Sunday, March 15, 2009

U.S. dollar replaced by ... digital gold?

U.S. dollar replaced by ... digital gold?

When the dollar collapses, digital gold as a private bank-managed currency may replace it for international transactions, Jerome Corsi's Red Alert reports.

Digital gold is a form of electronic market backed by gold storage. Private clients deposit gold or buy gold reserves from the digital gold bank.

Private clients then utilize digital gold accounts to make or receive international payments. Payment values are determined by the price of gold backing transactions.

Globalists are now promoting digital gold as a private-bank solution to the potential devaluation of fiat currencies.

"Ironically, the digital gold market reflects increasing concern in international foreign currency markets about whether major currencies, including the dollar and the euro, will survive the current global financial meltdown," Corsi wrote.

"A key concern is that the Obama administration's multi-trillion dollar deficit spending could cause the dollar to collapse on world currency markets since Obama has no alternative but to finance federal budget deficits by instructing the U.S. Treasury to sell debt securities, largely to foreign nations such as China, Japan and the petrodollar nations of the Middle East," he continued.

Private-bank digital gold is a move away from traditional fiat currencies issued by nation-states, such as the dollar, where there is no backing by gold or silver, and the currency has a floating value determined by world currency exchanges.

The idea surfaced in a January 2007 article in the London Financial Times by Benn Steil, a senior fellow and director of International Economics at the Council of Foreign Relations.

Steil has consistently argued that the dollar as a nation-state currency is outmoded, and that a regional currency should replace the dollar on the way to a one-world currency.

"Gold banks already exist that allow clients to make and receive digital gold payments – a form of electronic money, backed by gold in storage – around the globe," Steil wrote.

He noted the digital gold business "has grown significantly in recent years, in tandem with the dollar's decline."

1 comment:

Mark Herpel said...

Private digital gold currency has been popular for over 10 years now. I pay bills each month using digital gold.

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