Tag Archives: Soros

New World Currency

This article in Huffington Post uses the term “new world order” in a novel (and optimistic) sense. Jeremiah has been warning that America will lose our dominance in international finance, and now it is happening. Punitive fines, sanctions, and currency wars are driving the world out of our currency zone.

A multi-polar financial world with new international financial centres emerging in Mumbai and Shanghai will be a more stable world.

The term “new world order” is generally used to describe a conspiracy, in which an international elite aims to create “one world government” with themselves at top. See here, for example.   The new world order described by Dr. Saidi is actually the antidote for one world government. Such are the pitfalls of using labels.

So, what about the new world order of one world government? Does that sound like a good idea to you? As always, we approach the theory by assuming that it is rational – and not a conspiracy.

We alreSorosady have a raft of supranational institutions like the IMF, the WTO, and the UN. The European Union aims to “transcend” the national governments of Europe, and already controls their currency. The leaders of these institutions may reasonably believe they’re doing the world some good. It’s human nature to believe that your outfit ought to have more funding, and more power.

Globalists, like George Soros and his various think tanks, believe that national governments are obsolete. They deny wanting a world government, but they want every issue – from welfare to monetary policy – handled by a global body.

Insofar as there are collective interests that transcend state boundaries, the sovereignty of states must be subordinated to international law and international institutions.

This amounts to world government, for all practical purposes. It promises an end to war, poverty, pollution, etc. People with this much faith in government are statists, by definition, and they believe in utopia.

SutherlandJeremiah does not have that kind of faith. He believes that the more power and personnel a government has – any government – the more despotic it will be. World government, therefore, would be a giant prison with no hope of escape, like The Hunger Games.

With globalism, as with socialism, we don’t want to get hung up on the label. We want to look at specific policies. For example, Soros and his crew want the IMF to issue the world’s reserve currency. This is obviously the enemy of human liberty. Just look at what happened to Greece, with the Euro.

This brings us back to Dr. Saidi and his multi-polar world order. We can no longer hope for the dollar to retain its reserve status. Failing that, we would rather have competing national currencies than a “new world currency” controlled by the IMF.

See also:  CFR Global Governance Program


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Filed under Civil Rights, Economy

Power Play

imagesWe just ran Jeremiah’s piece on the war with China, and this brings up a general observation.  North Korea’s provocations are not down to one wild and crazy dictator.  Terrorists do not attack America because they just plain hate us, or because of Palestine, or – despite what Safari Montage says – because of our own poor decisions.  This is a child’s view of history.

Geopolitical actors have definite plans, based on power.  If you’re not clear on this, read Machiavelli – or Kissinger.  America has real enemies, and they want power.  They want control of resources, like land, food, energy, and people.

American hegemony lasted about 100 years, depending on how you count it.  The British Empire lasted about 200 years.  Suppose you were the leader of a nation or a movement.  Wouldn’t you like to have 100 years of world domination?  Could you play an inside game for 50 years, to get 100? Could you bankroll some zealots to fight your war?

The next time you hear we have been provoked by some madman or some “splinter group,” look for the hand pulling the strings.  This goes for the crazies in Washington, too.  No one is just crazy.

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Filed under Foreign Policy

Breaking the Buck

In 1992, George Soros broke the Bank of England.  This is hailed as the greatest currency trade of all time.  Of course, it was not so great for England.  The pound fell by 30% over four months, and England had to drop out of the Exchange Rate Mechanism (ERM).  Soros is estimated to have netted $1 billion on the trade.

Jeremiah wonders if a modern-day Soros might not be planning an attack on our own inflated currency.  Soros has stated that a new world currency must replace the dollar.  Chinese banks are working to replace it with the yuan, and they have also asked the IMF to designate their Special Drawing Rights (SDR) as the world’s supreme currency.

Because SDRs are denominated in several national currencies, no single currency would enjoy an unfair advantage.

So, what would a speculative attack look like?  First, you need a thesis – some anomaly that is open to arbitrage.  In England’s case, it was the ERM.  When they say Soros “broke” the Bank, this currency peg is what broke.

America enjoys exactly such an anomaly.  Because the dollar is the world’s reserve currency, we are able to fund our national debt below market rates.  This makes American bonds a likely target for short sellers.  The thesis would be, “given America’s debt problems, bond yields should be 7%,” or, “the dollar should be worth fifty yen,” or both.

Next, you need another currency to trade long.  Helpfully, the IMF has just designated two new reserve currencies – the first since the Euro was created.  Any trader can now take a  speculative position in Aussies versus the dollar.

This brings us to the final requirement – a trigger.  You must launch the attack at a key point, and stampede other holders – like the Bank of China – into dumping their reserves.  Note that while the Fed can bid bonds up, they cannot simultaneously protect the dollar.  Our epic national debt is a fundamental weakness, and the thesis for an attack.

The trigger could be any event that spooks the bond market – a war, a downgrade, a default, or a weak bond auction.  The event could also be orchestrated.   Keep an eye on the next bond auction, January 10.  Happy New Year!

See also: Soros Convenes ‘Bretton Woods II’

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