Phoenix currency

GET READY FOR A WORLD CURRENCY

Consider the title page of The Economist in 1988, (9 jan. 1988) presented above, which insinuated another world money and noticeably included “2018” on the spread. Most realize that the financial world often arrange things decades ahead of time. The euro currency is such a case.

“THIRTY years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same world currency.”

The Rise of the Phoenix world currency will occur from the ashes of national fiat currencies ie. destruction of fiat currencies via hyperinflation. “Phoenix” is of course a metaphor and an occult symbol. Out of the destruction, the ashes of the old, the New will rise like a Phoenix … But first the old must burn!

…The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. In time, though, its value against national currencies would cease to matter, because people would choose it for its convenience and the stability of its purchasing power……The phoenix zone would impose tight constraints on national governments. There would be no such thing, for instance, as a national monetary policy. The world phoenix supply would be fixed by a new central bank, descended perhaps from the IMF…

…Governments are far from ready to subordinate their domestic objectives to the goal of international stability. Several more big exchange-rate upsets, a few more stockmarket crashes and probably a slump or two will be needed before politicians are willing to face squarely up to that choice…

 

World Currency - The economist

Who is behind the Economist? Well, it’s owned by the Economist Group which itself is owned by some rather interesting characters …
https://en.wikipedia.org/wiki/Economist_Group

The Economist Group is owned by the Cadbury, Rothschild, Schroder, Agnelli and other family interests as well as a number of staff and former staff shareholders. Pearson PLC held a 50% shareholding via The Financial Times Limited until August 2015. At this time Pearson sold their share in the Economist. The Agnelli family’s Exor paid £287m to raise their stake from 4.7% to 43.4%, while the Economist paid £182m for the balance of 5.04m shares which will be distributed to current shareholders.

The Economist Group is headquartered in the City of Westminster, London, England, and has offices worldwide, including in Brussels, Belgium, Frankfurt, Germany, Geneva, Switzerland, Paris, France, Dubai, United Arab Emirates, Johannesburg, South Africa, Hong Kong, mainland China, Singapore, Tokyo, Japan, India, New York City and Washington, DC in the United States.

The Economist Group’s principal activities are magazines, newspapers, conferences and market intelligence.

Read the entire article by clicking this link:
http://documents.mx/download/link/get-ready-for-the-phoenix-economist-article-1988

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-It seems the link has recently been removed and is no longer accessible, so we placed it here to download:
https://the.maier-files.com/download/articleeconomist1988getreadyforthephoenix-pdf



Excerpt
THIRTY years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency. At the beginning of 1988 this appears an outlandish prediction. 

Governments are far from ready to subordinate their domestic objectives to the goal of international stability. Several more big exchange-rate upsets, a few more stock-market crashes and probably a slump or two will be needed before politicians are willing to face squarely up to that choice. This points to a muddled sequence of emergency followed by a patch-up followed by emergency, stretching out far beyond 2018 – except for two things. As time passes, the damage caused by currency instability is gradually going to mount; and the very tends that will make it mount are making the utopia of monetary union feasible.

Te biggest change in the world economy since the early 1970’s is that flows of money have replaced trade in goods as the force that drives exchange rates. as a result of the relentless integration of the world’s financial markets, differences in national economic policies can disturb interest rates (or expectations of future interest rates) only slightly, yet still call forth huge transfers of financial assets from one country to another. These transfers swamp the flow of trade revenues in their effect on the demand and supply for different currencies, and hence in their effect on exchange rates.

The phoenix zone would impose tight constraints on national governments. There would be no such thing, for instance, as a national monetary policy. The world phoenix supply would be fixed by a new central bank, descended perhaps from the IMF. The world inflation rate – and hence, within narrow margins, each national inflation rate- would be in its charge. Each country could use taxes and public spending to offset temporary falls in demand, but it would have to borrow rather than print money to finance its budget deficit. With no recourse to the inflation tax, governments and their creditors would be forced to judge their borrowing and lending plans more carefully than they do today. This means a big loss of economic sovereignty, but the trends that make the phoenix so appealing are taking that sovereignty away in any case.

Preparing the way for the phoenix will mean allowing and then actively promoting the private-sector use of an international money alongside existing national monies. That would let people vote with their wallets for the eventual move to full currency union.

The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. In time, though, its value against national currencies would cease to mater, because people would choose it for its convenience and the stability of its purchasing power. The alternative – to preserve policymaking autonomy- would involve a new proliferation of truly draconian controls on trade and capital flows. This course offers governments a splendid time. They could manage exchange-rate movements, deploy monetary and fiscal policy without inhibition, and tackle the resulting bursts of inflation with prices and incomes polices. It is a growth-crippling prospect. Pencil in the phoenix for around 2018, and welcome it when it comes.

Phoenix a new World Currency …

 

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