Sunday, May 9, 2010

NATO in Russia

On the anniversary of the defeat of Nazi Germany, NATO forces joined Russian forces in a parade in Red Square. This is highly unusual and upset many in Russia. Imagine having 11,000 Russian and Chinese troops marching in front of the White House to celebrate the defeat of Germany. That is a lot of foreign troops.

March in Russia

New Currency

You might find this video interesting. It has the Russian president discussing and showing a new one world currency to be used in addition to regional currencies.

Ooohhh, new money

Now, you might not understand what the impact of a single currency is. I will attempt to explain. It allows an international body, such as the UN or the World Trade Organization or most likely the World Bank to set the rate for certain goods and services. You might want to investigate the concept of a Value Added Tax.

If we have a single international monetary standard then the question of valuation is critical. Is one hour of physical labor by an American equivalent to that of an Argentinian? We don't get paid the same. What occurs when you have an international minimum wage?

I hope you begin to understand what the impacts of a "standardized" currency are. It will redistribute wealth. It leads towards making all live by the same standards, brings down the west and up the third world. On one level this is probably the right thing to do; but, not in this manner.

A standardized currency does not result in a standardized price for goods. The cost of production is not the same for all countries because of technology, transportation and availability of resources. This is to say that countries with higher technology and more resources will be able to build products cheaper; but, the workers will get the same pay. The extra goes to the companies and governments. Get it?

This may all be too abstract for most people. I apologize and will attempt to simplify. A standardized valuation of all currencies means that everyone loses unless they are the people who own everything already.

You will see a major push for a new "reserve currency", it has already begun. It will be an international currency and regional currencies values will be determined by it. The new currencies will be needed to stabilize the international monetary crisis. In creating their valuation, international debt will be lessened, this is the cookie. Sort of like starting over with a clean slate. America will love it because of our multi-trillion dollars of debt and so will every other country because of theirs.

UPDATE

After writing the above I was reading a newspaper from Tokyo. In the opinion section was an interesting article regarding the Euro. It said that in order to have a successful shared currency, they should have a shared policy on taxes and closer coordination of police. LOL. Read the article and understand the next step after having a regional currency.

The real Greek crisis


It is all so amusingly intended to prod people into riots. Worked on the Greeks, consider the tea party movement here. The news is fed to you, you think you get it and instead find out that the choice of moves you thought you had was wrong. We are fed our choices and want to be on the winning side rather than do right. If we make our choices based on what we want more rather than doing right, we will always do wrong.