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| Joined: | Mon Nov 21st, 2005 |
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The link will be a voice from China as told by an English publisher, author, and reporter, whatever. Before linking the link and quoting the link and then commenting on the quotes from the link I am going to repeat Joe's Law, then report the relevance of Joe's law to the topic title and to the link as yet to be linked. I will also pose one question to task the reader with a thought experiment before finally arriving at the link.
Joe's Law states:
Power produced into a state of oversupply reduces the price of power while purchasing power increases because power reduces the cost of production.
China is where lots of capital is flying from the U.S.A. to that land. Capital in various forms is powerful, capital can purchase things, capital can be employed to produce things such as electric cars and solar panels, to name just two things that capital can be employed toward production, and employed toward purchasing other things in exchange for the capital flying from the U.S.A. to China.
China is where there is a scarcity of jobs and an abundance of people who are willing to work for subsistence wages for those jobs, and China is where the subsistence wage earners pay taxes to subsidize solar panel production and electric car production to name just two things that Chinese tax money purchases. Labor rates are low due to the current scarcity of jobs, the current abundance of people willing to work for subsistence wages, and due to other less relevant factors such as the almost total control over the supply of legal money used by the Chinese people. The end result will be a much greater capacity to produce solar panels and electric cars, to name just two things that China is producing as capital flies from the U.S.A. to China, and as capital flies from other places to China.
Will anyone buy those solar panels and electric cars, is there a demand for power producing products, power saving products, and what will be the quality of these products, and finally what will be the cost (the price) of these products?
The question relevant to the topic and the link is to ask finally: which currency will be used by the people purchasing the millions of solar panels and the millions of electric cars flowing from China to the Chinese people, the people in the U.S.A. and the people elsewhere around the Globe?
Here is the thought experiment question before linking the link:
What would happen if every bank selling money (loaning money)to anyone worldwide required monthly payments paid back to the bank to be denominated only in the highest value currency whichever that may be on the date of the payment?
If that question is not well understood by the reader who participates in this thought experiment, if there are any questions concerning the thought experiment question: I can answer the questions and re-write the though experiment question, or I can employ will power toward resolving any miscommunication whatsoever.
Here is the link:
http://www.marketwatch.com/story/china-repeats-call-for-new-reserve-currency
Here is a quote from the link:
LONDON (MarketWatch) -- A U.S.-China détente over the role of the dollar in international monetary system was called into question Friday as China's central bank repeated its assertion that a new global reserve currency is needed.
"To prevent the deficiencies in the main reserve currency, there's a need to create a new currency that's de-linked from the economies of the issuers," the People's Bank of China said in its annual financial stability review, according to a report by Bloomberg News.
In an apparent reference to the dollar, the review said the domination of the international monetary system by one currency was a serious defect, according to Reuters.
The report reiterated an essay written in March by People's Bank governor Zhou Xiaochuan urging the creation of a "super-sovereign" currency that would presumably take the dollar's place as the primary reserve currency. Zhou had called for an expanded role for the International Monetary Fund's special drawing rights.
Did anyone try out the thought experiment? Does anyone see a problem with the power to create the peoples money and do with the people's money what that power dictates on any given day?
Are the readers stumped, stupefied, and did the link, the question, and world affairs gone completely over the reader's heads, or is it just a matter of convenience to pick and choose what one likes to read, to fill their minds, to process, to employ, while disregarding the rest?
I will go on writing nonetheless.
If all the banks in the world were to demand payment on loans only in the most valuable currency of the day there would be an end to the current money monopoly power as that power dictates what is or what is not the money that will be used by the people who demand money, use money, and pay for money.
If someone prefers to ignore that fact, or if someone considers that fact to be less than accurate, then someone will either be inspired to discuss or not discuss the topic, the presentation of facts, and the perception of reality can move closer toward a more accurate one.
Or not.
Assuming as I do, based upon the available data passing my notice, that no one will respond to the thought experiment, as if thought itself has been weaned from the genetic pool, I'm going to go on writing just a bit more on that though experiment.
The principle of competition would regain power if every bank in the world decided to enforce payment of loans only in the highest value currency at the time the payment was paid by the borrower. Each borrower would gain a higher sense of urgency for having his own debts paid in the highest currency of the day without which the exchange rate is a net loss to the individuals who work for peanuts and are taxed in gold.