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

[Deleted member 73486]

It is much more realistic to back our national currency with the gold standard. Gold is the ultimate stable currency because you can't just print more when you run into trouble.

Nixon did many things right (yes, I'm a liberal and I acknowledge that much -- remember the EPA was founded under Nixon after all), but taking us off the gold standard was not one of them.

The good news with gold is that the U.S. has more reserves than any other country, by far! We have more than the next three countries combined!!! So if we switch to a gold standard, we will be in the fabled cat-bird seat (to quote Raising Arizona).

Of course, the Fed will be hampered by this, but I see that as a very good thing (I am fiscally conservative, despite my liberal leanings). Make them use interest rates appropriately to control inflation/deflation. Reset everything to gold including all currencies, reset the interest rates to a reasonable amount, and then watch classic economics take over...no more helicopter money to those companies that don't deserve it in the first place!

Furthermore, we cannot just borrow our way to prosperity. Eventually, there will be a reckoning and that will be a very painful day indeed! Raising taxes across the board is one way to hamper the economy for years afterwards. But we will have no choice if we fail to reign in reckless spending on corporate socialism!

 

[Picaro]

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.

"Backing" the dollar with such thing only begs the greater question; What is value and from where does it emerge?
All those commodities are no different from what the money itself consists of, be it paper, cloth, metal or anything else. Anything only has value when someone assigns value to it. How much value could not be more purely relative.

Yes, no arguments there, but a convenient method of exchange beyond barter is necessary; there is nothing wrong with agreements on what can be used, and it so happens that historically gold and silver work just fine, and for a several good reasons, as internationally accepted specie. They have more advantages than disadvantages. And with a paper currency, they don't have to be physically moved around, either, whether paper currency or 'electronic' blips.

The problems are mostly caused by debt, whether public or private; debts is leins on future production of wealth, and produces more currency than currently available, and with the constant and inevitable abuse of leverage against false valuations of equity, and of course it's the 'free markets' speculators that are the greatest abusers and fabricators of fake 'equities', which is why makrets can't really be 'free' without competent oversight.

 

[there4eyeM]

If conventional finance were transcended by another rational system of co-operation, then those enmeshed in the past would be the only ones to lose. As it is they who have entangled the rest of us, that would be "too bad", wouldn't it?

 

[Picaro]

It is much more realistic to back our national currency with the gold standard. Gold is the ultimate stable currency because you can't just print more when you run into trouble.

Nixon did many things right (yes, I'm a liberal and I acknowledge that much -- remember the EPA was founded under Nixon after all), but taking us off the gold standard was not one of them.

The good news with gold is that the U.S. has more reserves than any other country, by far! We have more than the next three countries combined!!! So if we switch to a gold standard, we will be in the fabled cat-bird seat (to quote Raising Arizona).

Of course, the Fed will be hampered by this, but I see that as a very good thing (I am fiscally conservative, despite my liberal leanings). Make them use interest rates appropriately to control inflation/deflation. Reset everything to gold including all currencies, reset the interest rates to a reasonable amount, and then watch classic economics take over...no more helicopter money to those companies that don't deserve it in the first place!

Furthermore, we cannot just borrow our way to prosperity. Eventually, there will be a reckoning and that will be a very painful day indeed! Raising taxes across the board is one way to hamper the economy for years afterwards. But we will have no choice if we fail to reign in reckless spending on corporate socialism!

Yes, which is why the paleo-liberals never supported increasing govt. spending without tax increases to pay for it, while 'conservatives' and right wingers much prefer higher government debt ratios and less restraints on creating fake equities by the 'private' sector. Yeah, I know they like to lie about what they really support, but we have hundreds of years of evidence they like to lie a lot; they actually love lots of Federal and state spending, as long as they can buy themselves tax breaks and don't have to pay for their favorite welfare project themselves.

 

[Picaro]

If conventional finance were transcended by another rational system of co-operation, then those enmeshed in the past would be the only ones to lose. As it is they who have entangled the rest of us, that would be "too bad", wouldn't it?

There is no reason debt and money can't be 'reset' every year to reflect inflation, or deflation, for that matter, so speculators and honest businesses don't have to worry about the effects of inflation on their real assets and savings, and no one gets a big unearned boost and windfall from paying back debts in dollars worth less than what was borrowed in the first place.

 

[JimBowie1958]

It is much more realistic to back our national currency with the gold standard. Gold is the ultimate stable currency because you can't just print more when you run into trouble.
Reset everything to gold including all currencies, reset the interest rates to a reasonable amount, and then watch classic economics take over...no more helicopter money to those companies that don't deserve it in the first place!

Furthermore, we cannot just borrow our way to prosperity. Eventually, there will be a reckoning and that will be a very painful day indeed! Raising taxes across the board is one way to hamper the economy for years afterwards. But we will have no choice if we fail to reign in reckless spending on corporate socialism!

This national debt is money that we mostly owe to ourselves.

In a crisis we can do any number of things, the risk being how the Saudis react.

I would like to remove the Saudis from the equation.

 

[there4eyeM]

It is much more realistic to back our national currency with the gold standard. Gold is the ultimate stable currency because you can't just print more when you run into trouble.
Reset everything to gold including all currencies, reset the interest rates to a reasonable amount, and then watch classic economics take over...no more helicopter money to those companies that don't deserve it in the first place!

Furthermore, we cannot just borrow our way to prosperity. Eventually, there will be a reckoning and that will be a very painful day indeed! Raising taxes across the board is one way to hamper the economy for years afterwards. But we will have no choice if we fail to reign in reckless spending on corporate socialism!

This national debt is money that we mostly owe to ourselves.

In a crisis we can do any number of things, the risk being how the Saudis react.

I would like to remove the Saudis from the equation.

"Remove" could sound ominous to some. I would definitely agree they be held at a distance. In any case, we need a much more reasoned attitude (and not just toward them).

 

[JimBowie1958]

I would like to remove the Saudis from the equation.

"Remove" could sound ominous to some. I would definitely agree they be held at a distance. In any case, we need a much more reasoned attitude (and not just toward them).

Lol, I dont mean harming the Saudis in any way, but they do prop up the value of the US dollar by making it the world reserve currency using it as the sole currency other nations can buy their oil with.

If they ever drop this requirement, and it looks likely imo over the next ten years or so for many reasons, then the US dollar will be at risk of huge devaluation as nations around the globe dump their vault money of US dollars.

 

[Picaro]

It is much more realistic to back our national currency with the gold standard. Gold is the ultimate stable currency because you can't just print more when you run into trouble.
Reset everything to gold including all currencies, reset the interest rates to a reasonable amount, and then watch classic economics take over...no more helicopter money to those companies that don't deserve it in the first place!

Furthermore, we cannot just borrow our way to prosperity. Eventually, there will be a reckoning and that will be a very painful day indeed! Raising taxes across the board is one way to hamper the economy for years afterwards. But we will have no choice if we fail to reign in reckless spending on corporate socialism!

This national debt is money that we mostly owe to ourselves.

In a crisis we can do any number of things, the risk being how the Saudis react.

I would like to remove the Saudis from the equation.

Why? Like the Red Chinese surpluses, most of that 'foreign exchange' ends up right back here in the U.S.; no other economies combined can absorb it like we can. The issue is how much ownership control they buy with it, and we can easily regulate that the same way Red China and Saudis regulate their own; they don't go in for all theat 'free market' nonsense Wall Street peddles to the rubes here in the U.S.

A lot of that excess has already been dumped here; you haven't been paying attention. Their big problem is how to shit on us without pissing us off enough to repudiate their bonds and other assets. Why do you think they love Democrats and the Party Of Treason And Racist Violence so much? The Dems pander mostly to assorted stupid dope addled dufuses and feral vermin who can be fooled into cutting their own throats and shit in their own nests with manic enthusiasm.

 

[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.

CWayne, I appologize for not going into more detail, but the ETFs that would compose the precious metals part of the EDollar, would be using fractional reserve methodology too.

So a certificate of say 1k gold ounces might have 20 certificates based on that amount, figuring no one is going to do a run on the Federal reserve to get the ETFs and then try to claim the gold.

The Federal Reserve would also have the option of how to compose the redemption, using what they have alot of instead of any specific commodity ETF, security, bond or whatever asked for by the redemer, as the Feds get to decide based on what they have.

Also, another way to keep control would be to base part of the EDollar on an instrument issued by the Federal Reserve credit which could then issue new credit notes to fill in as needed, though that would be risky.

 

[Natural Citizen]

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.

The Bank of International Settlements has been promoting the idea of doing away with physical mediums of exchange and going with straight digital.

Central bankers are absolutely interested in the idea. They've openly stated as such, and I've posted it around here recently, straight from the horses own mouth. And they didn't try to squeeze digital currency into that last coronavirus bill for nothing.

Instead of having to report a ten thousand dollar bank deposit, with digital currency, every single nickle a feller takes in or moves out gets scrutinized.

Full spectrum dominance...

And that's not even getting into high speed trading. Pffft. Good luck auditing that. Or catching any skullduggery going on, particularly funneling money to black budget or insider stuff.

 

[JimBowie1958]

Italy has established a criteria for starting an e-currency for the Euro.

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1. Monetary stability and full compliance with the European regulatory framework must be preserved as a matter of priority.
2. Italian banks are already operating on a Distributed ledger technology DLT infrastructure with the Spunta project. They are intended to be part of the change brought about by an important innovation such as digital coins.
3. A programmable digital currency represents an innovation in the financial field capable of profoundly revolutionizing money and exchange. This is a transformation capable of bringing significant potential added value, particularly in terms of the efficiency of the operating and management processes. Hence the importance of dedicating attention and energy to develop, quickly and with the collaboration of all the ecosystem players, useful tools first of all for the development of the Euro area.
4. Digital money needs to be fully trusted by citizens. To this end, it is essential that the highest standards of regulatory compliance, safety and supervision are adhered to.
5. In particular, a Central Bank Digital Currency, thanks to the central role played by the Central Bank, represents the tool that more than any other can reconcile the needs of innovation, in line with the current reference framework of rules, existing instruments and interoperability with the analog world. The existence of such an instrument could at the same time reduce the attractiveness of instruments of comparable use but issued by private individuals or (in cases of complete decentralization) which cannot be identified, characterized by an intrinsically higher risk profile.
6. With the aim of fully explaining the transformative potential of these instruments, the possibility, at the moment of study, of issuing a European CBDC intended for the public, which could represent an evolution of cash, is of particular interest. Thanks to the role of the banks, it is possible to identify technical solutions and reference models to preserve the current characteristics of cash, while introducing many benefits of the digital world (already proper to electronic payment instruments), such as the possibility of not losing the own money and, in this period of strong attention to health risk, to operate in contactless mode.
7. Detailed work will lead to the identification of the distribution, conservation and exchange model of digital currencies that best fits the customer's service needs, to maintain the effectiveness of the monetary policy transmission mechanisms and regulatory compliance. Of course, in each of these objectives, the role of banks is crucial
8. Achieving high ease of use, while ensuring full interoperability between the digital and analog world and a total level of circularity between all the players in the ecosystem, represents a success factor in the diffusion of these tools.
9. Particular attention must be paid, according to the technological choices that will be adopted, to the citizens' personal data protection profiles.
10. Projecting these reflections into the future, it is possible to affirm that the availability of a CBDC will enable a series of use cases of great interest: to favor the transmission of value between peers, thus also facilitating the logic of exchange between person and machine and between machine and machine; allow the settlement of cross-border peer-to-peer transactions, mitigating the interest rate, exchange rate and counterparty risk; Promote, thanks to the programmability characteristic of these currencies, the execution of exchanges upon the occurrence of predefined conditions, ultimately reducing administrative processes.

 

[San Souci]

Let Europe adjust to US.