coinciding with the USA's next "debt ceiling deadline" - Fw: Julie Bishop summons all Aust Diplomats home]

[James A. Donald]

On 3/4/2017 5:19 PM, Zenaan Harkness wrote:
> Anyone know what's really happening? Is this the big global reset?

Long ago silver was money, and gold was money, but banknotes were like 
checks - people would turn them into real money as fast as they possibly 
could.

And then, for no readily understandable reason, near the end of the 
nineteenth century, silver stopped being money, and only gold was money.

And then, people got used to using bank notes, and came to trust banks. 
Until the US started to run out of gold.  Whereupon Nixon said that US 
dollars were money, and gold was not money, and sort of got away with 
saying that.

And it came to pass that national currencies, banknotes, were money but 
only the home country, except that the US dollar was money everywhere.

And people said that gold was not money, and for a while, it seemed like 
it might be true, that gold was not money, that only the US dollar was 
money.

But somehow, gold never really stopped being money, and after a while 
people gave up on saying that gold was not money.

So now we have two global moneys:  The US dollar and gold - a 
potentially unstable situation.  But chances are this situation will go 
on for a very long time without being resolved one way or the other way.

If everyone starts thinking that one day the US dollar will stop being 
international money, they will turn all their dollars into gold, causing 
the prophecy to come true.  And if everyone starts thinking that one day 
gold will stop being international money, they will turn all their gold 
into dollars, causing the prophecy to come true.  And history suggests 
that it is not very likely that people are going to stop thinking that 
gold is money.

But there is no indication that the crisis is near.