>The G-20 meetings taking place in and around London are not giving us the real story. While President Obama is hobnobbing with rulers and presidents of the world’s most financially — I was going to say powerful, but changed my mind — invested countries, his secretary of the Treasury, Tim Gaithner, is meeting in back rooms with his counterparts from those 20 nations.
And the topic is something that could hurt you financially unless you are prepared with enough assets, food, clothing, gold and housing that you don’t have to rely on money in the bank which won’t be worth too much, anyway. Experts think gold could go up to $5,000 an ounce. Wow!
Larry Edleson is touting gold — because the entire world wants to get off the dollar and create a new currency backed by the International Monetary System and a dollar won’t be worth much.That’s why Obama is depreciating the dollar with all of his targeted spending — outrageous spending, in fact.
If we were all smart, we’d stock up on commodities so we could live for a year without having to go to the grocery store. We’d own our homes so we don’t have to try and pay it off with those inflated dollars, or would you? No, come to think of it. Inflated dollars are fine — in fact if you owed $400,000 on your mortgage and a dollar became worth only a penny, .01 then everything you had to buy to subsist would be out of sight, but fixed debts could be paid off quicker with these cheap dollars. The ones who would be hurt would be those owning property that they thought they would sell — because everything will be different.
Here’s the report, and you decide who’s better off:
What you won’t hear much about, though, will be the secret meetings hidden from the media to forge a radical overhaul of the world’s monetary system.
Attendees at the G-20 meeting will strive to wipe the world’s debt ledgers clean.
The real goal of the G-20 meetings: Creation of a new financial order based upon drastically new units of paper or fiat money to help wipe the world’s debt ledgers clean.
How? By systematically and progressively devaluing existing currencies, especially the U.S. dollar, and re-inflating ALL asset prices.
If the plan shapes up as I think it will, my current target for gold of $2,270 could turn out to be ultra-conservative. Depending on how the new currencies are structured, we could ultimately be looking at $5,000 gold … or even higher!
Over the next few weeks, I recommend you keep your ears tuned to the media for phrases like “new financial architecture” … “new monetary system” … the “rules of the game” … “Bretton Woods II” … and other financial speak. They are essentially the cover words that will ultimately spell a dramatic change in the value of money.
And while the planning stages will occur behind closed doors, already the public cries for a seismic shake-up of the world currency structure are becoming louder and louder …
French President Sarkozy recently declared, “We must rethink the financial system from scratch, as at Bretton Woods” … and that it’s time to “change the rules of the game.”
British Prime Minister Brown touts “a new global financial order,” describing this as a “decisive moment” for the world economy to adopt a “new Bretton Woods.”
European Central Bank council member Ewald Nowotny calls into question the “centrality of the U.S. dollar” and further states that the U.S., Europe, and Asia are developing a “tri-polar global currency system to replace the current dollar-centric reserve structure with more centers of gravity.”
At the recent World Economic Forum, Russia’s Prime Minister Putin explains that “Excessive dependence on a single reserve currency is dangerous for the global economy.”
The People’s Daily, the official newspaper of the Chinese Communist Party and the unofficial mouthpiece of the Beijing government, warns of the threat of a “financial tsunami” and urges action. “The world urgently needs to create a diversified currency and financial system and fair and just financial order that is not dependent on the United States.”
On March 19, the United Nations Commission on Reforms of International Finance and Economic Structures, chaired by the 2001 Economics Nobel Prize-winning economist, Joseph Stiglitz, recommended that the dollar be replaced as the world’s reserve currency.
On March 23, the People’s Bank of China (PBOC), China’s central bank, proposed replacing the U.S. dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.
Changing the value of a currency is nothing new. Government officials have talked the talk before. Treasury Secretary Donald Regan floated the idea in response to the Latin American debt crisis in 1982. The next year, when the French franc nosedived with three successive devaluations, it was President Francois Mitterrand’s turn to call for “a new Bretton Woods.”
Then, spurred by the emerging-market financial troubles of 1997-98, British Prime Minister Tony Blair opined, “We should not be afraid to think radically and fundamentally … We need to commit ourselves today to build a new Bretton Woods for the next millennium.”
In the past, whenever an international financial crisis crops up, authorities in high places have often referred to a new Bretton Woods “solution” (i.e., changing the value of paper money).
This time, though, given the Great Depression II, it looks like the current generation of leaders is ready to walk the walk. Indeed, they may have no other choice.
The First Seeds of Major Global Currency Tampering —
The 1933 London Monetary and Economic Conference
The concept of changing the world’s monetary system to wipe bad debts clean and to start anew with a fresh ledger or balance sheet, if you will, is not new.
It dates back to Roman times when emperors successively devalued the Roman denarius to wipe out debts and spark asset inflation.
More recently, emerging economies have engaged in chronic currency devaluations to deal with their mountains of debt. But surprisingly to most analysts, the industrialized world has also tried to “change the rules of the game,” which is central-bank speak for altering the value of paper money.
And interestingly, the most famous historical precedent — almost an exact analogy to today’s emergency G-20 meetings — was a little-known but critically important meeting in 1933, called the London Monetary and Economic Conference.
At the depths of that Great Depression, the world’s leading economic ministers met to find a cure for the global depression … just like they’re doing today.
But when finance ministers, central bankers and government leaders met in London to work out a plan, President Franklin Roosevelt changed his mind at the last minute and refused to attend. By most historical accounts, he had decided that there was no time to bicker with other nations and that action needed to be taken immediately.