Politiklive

index.php/2008/06/27/transformation/”>politikgoing to bell the cat?
Is the European Union going to declare someday, that it will no
longer accumulate dollars, and that those dollars that come its way,
will be sold for gold, on the spot, the only alternative? They have
not wanted to do that as yet, conscious of the fact that if they do
not accumulate dollars, they will have to restrict drastically their
sales to the U.S. market, and the political cost of unemployment that
such a measure involves, is too heavy for the E.U. to bear.
In any event, a debt collapse is approaching in the U.S., because the
excessive creation of dollars in recent years has been done with an
unbridled creation of debt. Debt on the part of consumers, on the
part of corporations, on the part of the Agencies of the U.S.
Government dealing in mortgages. And let us not omit, on the part of
a Federal Government whose deficit is blossoming in the best Third
World style.
When, not if, debt collapses in the U.S. – through bankruptcy or
inflation, it makes no difference – the ability to import from the
rest of the world will have to diminish. That will tend to
reestablish some parity between imports and exports. China and the
rest of Asia too, and Europe thrown in for good measure, will be
thrown into chaos when their export market collapses.
What we shall probably soon see – Lou Dobbs talking about
Protectionism shows which way the wind is blowing – is a drastic
movement toward Protectionism in the U.S.: tariffs on imports, to
provide some breathing room for local industry. Labor in the U.S. is
becoming restive – alarmed, as well it should be, by the spectre of
imports from Asia. Protectionism will arrive, and soon.
But Protectionism deals with a symptom, not with the fundamental
problem. It will cause many internal stresses within the U.S.
Externally, it will favor the loss of reserve status for the dollar
as world currency. Aspirin is no good for dealing with pneumonia.
However, Protectionism is something that people can understand. Most
people do not understand international monetary problems, nor do
these problems interest most voters.
Hurry! Hurry! Hurry!
With or without a new international monetary order, things are going
to change. They may change in an orderly fashion and with as little
pain as possible, if the change comes about as a result of a new
international conference to deal with the creation of a new
international monetary order. If the change does not come this way,
it will be drastic, disorderly and with no previous warning, like the
tremendous earthquake that hit Mexico City in September of 1985, and
killed – no one knows how many thousands.
The duly accredited monetary “experts” around the world are members
of an very exclusive club and they avoid at all costs, anything that
might endanger their relations within the high circles of finance,
national governments and supra-national organizations: the FED, the
IMF, the BIS and other bureaucratic organizations. In such circles
it’s bad taste to talk about what really has to be done. Perhaps
because what has to be done is so simple:
Gold must once again be the means of international payment. Deficits
in the trade balance must be paid in gold. Credit balances must be
collected in gold.
No other solution will do. Change will come, but it does not appear
likely that the change will be one that is voluntarily agreed to by
world powers. What the world will look like, after the change
arrives, is hard to imagine. It is my guess that the world will not
again resemble the world we have known, for many, many years, if
ever.
How can individuals prepare for such a change? Amid all the changes
we shall witness, we know only one thing: gold and silver will never
cease to be a store of value. Among all preparations, we must keep
that eternal fact in mind.
Source: www.plata.com.mx
11 February 2004