If it were as simple as it sounds, then savvy bankers would be taking the less obvious contrarian side of the issue. Instead, they are backing off with defensive tactics, hoping to stall the elephant in the room... fiat money.
If you've been watching the trading of ETF's the obvious should be clear. No longer is the world on an upward path of production and wealth, but it's into a period of consolidation to balance high expectation and wild optimism with the reality that we're dealing with today's dollars, but spending tomorrow's dollars.
One has but to look at emerging markets, to see that the bets placed on economies that are moving into the world economy... that these bets are now facing the true rate of expansion. that the bonds that were issued in expectation of high returns, have now reached junk bond status. Can anyone rationalize bond rates of 10% to 20%... with real growth? Look at Russia, Venezeula, Brazil, Ukaine and Columbia... and see the risk growth over the past several years. Then look at investment advisors... to see the recommendations. Instead of buy and hold, a frantic drive into the possibilities of ETF profits.
Follow up on that with where the value of the trading sits. The actual dollars, and not the marginal rates. Naturally, in the banks... and more specifically the central banks.
With profits being made on the basis of infinitesimal changes in relative currency valuations, the strength of a shaky structure inevitably rests with propping up the underlying structure. With true value resting anywhere but in the banks themselves, structural stability is endangered.
A simplistic view of the reasons for the possible or proposed changes to the free flow of actual currency. A possible time bomb in the financial structure of the US.
Ultra simple... Why do you suppose truckloads of dollar bills are not allowed transit between countries?
My take from reading the 2010 article in my last post. Excerpt:
As far as we know the 'main users of currency' are not only shady criminal types. Certainly both governments and banking cartels everywhere would love nothing more than to implement this crypto-fascist proposal under the guise of 'hampering criminal activity'. In reality it would destroy all vestiges of financial privacy, by making every financial transaction traceable for the bureaucrats. In addition it would deprive citizens of an important right – the right to remove their savings from the banking system.
It would mean that in the event of a financial crisis like the one in 2008 that nearly crashed the system, people would no longer have the choice of withdrawing their money from the system. They would sink or swim with the banks. We would recommend saying 'thanks, but no thanks' to that idea, even though it is quite clear that the government will bail out the big banks no matter what. The problem is that people relying on government promises to this effect have been left stranded with their savings utterly destroyed too many times in history to make such an approach even remotely acceptable. Just ask the citizens of Argentina, who were subjected to a grueling confiscatory deflation when push came to shove.
