When there is such a tremendous amount of debt that eventually it becomes impossible for the world to pay back, there is an economic solution which involves resetting the value of each of the world currencies. This is one of the signs of the new age to come. Here is a recent article that discusses the reality of such an event.
“It has been rumored for quite some time that the economic powers in the world, namely the Bank for International Settlements, The International Monetary Fund, and the World Bank have been working closely with most of the worlds countries on an economic reset.
The idea behind the reset is to prevent a complete collapse of the banking industry worldwide. When one calculates the amount of debt in the world today, the instability of the whole system is obvious.
So the main components of a reset will consist of a global currency revaluation, a new gold trade settlement system, and improved banking regulations to increase a banks assets and decrease their liabilities. The Bank for International Settlements has been slowly and quietly implementing these new regulations, Basel 1, Basel 2, and Basel 3. So banks decreasing their liabilities (less leveraging) means a contraction or reduction in the credit supply.
Since credit is another way of saying debt, we can reason that the plan is to have less debt in the world economy. So what happens when every dollar in circulation is a debt dollar? How do you reduce debt without decreasing economic growth?
Christine Lagarde, Managing Director of The International Monetary Fund, speaking from Nairobi today, said that they will be revising upward their forecast on global growth. This new forecast will be made public in 3 weeks. She stated that it was premature to say anything more.
It was only this past October that the I.M.F. issued their last global growth forecast and it was downward for 2014. So what has changed in the last 3 months for the I.M.F. to revise the forecast upward?
If the plan is less leverage, how can we expect growth when the system of money creation is a debt based system? We can micro analyse endless charts and money velocity forever. The fact is our money creation method is debt based and debt is increasing at alarming rates. So what gives?
A global currency revaluation is one of the main components of an overall macro economic reset. The consensus is that the world’s currencies will become partially asset backed and will be revalued to reflect each countries capacity to produce and bring those assets to market. In essence, it will be a bastardized version of fiat currencies and commodity currencies……”
Read more @ http://philosophyofmetrics.com/2014/01/08/is-the-international-monetary-fund-hinting-about-an-economic-reset/
