose out of conventional use. The dollar was supported as it grew worse and worse. This was done to give the Euro time to be rolled out.
Meanwhile Goldman Sachs worked diligently with various poor European countries to hide their debt. They were allowed to join the single currency group. Later, this hidden debt blew up and dragged down the whole Eurozone. The Euro was designed to have a floating gold backing that would have the gold marked-to-market every quarter. This is a much better idea than having a fixed-price for gold. The currency is still flexible but, can't be over-inflated.
That was the original design. The restrictions have been tossed out to try to preserve the Eurozone. It is a good currency but, the dollar people sabotaged the currency union. The Eurozone authorities bent over backwards to include the PIIGS. This too contributed to the failure.
The Eurocrats from way back admitted that they knew in advance that the Eurozone would collapse without a political union.
No monetary union had ever survived with first having a political union. They got in a big rush and went ahead anyway. They figured that they would bring the political union AFTER the collapse. The Euro was born premature.

Great Britain stayed out of the Union because the Anglo-American dollar union planned to sabotage and collapse the competition for the dollar.
The Euro is a much better currency.
The Euro has a pretty transparent stash of gold. America's gold represents "At present gold represents 71% of total US
foreign exchange reserves"
http://mercury.ethz.ch/serviceengine...+e-version.pdf
Since the U.S. stash of gold has gone missing, the Euro is actually a better currency. It is well known that the anglo-amercan bankers of London have sent all the gold East to try to save their system. It is also WELL know that everyone's allocated gold accounts have been raided. This is, of course, a crime. The alternative to this crime would have been to just let the dollar crash. They have bought some time but, eventually, they will run out of gold to steal.

As if that isn't enough trouble already, it is a recent disovery that an ageing population causes negative effects in an economy.
The Federal Reserve Has A Demographics Problem — Aging Societies Are Making Monetary Policy Less Effective - Yahoo! Finance
The conclusion of the paper is that "somebody has to do something".

The middle class has been wiped out because natural price deflation was blocked. The old farts consume their savings which removes capital from the system AND they stop producing.

The G-20 is talking about ending all tax havens.
G-20 Plans to End Offshore Tax Shelters | The Fiscal Times
The problem is GOV. The producing economy can do OK if GOV regulations and crony capitalism are ended.
Bleeding the country dry to enrich the war profeteers is not the way to create a healthy economy.