The Federal Reserve Gold Certificate Ratio (FRGCR) appears to be the only real solution to the mother of all crises. Currency and financial stability will only come by placing a "stake in the ground". The FRGCR provides the stability needed. Businesses will not make long term investments without some stabilization in the financial system. Trust is eroding on a daily basis and world leaders have not come to an agreement on the solution. The U.S. Dollar was backed by gold for nearly 30 years which provided global stability of currency markets. Dollars were accepted around the world as payment for goods and services. The current destabilization is aggravated by the fact that all global currencies are fiat currencies without any backing by gold.
The "Currency Wobble" is like a spinning top and as its velocity slows down, the equilibrium is replaced by a wobble ultimately resulting in failure. We may not be at the edge, but I can see if from here. Stability is what is needed. By devaluing the U.S. Dollar to a specific supported price per ounce of gold, the globe could then begin stabilization. China and Russia have been increasing their gold reserves. Iran has been trading paper assets for gold as well.
The Federal Reserve is already devaluing the U.S. currency by printing excessive amounts of U.S. Dollars in response to the bailout requirements. The line for the Fed’s begging bowl is increasing. Credit card companies are becoming "banks" to get their number for the line. The "little 3" automakers want $50 billion without strings attached. Their management is playing Russian roulette with 3 million jobs. Toyota began its Prius project in the 90’s but GM was so short-sided in its world view of energy demands, it was busy investing in gas guzzlers. America’s dominance in business appears to be dying a slow death. We are losing our "edge".
The G20 met this last weekend to solve the global financial crisis. It appears that nothing much happened at the summit. I imagine the competing super egos at the meeting were busy attempting to control the outcome with little or no consensus. This crisis will not be solved without pain. The opiate of gain promoted this addiction to a quick and easy buck. The very people who are attempting to solve the crisis benefited from the profits made in the crisis. You don’t expect them to clean house do you?
There was an article making its way through the Internet concerning a new gold standard. It suggested that a currency devaluation of 10 to 1 take place and if you had $1,000 of the old currency, you would be given $10,000 of the new currency. This would immediately cause everyone to have more money to spend. All creditors would take a 90% writedown on their loan portfolio. I’m sure they would lobby against this plan. If their loans did not depreciate in value then the revaluation would be of no consequence. On the other hand if the Federal Reserve marked the U.S. Dollar to gold at a ratio of $3,000 per ounce, global stabilization would begin to occur. Why $3,000? That is a rough estimate of gold held by the U.S. relative to its current balance sheet. If the Fed continues to print money in reckless abandon, the stabilization price could hit $5,000. This would be a windfall for those holding gold but that is a small percentage of the population of the world.
In about 49 months we will be at December 21st, 2012. The Long Count Calendar of the Ancient Mayans ends on December 21st 2012. There isn’t much information regarding what the Mayans thought would occur in 2012, but the consensus of opinion is that there will be great change. To some people this means a positive, spiritual change. Could this be tied to the "mother of all crises" we are currently dealing with? Could this be the culmination point of man’s current view of control and exploitation being replaced by Love?