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Source link: http://archive.mises.org/9661/update-the-prophetic-dr-hoppe-on-the-rise-of-the-phoenix/

Update: The Prophetic Dr. Hoppe on the Rise of the Phoenix

March 23, 2009 by

Re The Prophetic Dr. Hoppe on the Rise of the Phoenix: today’s Drudge Report reports: BEIJING TO PITCH NEW GLOBAL CURRENCY; DUMP DOLLAR.

{ 11 comments }

Keith March 23, 2009 at 10:39 pm

EWWW!!

The Chinese want to replace the dollar reserve system with something possibly worse. Something they credit to Keynes.

What is the matter with these people? Keynes got us into this in the first place! Of course since the fellow who suggested it is part of a central bank there is no real surprise there….but still.

anon March 23, 2009 at 10:52 pm

If this were to occur… what would it mean for the demonetization of gold, and the existing manipulation of gold markets?

Mike March 23, 2009 at 11:55 pm

The second paragraph of this report is completely contradicted by the third, and rest of the article. It makes you wonder, if everything after the second paragraph were simply made up by FT partisans of IMF.

Furthermore, the assertion that China has no other choice than to keep its reserves in US dollars, being entirely preposterous, does indicate the FT shilling for the one world order maniacs.

The second paragraph is clearly describing a commodity money such as gold and silver coin.

Moving $2 T to the gold market supply of 4 billion oz. would add at most $500 to the price; but most importantly pave the way for clear sailing ahead.

Perhaps there is something to what he says about it taking courage (to imagine the effects of this on the many trillions of dollars now flying around).

Take this, for sending a carrier destroyer after a fishing boat.

Geoffrey S. March 24, 2009 at 2:18 am

I’m sure the Fed wouldn’t object to buying those reserves if China doesn’t want them. They already purchased $300 billion of U.S. debt recently.

Kalim Kassam March 24, 2009 at 3:17 am

Looks like the Russians are on board as well: http://www.themoscowtimes.com/article/600/42/375364.htm

jeffrey March 24, 2009 at 7:44 am

I’ve always looked at a single world fiat currency as the worst of all worlds, but now I’m not so sure. How could it really be enforced? Maybe it would make more room for alternative market-based currencies than the present system. And it is hard to argue that it would be more inflationary than the dollar at this point. The worst possible system is the one we have right now.

Bruce Koerber March 24, 2009 at 8:52 am

Apolitical Political Commentary!
Tuesday, March 24, 2009

Is China A Lapdog? Please Don’t Lose Face!

How do you say in Chinese “Like a good socialist I cannot let the market decide the medium of exchange?”

One way is to praise Keynes!

Another way is to surrender monetary control to the International Monetary Fund!

The Chinese leaders are acting just like the ego-driven interventionists everywhere else. They are proposing destruction of the economic future instead of facing the necessarily painful corrections now. China should just ‘bite the bullet’ and take its losses that are the result its ill-advised buying of the debt of the unConstitutional coup in the United States.

China is afraid of ‘losing face’ but it should allow the unConstitutional coup to ‘lose face!’

Otherwise China will ‘lose face’ to an even greater extent by being seen as the little puppydog being lead on a leash by the greatest economic terrorists the world has ever seen.

J Cortez March 24, 2009 at 9:42 am

These idiots can do whatever they want. They can create any fiat currency that appeals to them, but it doesn’t matter. It might take years, but in the end, they will fail. History has shown this to be true.

Geoffrey S. March 24, 2009 at 2:13 pm

I believe it was Murray Rothbard in MES who said that if a one world fiat currency failed we would be in a much worse position than national fiat currencies failing. This is because of the money regression theorem and the fact that a new medium of exchange would have to emerge from barter. If a national currency fails you can just peg to another national fiat currency.

Mike March 24, 2009 at 5:02 pm

We know it will fail, and the sooner the better. The terms of barter are not dispensed with just because a money is introduced and adopted; they are extended and refined.

In the wings, ready and able, are the electronic gold and silver vault instantaneous payment mechanisms which are very efficient at rapid and secure settlement of transactions of any amount, down to the tiniest fractional weight.

These systems are already working successfully, especially in on line and ATM transactions. Equal or greater success should attend the expansion into daily purchase and sale transactions, — and wages, if permitted by legal tender.

If this be regression, let’s make the most of it.

George March 24, 2009 at 10:10 pm

Moving $2 T to the gold market supply of 4 billion oz. would add at most $500 to the price

The largest pile of gold on the planet is held by the US (around 8000 tons or 256 million oz) and is only worth around 260 billion at current prices.

A $500 jump (50% increase) wouldn’t help in finding someone with a pile 8 times larger — let alone someone who would sell it to you for a pile of US bonds.

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