CDZ A Rough Idea for Converting the US Dollar to an E Currency, the EDollar

[JimBowie1958]

Eventually we will part ways with the Saudis and if we are not prepared to shift the USD to being backed by something other than petroleum, we are truly going to get reamed with hyper inflation over night. Global demand for petroleum is 99% why the USD has not gone into hyperinflation, IMO, but regardless, the USD should be updated to a more high tech medium anyway.

So the ideas I am bundling together go like this:
1) Use a chain block based crypto currency medium similar to Bitcoin.
2) Back it with a basket of commodities and equities that can be redeemed at a physical US Federal Reserve bank in a combination reflecting values at the time of redemption and chosen by the Federal Reserve.
3) The basket of commodities and equities would be balanced so that whether the Global economy is in recession or inflation, the EDollar stays stable.
So for example, the commodites side might be made up of gold, silver, copper, Rhodium and platinum for precious metals, and Bitcoin, Litecoin, Etherium, Dash for crypoto currencies with US Treasuries for more stability. This set of ten are to be things that go up in price with a downturn in the markets.

The opposite ten Equities and commodities that go UP with the markets would be some indexes on the DJI, S&P, NASDAQ, Top Four Retail stocks and rounding out with petroleum, wheat, and thorium for consumption commodities that go up with economic activity.

These components would be purchased by the Federal Reserve and built into the EDollar using fractional reserve credit ratios.

4) Initially, these components would fluctuate to keep a pegged value with the US dollar (not e-dollar) and the Fed would track its composition for a few years in a testing or data gathering period of time. Then, in reaction to a change in the oil markets, or just because the Fed feels like it is time to, we reverse the relationship, using averages over the testing period to establish a fixed proportion for the EDollar that would float without being pegged to anything other than its component parts. The physical cash currency would be pegged to the EDollar instead.

The advantages of doing this sort of thing would be that it can free us from dependency on the oil markets while it would also remove a requirement to purchase large reserves of physical commodities.

So why is this a horrible thing to do?

 

[Oddball]

I'll stick with coin of the realm, thankyouverymuch.

 

[JimBowie1958]

I'll stick with coin of the realm, thankyouverymuch.

there is currently no COIN of the Realm.

We dont even have a Realm.

 

[CWayne]

Eventually we will part ways with the Saudis and if we are not prepared to shift the USD to being backed by something other than petroleum, we are truly going to get reamed with hyper inflation over night. Global demand for petroleum is 99% why the USD has not gone into hyperinflation, IMO, but regardless, the USD should be updated to a more high tech medium anyway.

So the ideas I am bundling together go like this:
1) Use a chain block based crypto currency medium similar to Bitcoin.
2) Back it with a basket of commodities and equities that can be redeemed at a physical US Federal Reserve bank in a combination reflecting values at the time of redemption and chosen by the Federal Reserve.
3) The basket of commodities and equities would be balanced so that whether the Global economy is in recession or inflation, the EDollar stays stable.
So for example, the commodites side might be made up of gold, silver, copper, Rhodium and platinum for precious metals, and Bitcoin, Litecoin, Etherium, Dash for crypoto currencies with US Treasuries for more stability. This set of ten are to be things that go up in price with a downturn in the markets.

The opposite ten Equities and commodities that go UP with the markets would be some indexes on the DJI, S&P, NASDAQ, Top Four Retail stocks and rounding out with petroleum, wheat, and thorium for consumption commodities that go up with economic activity.

These components would be purchased by the Federal Reserve and built into the EDollar using fractional reserve credit ratios.

4) Initially, these components would fluctuate to keep a pegged value with the US dollar (not e-dollar) and the Fed would track its composition for a few years in a testing or data gathering period of time. Then, in reaction to a change in the oil markets, or just because the Fed feels like it is time to, we reverse the relationship, using averages over the testing period to establish a fixed proportion for the EDollar that would float without being pegged to anything other than its component parts. The physical cash currency would be pegged to the EDollar instead.

The advantages of doing this sort of thing would be that it can free us from dependency on the oil markets while it would also remove a requirement to purchase large reserves of physical commodities.

So why is this a horrible thing to do?

So, how do you think the bankers will respond?

 

[JimBowie1958]

So, how do you think the bankers will respond?

Which bankers?

Federal Reserve banks, Wall Street banks or Main street/regional banks?

Overall I think bankers like a stable currency.

 

[Thunk]

I don't like the E-currency idea...but backing the dollar with a basket of commodities is a great idea!

Back the US dollar with gold, silver, platinum, palladium, uranium, coal, oil, nat-gas, even wire grade copper.

 

[CWayne]

So, how do you think the bankers will respond?

Which bankers?

Federal Reserve banks, Wall Street banks or Main street/regional banks?

Overall I think bankers like a stable currency.

If the bankers (all of them) cannot manipulate the currency and get rich off fractional banking, do you think they'll go for the idea?

After all, our currency is their property.

 

[Manonthestreet]

Eventually we will part ways with the Saudis and if we are not prepared to shift the USD to being backed by something other than petroleum, we are truly going to get reamed with hyper inflation over night. Global demand for petroleum is 99% why the USD has not gone into hyperinflation, IMO, but regardless, the USD should be updated to a more high tech medium anyway.

So the ideas I am bundling together go like this:
1) Use a chain block based crypto currency medium similar to Bitcoin.
2) Back it with a basket of commodities and equities that can be redeemed at a physical US Federal Reserve bank in a combination reflecting values at the time of redemption and chosen by the Federal Reserve.
3) The basket of commodities and equities would be balanced so that whether the Global economy is in recession or inflation, the EDollar stays stable.
So for example, the commodites side might be made up of gold, silver, copper, Rhodium and platinum for precious metals, and Bitcoin, Litecoin, Etherium, Dash for crypoto currencies with US Treasuries for more stability. This set of ten are to be things that go up in price with a downturn in the markets.

The opposite ten Equities and commodities that go UP with the markets would be some indexes on the DJI, S&P, NASDAQ, Top Four Retail stocks and rounding out with petroleum, wheat, and thorium for consumption commodities that go up with economic activity.

These components would be purchased by the Federal Reserve and built into the EDollar using fractional reserve credit ratios.

4) Initially, these components would fluctuate to keep a pegged value with the US dollar (not e-dollar) and the Fed would track its composition for a few years in a testing or data gathering period of time. Then, in reaction to a change in the oil markets, or just because the Fed feels like it is time to, we reverse the relationship, using averages over the testing period to establish a fixed proportion for the EDollar that would float without being pegged to anything other than its component parts. The physical cash currency would be pegged to the EDollar instead.

The advantages of doing this sort of thing would be that it can free us from dependency on the oil markets while it would also remove a requirement to purchase large reserves of physical commodities.

So why is this a horrible thing to do?

So, how do you think the bankers will respond?

Why should we switch to a system where govt knows everything you buy and spend money on? No thanks

 

[CWayne]

Eventually we will part ways with the Saudis and if we are not prepared to shift the USD to being backed by something other than petroleum, we are truly going to get reamed with hyper inflation over night. Global demand for petroleum is 99% why the USD has not gone into hyperinflation, IMO, but regardless, the USD should be updated to a more high tech medium anyway.

So the ideas I am bundling together go like this:
1) Use a chain block based crypto currency medium similar to Bitcoin.
2) Back it with a basket of commodities and equities that can be redeemed at a physical US Federal Reserve bank in a combination reflecting values at the time of redemption and chosen by the Federal Reserve.
3) The basket of commodities and equities would be balanced so that whether the Global economy is in recession or inflation, the EDollar stays stable.
So for example, the commodites side might be made up of gold, silver, copper, Rhodium and platinum for precious metals, and Bitcoin, Litecoin, Etherium, Dash for crypoto currencies with US Treasuries for more stability. This set of ten are to be things that go up in price with a downturn in the markets.

The opposite ten Equities and commodities that go UP with the markets would be some indexes on the DJI, S&P, NASDAQ, Top Four Retail stocks and rounding out with petroleum, wheat, and thorium for consumption commodities that go up with economic activity.

These components would be purchased by the Federal Reserve and built into the EDollar using fractional reserve credit ratios.

4) Initially, these components would fluctuate to keep a pegged value with the US dollar (not e-dollar) and the Fed would track its composition for a few years in a testing or data gathering period of time. Then, in reaction to a change in the oil markets, or just because the Fed feels like it is time to, we reverse the relationship, using averages over the testing period to establish a fixed proportion for the EDollar that would float without being pegged to anything other than its component parts. The physical cash currency would be pegged to the EDollar instead.

The advantages of doing this sort of thing would be that it can free us from dependency on the oil markets while it would also remove a requirement to purchase large reserves of physical commodities.

So why is this a horrible thing to do?

So, how do you think the bankers will respond?

Why should we switch to a system where govt knows everything you buy and spend money on? No thanks

I guess you don't understand the powers that run our system.

They will never allow you or anyone the power to utilize money without their knowing how.

 

[Manonthestreet]

Eventually we will part ways with the Saudis and if we are not prepared to shift the USD to being backed by something other than petroleum, we are truly going to get reamed with hyper inflation over night. Global demand for petroleum is 99% why the USD has not gone into hyperinflation, IMO, but regardless, the USD should be updated to a more high tech medium anyway.

So the ideas I am bundling together go like this:
1) Use a chain block based crypto currency medium similar to Bitcoin.
2) Back it with a basket of commodities and equities that can be redeemed at a physical US Federal Reserve bank in a combination reflecting values at the time of redemption and chosen by the Federal Reserve.
3) The basket of commodities and equities would be balanced so that whether the Global economy is in recession or inflation, the EDollar stays stable.
So for example, the commodites side might be made up of gold, silver, copper, Rhodium and platinum for precious metals, and Bitcoin, Litecoin, Etherium, Dash for crypoto currencies with US Treasuries for more stability. This set of ten are to be things that go up in price with a downturn in the markets.

The opposite ten Equities and commodities that go UP with the markets would be some indexes on the DJI, S&P, NASDAQ, Top Four Retail stocks and rounding out with petroleum, wheat, and thorium for consumption commodities that go up with economic activity.

These components would be purchased by the Federal Reserve and built into the EDollar using fractional reserve credit ratios.

4) Initially, these components would fluctuate to keep a pegged value with the US dollar (not e-dollar) and the Fed would track its composition for a few years in a testing or data gathering period of time. Then, in reaction to a change in the oil markets, or just because the Fed feels like it is time to, we reverse the relationship, using averages over the testing period to establish a fixed proportion for the EDollar that would float without being pegged to anything other than its component parts. The physical cash currency would be pegged to the EDollar instead.

The advantages of doing this sort of thing would be that it can free us from dependency on the oil markets while it would also remove a requirement to purchase large reserves of physical commodities.

So why is this a horrible thing to do?

So, how do you think the bankers will respond?

Why should we switch to a system where govt knows everything you buy and spend money on? No thanks

I guess you don't understand the powers that run our system.

They will never allow you or anyone the power to utilize money without their knowing how.

May be the goal.....not the current situation. btw if the electricity goes out good luck spending your "allowance"

 

[Gdjjr]

I don't understand crypto-currency and I have no idea what "block chain" means- I'm old, forgive my ignorance- but, can someone explain it?

 

[JimBowie1958]

If the bankers (all of them) cannot manipulate the currency and get rich off fractional banking, do you think they'll go for the idea?
After all, our currency is their property.

They can still do it.

 

[JimBowie1958]

I don't understand crypto-currency and I have no idea what "block chain" means- I'm old, forgive my ignorance- but, can someone explain it?

Block chain is just a secure way of trading documents over the internet, but in the case of crypto currency they do it with the idea of retaining or storing some intrinsic value due to demand for the secure doc.

Blockchain - Wikipedia

 

[Gdjjr]

I guess this is good a place as any to post this

The Invention of Money
In three centuries, the heresies of two bankers became the basis of our modern economy.

 

[Gdjjr]

Block chain is just a secure way of trading documents over the internet, but in the case of crypto currency they do it with the idea of retaining or storing some intrinsic value due to demand for the secure doc.

So, no inherent, or tangible value?

 

[JimBowie1958]

Block chain is just a secure way of trading documents over the internet, but in the case of crypto currency they do it with the idea of retaining or storing some intrinsic value due to demand for the secure doc.

So, no inherent, or tangible value?

Just the demand for it as a perceived store of value vrs fiat currencies and some commodities. Drug dealers for example will often take crypto in exchange for their drugs and other services due to its security and perceived value.

 

[Gdjjr]

or storing some intrinsic value due to demand for the secure doc

Who sets the value of the document? What's in the document that would make it valuable to anyone other than the holder- say, a baker?

 

[Gdjjr]

Sorry I don't get it-

 

[JimBowie1958]

or storing some intrinsic value due to demand for the secure doc

Who sets the value of the document? What's in the document that would make it valuable to anyone other than the holder- say, a baker?

The market demand sets the value, and there is nothing in the document that makes it valuable other than the fact it is secure, and only a limited number of the crypto will be published. That coming rarety makes them in demand.

 

[Gdjjr]

It's just trading one Fiat currency for another- that ain't all bad, but how do you acquire it? What is its cost in tangible assets?