Simone Wapler – La Chronique Agora (France) –
Eurodollar parity challenges central bankers. Monetary manipulation has gone too far and cyber-currencies are likely to shake monetary monopolies.
I am cruel. I love it when the great planners and the learned economists who guide them take their feet in the carpet. I adore when their theories wrecked by the facts turn out to be smoky.
Any monetarist and any high school student who has absorbed his indigestible textbooks of well-thinking economy would say to you:
- The Fed is raising its key rate so dollar credit will be less abundant and what is rare becomes more expensive.
- The European Central Bank does not raise its key rate and still raises € 40 billion in free credit every month. This is abundant price drop.
- So the dollar will go up and the euro will drop and roll my hen.
Patatras, the reverse happens! The euro goes up, the dollar falls …
Do our central bankers and our learned economists have an idea, an explanation?
They have so distorted money and credit that I doubt it. I doubt they understand what they are actually doing.
Negative rates are an insult to common sense, saving and civilization.
Governments, major planners and economists agree on two things (stupid):
- Money must be a state monopoly and its quantity must be controlled by them and according to their principles.
- Currency does not have to be physical, nor is it a reservoir of value in itself. An interest rate on a government debt is sufficient to ensure the function of reserves of value.
The problem of a government is a congenital disease: a tendency to grow.
Expenditure, taxation, subsidies, redistributions and more …
Credit money – which exists essentially as an inion in a computer memory – gives governments the illusion that money is available in unlimited quantities.
Our modern governments no longer cut the coins, or do not print bulk bills to raise the inflation tax. Central bankers simply issue free credit and distribute it to their friends through the network of commercial banks.
The means are modern, but the strings are old.
There is a flip side to this coin because we live in a cruel world where free money does not exist.
Who says credit says debt.Who says infinite credit says infinite debt.Who says infinite debt says inhuman situation. The biped is not carved for eternity, it is mortal.
We are currently in this situation of infinite debt, that is why it is necessary to have low and lower rates than low.
Some have very well seen the danger and do not want to become debt slaves.
The «cybermonnaies»: an uncontrollable challenge of the monopoly?
Those of the old school (the old schnocks) advocate a return to the barbaric relic: gold (and silver). Even if governments or central bankers no longer want to link the quantity of money to a store of value in precious metals, nothing prevents the conservative biped from storing value in it. Finally … nothing but legislation and taxation, often punitive and dissuasive …[Editor’s note: Do you know the charms of this gold coin that even benefits in France a very soft tax, comparable to that of any currency? To discover it,it’s here.]
Those of the new school created the “cybermoney”. Bitcoin, ether … these new additions multiply like hotcakes.
The fact that one or more reliable, secure, decentralized transaction networks that are beyond the control of the state is a terrible threat to the monetary monopoly of the latter.
If, for example, the cash Was imposed, many people would contract their transactions on these networks in the event of a threat of arbitrary taxation. The response to the totalitarian threat ofcashIs there, before our eyes, in the cyber-museums.[Editor’s note: To understand how e-money can help you and how you can get it,it’s here.]
Remain that the “cybermonnaies” are not today currencies in the literal sense. “Cybermoney” is simply a network of transactions such as Visa.
And yet they did not attain the status of “social convention” which was one of the monetary characteristics defined by Plato. Your baker, your neighbor, your telephone company, Amazon or your newsagent does not accept bitcoin or ether. It takes euros and laughs at knowing what Mario Draghi is tinkering with his 60 billion euros of free credit every month.
Even when accessing the status of a “social convention”, cyber-money will never have the status of money in the sense of Aristotle, or even the economists of the Austrian school holding “commodity money.”
A commodity currency needs no counterpart to exist, nor an operational network. It is content to exist. She laughs at the debt. She’s taunting him. It allows to exchange “something for something else” and not “something against a promise to pay one day”
Let’s dream …
Imagine the association of a vast international network of transactions, decentralized and beyond the control of the State.
Because there is no reason, reasonable, reasoned, objective and rational, in short no good reason for Google’s monopoly to be naughty and naughty but the monopoly of the currency is good and nice.
Let us imagine, then, gold and precious metal traders accepting unitary payments through these networks.
An alliance between the oldest and the most modern, in a way. Old schocks and geeks-techies hand in hand, and yes, dare the word solidarity!
What do we have then? A free commodity currency, the best of both worlds.
The state can tax us but it must do it honestly and not slyly, taking our money as a hostage and demanding its ransom with each transaction, or taxing the people who are not yet born until their seventh reincarnation.
But let us return to the sad and cruel reality, now and now, and to our obese states, riddled with debts of which, unfortunately, we are the guarantors because of the monetary monopoly which I am trying to denounce.
In the textbooks of indigenous economists of the great planners, it is said that when a currency falls, it is excellent for economic activity. And vice versa.
Of course, I never believed these cretineries. At my canonical age, I could see that the inhabitants of monkey-currency countries were rather poorer than the inhabitants of countries with strong money.
But we will now see if this strange drop in the dollar will enrich the Americans and if this strange rise in the euro will impoverish us Europeans.
And if the European equity markets are going to plunge because their companies will export less and blablabla, while the American stock markets will fly from records to records because with the weak dollar they will export a lot and blablabla …
Afterwards we giggle with laughter at the reading of the blunt prose of the central bankers to explain their future malversations.
For, as Chamfort said, “a day without laughter is a lost day!” “.