How the AMERO Will Change Our Fu­ture

Trillions - - Content - By Tim Lon­car­ich

What if there was no short­age of money and ev­ery­one had at least enough to sat­isfy all of their ba­sic needs while still per­form­ing a use­ful role in so­ci­ety?

What if there was enough money to not just con­struct and main­tain in­fra­struc­ture but to build new, advanced, in­tel­li­gently de­signed sys­tems so that ev­ery­one could en­joy car­bon-free trans­porta­tion and en­ergy and have clean wa­ter, fresh healthy food, a com­fort­able home and ac­cess to the best ed­u­ca­tion and health care?

What would that look like?

The idea sounds like a utopian fan­tasy, doesn’t it? What if it were ac­tu­ally pos­si­ble? Could we al­low our­selves to con­sider such a thing?

To con­tem­plate such a pos­si­bil­ity, we have to change the way we think about money and be­gin to un­der­stand what money re­ally is and where it is headed in the near fu­ture.

For some, the re­al­ity of money and its likely fu­ture may be sur­pris­ing.

The His­tory of Money

Money is a store of value that has taken a lot of dif­fer­ent forms through­out hu­man his­tory.

For most of hu­man his­tory, peo­ple just traded the things they had for the things they needed, and it wasn’t un­til about 600 BC that the first cur­rency was created. For a long time, money in most coun­tries con­sisted of pre­cious met­als in the form of coins, and it took un­til 1161 for the first pa­per money to be printed. In the 1100s and 1200s, the Knights Tem­plar de­vel­oped the first banks, checks and money trans­fers.

In the Mi­crone­sian Yap Is­lands, money con­sisted of large round stones.

In 1860, Western Union started tele­graph money trans­fers – a ser­vice it continues to sup­ply to­day through the In­ter­net.

The first credit card was in­tro­duced in 1946.

Through­out his­tory, money was of­fi­cially con­vert­ible into an­other com­mod­ity. The U.S. dol­lar was con­vert­ible to gold from 1879 un­til the Great De­pres­sion, when Pres­i­dent Franklin D. Roo­sevelt banned pub­lic

own­er­ship of gold in 1933 and peo­ple were re­quired to sell their gold to the govern­ment at $20.67/ounce. How­ever, the dol­lar was still tied to gold and the govern­ment de­clared the value of gold to be $35/ounce, but peo­ple couldn’t con­vert dol­lars to gold. That rate per­sisted un­til Pres­i­dent Richard Nixon took the United States com­pletely off the gold stan­dard in 1971 and the value of gold and the dol­lar were al­lowed to be de­ter­mined by mar­ket forces.

Cur­ren­cies that are not backed by a phys­i­cal com­mod­ity but are deemed of­fi­cial na­tional cur­ren­cies are called fiat cur­ren­cies, and to­day most cur­ren­cies are fiat. How­ever, with deep con­cerns about the U.S. dol­lar, there are move­ments to once again tie cur­ren­cies to gold. Back in March, China made its yuan used in the pur­chase of oil fu­tures in the Shang­hai In­ter­na­tional En­ergy Ex­change con­vert­ible to gold and has been stock­pil­ing large amounts of gold for sev­eral years. Rus­sia has also been stock­pil­ing mas­sive amounts of gold, and it is be­lieved that it will back the ru­ble with gold if nec­es­sary to sup­port its value.

At the start of World War II, many na­tions in Europe sent their gold to the United States for safe­keep­ing. But fear of the po­lit­i­cal in­sta­bil­ity in the coun­try, the po­ten­tial col­lapse of the dol­lar and the dis­in­te­gra­tion of the Euro­pean Union has caused some of those coun­tries to re­cently repa­tri­ate their gold.

The U.S. Fed­eral Re­serve Sys­tem

At the in­fa­mous meet­ing of oli­garchs for ten days on Jekyll Is­land, Ge­or­gia in 1910, a scheme was hatched for them to seize con­trol of the Amer­i­can money sup­ply and in 1913 the United States pri­va­tized its cen­tral bank through the Fed­eral Re­serve Act af­ter a se­ries of fi­nan­cial crises were or­ches­trated by the same oli­garchs. They were able to gain con­trol over the Amer­i­can money sup­ply through their banks and the Fed­eral Re­serve Sys­tem (the Fed).

Amer­i­cans don’t own their own cur­rency. The U.S. dol­lar is owned by the Fed, which is owned and con­trolled by the largest pri­vate banks.

The Fed con­sid­ers it­self “an in­de­pen­dent cen­tral bank be­cause its mon­e­tary pol­icy de­ci­sions do not have to be ap­proved by the Pres­i­dent or any­one else in the ex­ec­u­tive or leg­isla­tive branches of govern­ment, it does not re­ceive fund­ing ap­pro­pri­ated by the Congress, and the terms of the mem­bers of the Board of Gov­er­nors span mul­ti­ple pres­i­den­tial and con­gres­sional terms.” It should be noted that man­age­ment of the Fed is ap­pointed by the Pres­i­dent. The chair and seven mem­bers of the Board of Gov­er­nors are nom­i­nated by the Pres­i­dent and con­firmed by the Se­nate.

Be­cause the Fed is con­trolled by the oli­garchy, it serves the in­ter­ests of the oli­garchy more than it does the tax­pay­ers. A good ex­am­ple of this is the cur­rent chair, Jerome Pow­ell, ap­pointed by Trump.

Pow­ell worked for The Car­lyle Group from 1997 to 2005. The no­to­ri­ous pri­vate eq­uity firm – per­haps the largest in the world – held its an­nual in­vestor meet­ing on Septem­ber 11, 2001, in which the guest of honor was a mem­ber of the bin Laden fam­ily: Shafiq bin Laden, half-brother of Osama bin Laden. At the meet­ing, Shafiq met with Ge­orge H. W. Bush and Sec­re­tary of State James Baker.

Af­ter the 9/11 at­tacks, mem­bers of the bin Laden fam­ily, in­clud­ing Shafiq, were flown out of the United States on Ryanair flight 441, a Boe­ing 727 with tail num­ber N521DB that was “char­tered fre­quently by the White House for the press corps trav­el­ing with Pres­i­dent Bush.”

The 9/11 at­tacks pro­vided the ex­cuse needed by the oli­garchy’s war in­dus­try to launch a for­ever war and divert vast sums of tax­payer money to the mil­i­tary from where much of it is redi­rected back to the oli­garchy.

De­spite a num­ber of con­gres­sional in­ves­ti­ga­tions and or­ders, the Pen­tagon still re­fuses to ac­count for more than $10 tril­lion in tax­payer funds that it has re­ceived.

In ad­di­tion, re­searchers have dis­cov­ered, Govern­ment Ac­count­abil­ity Of­fice (GAO) doc­u­ments that show tens of tril­lions of ex­tra money that flowed from the Fed to fed­eral agen­cies that was not bud­geted and that the agen­cies were not sup­posed to re­ceive and have failed to ac­count for. Tax­pay­ers have to won­der how much of that mys­tery money they are on the hook for and where the money re­ally went since it wasn’t spent on the ser­vices the agen­cies are sup­posed to pro­vide.

The Fed has never been au­dited by the U.S. govern­ment, and au­dit­ing by the GAO is ac­tu­ally pro­hib­ited by law. So, the Amer­i­can peo­ple don’t re­ally know what the Fed does on their be­half and how much fraud and theft is be­ing car­ried out be­hind the cloak of se­crecy that the Fed en­joys.

With the long his­tory of crim­i­nal ac­tiv­ity by the large banks who own the Fed, it is a safe bet that they have a lot to hide from the Amer­i­can peo­ple.

Nu­mer­ous con­gres­sional at­tempts have been made to change the law in order to al­low an au­dit of the Fed, and more than 75% of Amer­i­cans want it to be au­dited, yet leg­is­la­tion is some­how mys­te­ri­ously de­feated ev­ery time – of­ten by the same politi­cians who claimed to sup­port an au­dit.

The cur­rent bill – S.16 - Fed­eral Re­serve Trans­parency Act of 2017 – was in­tro­duced by Se­na­tor Rand Paul on Jan­uary 3, 2017, but re­mains stuck in the oli­garch-con­trolled Com­mit­tee on Bank­ing, Hous­ing, and Ur­ban Af­fairs.

Many peo­ple be­lieve that the Fed has done a great job man­ag­ing Amer­ica’s money sup­ply but fail to con­sider the mas­sive un-payable debt, grow­ing in­come dis­par­ity, de­cay­ing in­fra­struc­ture and in­creas­ing poverty and home­less­ness.

If the Fed is serv­ing the in­ter­ests of the peo­ple, why is the United States at the bot­tom of so many so­cioe­co­nomic and en­vi­ron­men­tal bench­marks for de­vel­op­ing na­tions when it is still one of the rich­est coun­tries and should be near the top?

The End of the Dol­lar as the In­ter­na­tional Cur­rency

While ev­ery sov­er­eign na­tion has the right to mint its own cur­rency, it can’t mint an­other na­tion’s cur­rency, and when do­ing busi­ness in­ter­na­tion­ally, it must use a cur­rency that is ac­cepted in­ter­na­tion­ally.

Un­til fairly re­cently, the dol­lar was the pri­mary in­ter­na­tional cur­rency, and even af­ter the cre­ation of the Euro, the dol­lar con­tin­ued to reign supreme.

The dol­lar has not just been the pri­mary cur­rency used for in­ter­na­tional busi­ness but has also been the main cur­rency for in­ter­na­tional debt.

Or­ga­ni­za­tions such as the U.s.-dom­i­nated World Bank and In­ter­na­tional Mon­e­tary Fund (IMF) have been some of the pri­mary sources for much of the in­ter­na­tional lend­ing in dol­lars, but many of the loans were en­gi­neered to en­rich Amer­i­can and Euro­pean in­ter­ests at the ex­pense of the bor­row­ing na­tions.

For decades, dol­lar loans were pushed onto coun­tries on the con­di­tion that the money be used to pay for Amer­i­can or Euro­pean con­trac­tors and sup­pli­ers at in­flated rates. So, most of the dol­lars did not stay in the bor­row­ing coun­try to pay off the loan and pro­vided lit­tle eco­nomic ben­e­fit to the bor­row­ing na­tion. The bor­rower then had to ex­port their needed com­modi­ties and of­ten cut fund­ing to es­sen­tial so­cial pro­grams in order to pay off the loans. So, in too many cases, the so called aid was a pri­mary driver of poverty.

Many coun­tries to­day con­tinue to be im­pov­er­ished to ser­vice for­eign debt that wasn’t nec­es­sary in the first place.

While the era of preda­tory lend­ing from the World Bank and IMF is mostly a thing of the past, the decades of ma­li­cious dol­lar loans, com­bined with the CIA’S black ops against those re­sis­tant to the U.S. dol­lar dom­i­na­tion, has driven many na­tions to seek al­ter­na­tives, and this is re­duc­ing the need for large amounts of dol­lars pre­vi­ously used for in­ter­na­tional loans.

One of the new fi­nance al­ter­na­tives is the China-dom­i­nated Asian In­fra­struc­ture In­vest­ment Bank (AIIB). Founded in 2014, the AIIB makes loans in cur­ren­cies other than the dol­lar and doesn’t re­quire its bor­row­ers to com­pro­mise the wel­fare of their cit­i­zens to re­ceive loans.

China’s new gold-backed petro-yuan is chal­leng­ing dol­lar-based oil mar­kets and will ul­ti­mately dis­place hun­dreds of bil­lions of dol­lars.

Trade be­tween Rus­sia, Iran, Pak­istan and China is no longer be­ing done in dol­lars.

The de-dol­lar­iza­tion of the world’s econ­omy will con­tinue to ac­cel­er­ate and ren­der large amounts of dol­lars sur­plus.

Too Much Debt – Too Many Dol­lars

In the United States and many other coun­tries, new money is created pri­mar­ily through debt. Banks are al­lowed to use frac­tional re­serve lend­ing to cre­ate new money by mak­ing loans for money they don’t have. The banks don’t print phys­i­cal money but just cre­ate deb­its and cred­its in a com­puter and – voila – new money ap­pears. Banks es­sen­tially have a li­cense to man­u­fac­ture money out of thin air, and when in­ter­est rates were near zero, they made a lot of very large loans and the money sup­ply and debt grew ex­po­nen­tially.

When it comes to U.S. dol­lars, there are sim­ply far too many of them, con­cen­trated in too few hands, with tens of tril­lions stashed in off­shore accounts and tril­lions more slush­ing around in the fi­nan­cial sys­tem.

Over the past few decades, bor­row­ing in the United States has re­placed sound eco­nomic man­age­ment as each suc­ces­sive ad­min­is­tra­tion loots ever more and more.

In 2017 the in­ter­est cost alone for just the fed­eral debt was $548 bil­lion – about one-third of the in­di­vid­ual in­come tax. This year it will be much higher as the Fed keeps rais­ing in­ter­est rates and the fed­eral debt climbs higher and higher. Most of the rest of in­di­vid­ual's fed­eral in­come taxes go to the mil­i­tary, which is the pri­mary cause of the debt and in­ter­est on the debt.

Just be­fore the United States gave con­trol of its money sup­ply over to the Fed, the fed­eral debt was only $2.8 bil­lion. To­day it is about $21 tril­lion, the high­est level of debt to GDP since it spiked for a few years af­ter World War II.

Be­cause Amer­ica can’t even pay the in­ter­est on its fed­eral debt with­out bor­row­ing more money, the United States must keep bor­row­ing more and more. Bor­row­ing costs are in­creas­ing as the Fed raises in­ter­est rates and as the U.S. debt be­comes less at­trac­tive to in­vestors and they de­mand higher re­turns. At the cur­rent tra­jec­tory, an­nual in­ter­est pay­ments will reach $1 tril­lion in the not-too-dis­tant fu­ture.

To jus­tify the U.S. debt, some point to other na­tions as hav­ing a higher debt ra­tio to GDP, and it is true that the United States has the world’s 14th-high­est ra­tio of debt to GDP and less than half that of Ja­pan. While there is no dan­ger of the United States de­fault­ing on its debt to­day, the fu­ture is a dif­fer­ent story.

Con­sid­er­ing that there is only a to­tal of about $3.6 tril­lion in ac­tive cir­cu­la­tion, it is ob­vi­ous that the fed­eral debt can’t be paid any­time soon – if ever – and with­out a fun­da­men­tal restruc­tur­ing of the U.S. govern­ment, the debt in­ter­est will ul­ti­mately cause a fail­ure of the Amer­i­can econ­omy be­cause it can’t pos­si­bly grow fast enough to keep pace with the debt cost.

The dan­ger of too much debt is not just at the fed­eral level. The IMF is just one of the or­ga­ni­za­tions that is is­su­ing warn­ings about the U.S. econ­omy and the in­crease in its in­ter­est rates. Its April 2017 Global Fi­nan­cial Sta­bil­ity Report warned that pro­jected in­ter­est rises could throw 22% of U.S. cor­po­ra­tions into de­fault.

Many states, counties, cities and in­di­vid­u­als are also car­ry­ing a very heavy debt load and have lit­tle wig­gle room. Many will de­fault as in­ter­est rates con­tinue to climb.

In­fla­tion, De­val­u­a­tion and Dis­par­ity

With the high level of in­debt­ed­ness at ev­ery level of the econ­omy, the in­crease in in­ter­est rates will cause more rapid in­fla­tion as the higher in­ter­est costs rip­ple through the econ­omy.

If the United States were not an oli­garchy, the vast wealth held by just 1% of the pop­u­la­tion could be used to pay down the debt and cir­cu­late in the econ­omy and raise the stan­dard of liv­ing for the other 99%.

How­ever, be­cause the United States is a cap­i­tal­ist oli­garchy, the rich keep get­ting richer and hoard­ing the wealth while most ev­ery­one else gets poorer be­cause their wages don’t keep pace with the in­fla­tion caused by the wealthy.

One of the dan­gers of all that money be­ing se­creted away in off­shore accounts is that the dol­lar is los­ing its po­si­tion as the in­ter­na­tional cur­rency and is de­clin­ing in value. At some point the peo­ple who own the

sur­plus dol­lars will see that their wealth is shrink­ing too much and will try to sell their dol­lars. To shield their wealth from the de­clin­ing dol­lar, they have al­ready been pour­ing their money into stocks, gold and real es­tate, but there is a limit to how much can be ab­sorbed that way.

With the mas­sive sur­plus of dol­lars scat­tered around the world and other coun­tries in­creas­ingly get­ting off the dol­lar, the sur­plus is grow­ing and the dol­lar’s real value can only con­tinue to de­cline – and the pace of this is likely to ac­cel­er­ate.

At some point the oli­garch herd will be suf­fi­ciently spooked and start dump­ing dol­lars onto cur­rency mar­kets.

Re­duc­ing the Dol­lar Sup­ply

The Fed cer­tainly knows that there are too many dol­lars, and it is re­tir­ing some dol­lars as bonds are paid off. While this will help shrink the dol­lar sup­ply, it is not enough. Tens of tril­lions of dol­lars need to be re­moved from the money sup­ply, but the mega-wealthy, who hold much of the money, aren’t go­ing to just give it up.

Is a Dol­lar Col­lapse In­evitable?

While there is gen­eral agree­ment that the dol­lar will con­tinue to weaken, a grow­ing num­ber of econ­o­mists and fi­nan­cial ex­perts have been warn­ing of the col­lapse of the dol­lar and a crash of not just the U.S. econ­omy but the world econ­omy.

Econ­o­mist Jim Rogers be­lieves that it is the as­tro­nom­i­cal debt that will cause this col­lapse. Econ­o­mist Richard Wolff points to the rot within the U.S. govern­ment and the fail­ure of the cap­i­tal­ist sys­tem when growth has reached its limit. Fi­nan­cial spe­cial­ist David Marsh claims that the dol­lar crash will be less se­vere and more like the one seen in the 1980s, when in­ter­est rates were 20%.

It should be re­mem­bered that most econ­o­mists are too my­opic and con­strained by ob­so­lete eco­nomic philoso­phies to be able to pre­dict sub­stan­tial eco­nomic changes. How­ever, an in­creas­ing num­ber of econ­o­mists are pre­dict­ing that when the dol­lar de­clines too much in value, it will ap­ply pres­sure on not just U.S. cor­po­ra­tions who do busi­ness in­ter­na­tion­ally but also on the rest of the world that uses dol­lars. The cost of im­ports in the United States will sky­rocket, and in­fla­tion will grow out of con­trol. De­faults on the mas­sive amount of pub­lic and pri­vate dol­lar debt will then trig- ger some of the $1.2 quadrillion in de­riv­a­tives, and an eco­nomic tsunami will sweep the planet.

For those who are op­ti­mistic and be­lieve that the dol­lar will some­how con­tinue to lead the world, it might help to con­sider the broader pic­ture.

FACT: The only way the United States can cope with its mas­sive debt in the fu­ture is with sub­stan­tial growth or se­vere aus­ter­ity.

The Trump ad­min­is­tra­tion is al­ready im­pos­ing some aus­ter­ity, but only on the 99% and only to make the 1% even richer.

In a nor­mal govern­ment, aus­ter­ity is in­tended to re­duce bud­get deficits and debt, but in the case of the United States, it is mas­sively in­creas­ing the bud­get deficit and debt.

As many U.S. fed­eral agen­cies are be­ing de-funded by the cur­rent ad­min­is­tra­tion and more money is be­ing shifted to cor­po­ra­tions, the wealthy and the mil­i­tary, where it is eas­ier to loot, there are grow­ing bud­get short­falls at the state and lo­cal lev­els and most tax­pay­ers are no longer will­ing to pay for these short­falls with higher lo­cal taxes.

As a re­sult, the debt and tax sys­tem is start­ing to fail in some com­mu­ni­ties as tax­pay­ers re­ject bond is­sues to borrow more money and raise taxes fur­ther. Im­por­tant in­fra­struc­ture projects and crit­i­cal so­cial pro­grams re­quired to sup­port eco­nomic well-be­ing are sim­ply go­ing with­out the nec­es­sary fund­ing, and the fu­ture costs to re­pair the ne­glect are be­ing mul­ti­plied with no fore­see­able way to crawl out of the holes be­ing created.

U.S. pro­duc­tiv­ity and com­pet­i­tive­ness are de­clin­ing, and there are se­vere la­bor short­ages in key in­dus­tries. Many com­pa­nies can­not ex­pand even if they want to be­cause the skilled work­ers are sim­ply not avail­able. At the same time, the flow of new im­mi­grant work­ers is be­ing dras­ti­cally re­duced and the un­doc­u­mented work­force is be­ing de­ported. This will fur­ther limit the abil­ity of the econ­omy to grow.

An ag­ing pop­u­la­tion will con­tinue to shrink the work­force and in­crease so­cial costs while re­duc­ing tax rev­enues.

Fur­ther au­to­ma­tion is go­ing to elim­i­nate many skilled and un­skilled jobs and the taxes that go with them. While some of the work­ers dis­placed by au­to­ma­tion could be re­trained for other jobs, many will re­main un-

suit­able or the re­quired train­ing will be too ex­pen­sive or take too long. Not ev­ery­one dis­placed by a ro­bot can be trained to be­come an en­gi­neer, doc­tor, chemist or other skilled worker, and many of those from re­tail ser­vice jobs won’t take jobs as con­struc­tion work­ers or fruit pick­ers.

The United States is un­likely to sig­nif­i­cantly re­grow its man­u­fac­tur­ing base for sev­eral rea­sons. One big rea­son is that it sim­ply can’t com­pete with other coun­tries that have vastly lower la­bor costs, greater ac­cess to raw ma­te­ri­als and more ef­fec­tive govern­ment.

The Trump ad­min­is­tra­tion's at­tempts to level the play­ing field by im­pos­ing tar­iffs on the prod­ucts of more com­pet­i­tive coun­tries means also re­duc­ing Amer­ica's ex­port mar­ket as those coun­tries re­tal­i­ate with their own tar­iffs. Im­pos­ing tar­iffs on raw ma­te­ri­als will make Amer­i­can prod­ucts even more ex­pen­sive and fur­ther re­duce needed ex­port mar­kets and do­mes­tic con­sump­tion.

Im­pos­ing sanc­tions on coun­tries that re­sist Amer­ica’s preda­tory for­eign pol­icy also re­duces ex­port mar­kets and drives the growth of for­eign busi­ness com­peti­tors. U.S. sanc­tions on Rus­sia and Iran have not just closed those mar­kets to Amer­i­can com­pa­nies but has driven the coun­tries to be­come more re­silient and in­de­pen­dent and build re­la­tion­ships with com­pa­nies in other coun­tries, fur­ther re­duc­ing Amer­i­can busi­ness ca­pac­ity and com­pet­i­tive­ness.

The U.S. em­braced wide­spread glob­al­iza­tion and en­joyed many of the ini­tial ben­e­fits, but is now suf­fer­ing the long-term con­se­quences. De-glob­al­iza­tion is not a vi­able op­tion for the U.S. and with­out ef­fec­tive pol­icy it will con­tinue to lose its global eco­nomic po­si­tion.

Amer­ica’s agri­cul­tural out­put will de­cline as cli­mate change be­comes more se­vere and mar­kets shift fur­ther to­ward or­ganic and non-gmo crops. In­creased au­to­ma­tion in agri­cul­ture will re­duce the few agri­cul­tural jobs re­main­ing.

The global mar­ket for Amer­ica’s oil and gas will start to de­cline soon as other coun­tries shift more rapidly to re­new­ables and more electric cars hit the road.

Amer­i­cans are no longer wealthy enough to sup­port a siz­able con­sumer and ser­vice econ­omy, and the “Ama­zon-iza­tion” of re­tail will con­tinue to elim­i­nate re­tail jobs.

When the United States lost its agri­cul­tural econ­omy to mech­a­niza­tion, it switched to man­u­fac­tur­ing; with the loss of man­u­fac­tur­ing to Asia, it then switched to a war-, con­sumer- and debt-based econ­omy and bor­rowed the money to sus­tain the stan­dard of liv­ing Amer­i­cans had grown used to but could no longer af­ford in re­al­ity.

Amer­ica’s largest in­dus­try by far is the war in­dus­try. Ex­pand­ing Amer­ica’s war econ­omy won’t work for long be­cause a war econ­omy cre­ates too many en­e­mies who stop buy­ing Amer­i­can debt and stop do­ing busi­ness with the coun­try. U.S. war-mon­ger­ing is al­ready re­sult­ing in a loss of busi­ness and loans from a grow­ing num­ber of coun­tries and re­jec­tion of the dol­lar as an in­ter­na­tional cur­rency. Mak­ing en­e­mies for the sake of war prof­its is in­cred­i­bly stupid and evil, and the con­se­quences of decades of en­gi­neer­ing war are now start­ing to come back to bite Amer­i­cans.

Cli­mate change cost the United States at least $300 bil­lion last year, yet the fed­eral govern­ment doesn’t be­lieve in cli­mate change and is not bud­get­ing money to pay for its dam­age or adapt to it. The mea­ger bud­gets for com­bat­ing the ef­fects of cli­mate change were quickly ex­hausted in 2017. As the costs con­tinue to in­crease where will the money come from to cope with the in­creased for­est fires, crop fail­ures, droughts, floods, tor­na­does and hur­ri­canes? Borrow it? The U.S. can't ex­pect the rest of the world to keep its sink­ing ship afloat for­ever.

With­out higher wages, the con­sumer econ­omy can't grow.

The stark re­al­ity is that with­out solid in­fra­struc­ture, an in­flux of skilled la­bor, ef­fec­tive ed­u­ca­tion, ac­cess to low-cost raw ma­te­ri­als and ex­port mar­kets, the U.S. econ­omy sim­ply can’t grow in a mean­ing­ful way.

So, how can the U.S. econ­omy grow enough un­der the cur­rent ad­min­is­tra­tion to sus­tain its debt if the lim­its of growth have al­ready been reached?

The monthly and quar­terly eco­nomic fig­ures from Wash­ing­ton that pur­port to show growth, of­ten re­ally show only in­fla­tion. In­fla­tion is not eco­nomic growth. Pump­ing bor­rowed money into an econ­omy and si­phon­ing it off to the 1% doesn't cre­ate real growth.

It is true that the tax cut on repa­tri­ated off­shore prof­its is pump­ing a lot of money into the pock­ets of stock­hold­ers of some of the largest com­pa­nies and that money will be used by the wealthy for big­ger man­sions, more jets, yachts, ex­pen­sive cars, jew­elry and art. Some of that will trickle down to the 99% and help de­lay the in­evitable eco­nomic train wreck for awhile.

The Fu­ture of the Dol­lar

The cur­rent eco­nomic sys­tem is de­pen­dent upon con­tin­ued growth in a fi­nite sys­tem that has hard lim­its. Ex­ceed­ing those lim­its will al­ways re­sult in col­lapse.

Once we get past the delu­sion of per­pet­ual growth we can look at the big­ger pic­ture and run the num­bers.

When we do that, it be­comes ob­vi­ous that if some­thing doesn't change we will soon start hit­ting im­mov­able bar­ri­ers. Given our his­tory, we are go­ing to hit the bar­ri­ers be­cause we and the sys­tems we have created can­not change quickly enough. And of course the peo­ple in con­trol of things are re­spon­si­ble for us hit­ting the bar­ri­ers in the first place.

The next big ques­tion is, what hap­pens when the United States can’t keep bor­row­ing the money to pay the ex­plod­ing in­ter­est on its sky­rock­et­ing, un­sus­tain­able and un-payable debt?

Beyond the ob­vi­ous bud­getary con­se­quences of the fed­eral govern­ment run­ning out of money, there is what hap­pens to the U.S. dol­lar.

Be­cause the value of the dol­lar is de­ter­mined to a great ex­tent by in­ter­na­tional mar­ket forces and there are tens of tril­lions of dol­lars be­ing held in off­shore accounts, a de­fault or even ap­proach­ing de­fault by the United States on debt ser­vice would end the coun­try's abil­ity to borrow more money and likely trig­ger a rapid de­val­u­a­tion as those hold­ing dol­lars seek to get out of the dol­lar at any price be­fore a col­lapse and cur­rency mar­kets are flooded with cheap dol­lars.

A credit freeze and rapid de­val­u­a­tion of the dol­lar would trig­ger much of the known and un­known de­riv­a­tives mar­ket, es­ti­mated at $1.2 quadrillion. This means cas­cad­ing bankruptcies of the largest com­pa­nies and mas­sive lay­offs.

Be­cause the dol­lar is deeply in­grained in the world econ­omy, a col­lapse of the dol­lar would have a domino ef­fect that would be vastly worse than was ex­pe­ri­enced dur­ing the Great De­pres­sion of the 1930s and the Great Re­ces­sion of 2007 (caused by the sub­prime-mort­gage scam, which was man­u­fac­tured by the same in­ter­na­tional bankers who con­trol the Fed).

Some be­lieve that the Great Re­ces­sion was de­lib­er­ately caused as a test run for a much greater en­gi­neered eco­nomic dis­as­ter com­ing in the not-too-dis­tant fu­ture. Money has long been used by those in power to con­trol the masses for their own ben­e­fit, and the cur­rent eco­nomic sys­tem has en­abled the rich to get richer and in­crease their con­trol around the world. The old joke “the golden rule is that who­ever con­trols the gold makes the rules” has been too true for too long.

Col­laps­ing the dol­lar could serve the in­ter­ests of those in power by cre­at­ing con­di­tions un­der which they can fur­ther con­sol­i­date their power – just as they did dur­ing the Great Re­ces­sion.

How the AMERO Could Change Things

While it is il­le­gal for cit­i­zens to mint na­tional cur­rency, in most coun­tries it is not il­le­gal for them to cre­ate and use vir­tual or dig­i­tal cur­ren­cies.

Re­cent tech­no­log­i­cal de­vel­op­ments make it pos­si­ble for in­di­vid­u­als and or­ga­ni­za­tions to cre­ate coun­ter­feit-proof dig­i­tal cur­ren­cies (based on cryp­tog­ra­phy) called cryp­tocur­ren­cies.

There are now more than a thou­sand dif­fer­ent cryp­tocur­ren­cies be­ing pro­moted. A few of them have real value, and some can be re­deemed for a wide range of goods and ser­vices and for hard cur­rency. How­ever, most ex­ist­ing cryp­tocur­ren­cies are un­suit­able for ac­tual com­merce on a larger scale due to their volatil­ity and lim­ited ac­cep­tance and so are used pri­mar­ily as in­vest­ment and trad­ing com­modi­ties.

In 1999, Dr. Herbert G. Grubel of Canada’s Fraser In­sti­tute pub­lished a white pa­per in which he ex­plored the po­ten­tial ben­e­fits of a North Amer­i­can mon­e­tary union and pro­posed a re­gional cur­rency named the Amero. The pa­per spawned years of con­spir­acy the­o­ries about a North Amer­i­can union, but the Amero was never of­fi­cially con­sid­ered and Obama ended of­fi­cial dis­cus­sion of such a union.

It is true that for the U.S. to com­pete with Asia and Rus­sia it needs Canada's nat­u­ral re­sources and Mex­ico's la­bor, but there is no way that cit­i­zens would sup­port such a union.

While a North Amer­i­can mon­e­tary union is not likely to oc­cur be­fore the dol­lar col­lapses, a North Amer­i­can dig­i­tal cur­rency called the AMERO is just about to be­come a re­al­ity, thanks to mod­ern tech­nol­ogy and the grow­ing need for an al­ter­na­tive to the U.S. dol­lar and ex­ist­ing eco­nomic sys­tem.

The AMERO will launch June 4th, 2018.

The AMERO is not like other cryp­tocur­ren­cies. It is de­signed specif­i­cally for com­merce and to be suit­able for govern­ment-to-busi­ness (G2B) and busi­ness-to-busi­ness (B2B) trans­ac­tions. It is cen­trally man­aged, accountable, se­cure, sta­ble and sus­tain­able.

90% will be given to govern­ment agen­cies, non-profit or­ga­ni­za­tions and for im­por­tant R&D. The grants to govern­ment agen­cies will be trans­par­ent and pub­licly re­ported. (Grants for anti-cor­rup­tion, se­cu­rity or other sen­si­tive pro­grams may not be dis­closed with full details.)

The AMERO is be­ing launched in the well-es­tab­lished G2B and B2B Bid Ocean/north Amer­ica Procurement Coun­cil (Napc)/tril­lions net­work, which al­ready reaches mil­lions of users. It is a nat­u­ral ex­ten­sion of the ex­ist­ing state and na­tional G2B/B2B por­tals created by the NAPC and given to the peo­ple.

The NAPC’S par­ent com­pany, Bid Ocean, was founded in 2001 and has been prof­itable ev­ery year and grown steadily and or­gan­i­cally. The AMERO is not a start-up and is not re­liant on any out­side fund­ing.

The AMERO is not in­tended to re­place na­tional cur­ren­cies but to func­tion as a par­al­lel and sec­ondary re­gional and in­ter­na­tional cur­rency.

Cur­rent eco­nomic and po­lit­i­cal con­di­tions ne­ces­si­tate a re­gional cur­rency. Mod­ern tech­nol­ogy makes it pos­si­ble for the cur­rency to be dig­i­tal. The cur­rent reg­u­la­tory en­vi­ron­ment makes it legally pos­si­ble.

Be­cause 90% of the AMERO will ini­tially be given as grants to govern­ment agen­cies, it will gen­er­ate the nec­es­sary govern­ment sup­port.

Be­cause hun­dreds of bil­lions of the AMERO will be given as grants to im­por­tant de­vel­op­ment projects and pro­grams, it will help fund pos­i­tive change with­out debt or the need for taxes to pay for debt.

As an in­ter­na­tional cur­rency, the AMERO will elim­i­nate the need for coun­tries to com­pro­mise their fi­nan­cial well-be­ing for na­tional cur­ren­cies such as the dol­lar, euro or yuan.

The AMERO is de­signed to be se­cure, sta­ble and sus­tain­able. It is not anony­mous and ev­ery buyer, seller, coin and trans­ac­tion will be au­then­ti­cated.

It is not suit­able for money laun­der­ing or sup­port­ing other crim­i­nal ac­tiv­ity.

AMERO and Taxes

The AMERO can greatly re­duce the need for in­come, prop­erty and sales taxes for sev­eral years be­cause it will pro­vide a new debt-free fund­ing source. This will en­able lo­cal govern­ment agen­cies to ei­ther tem­po­rar­ily roll back taxes or con­serve dol­lars from ex­ist­ing taxes and pay down debt or fund im­por­tant projects and pro­grams that would oth­er­wise not get funded.

When loans are paid off or paid down, the money pre­vi­ously paid in in­ter­est, prin­ci­pal and fees will stay in the lo­cal econ­omy and gen­er­ate greater pros­per­ity for the 99%.

There will cer­tainly be a limit to how much of the AMERO will be freely dis­trib­uted; oth­er­wise, it will cre­ate the same over­sup­ply prob­lems as the dol­lar. Avail­abil­ity will have to be bal­anced with scarcity and ac­cep­tance to en­sure a sta­ble value.

For busi­nesses and in­di­vid­u­als who use the AMERO, the tax­a­tion is­sue is still evolv­ing. At present, the U.S. govern­ment does not clas­sify dig­i­tal as­sets (dig­i­tal cur­ren­cies) as money, but prof­its from trad­ing in them are tax­able as cap­i­tal gains. So, it is most likely that for the fore­see­able fu­ture, AMERO prof­its would only be taxed when con­verted to a na­tional cur­rency. We are mon­i­tor­ing this is­sue closely and de­vel­op­ing so­lu­tions in case un­rea­son­able taxes are im­posed on the AMERO.

Over the long term, the AMERO may need to be taxed (as the dol­lar is now), but for sev­eral years, it will ac­tu­ally re­duce the need for tax­a­tion.

AMERO and Eco­nomic and So­cial De­vel­op­ment

A tem­po­rary debt-free source of fund­ing can be a huge game changer for ev­ery coun­try that ac­cepts the AMERO. For the long term, the AMERO can re­main in­ter­est-free, which will also pro­vide huge ben­e­fits and pre­vent the present dire eco­nomic cir­cum­stances.

With ef­fec­tive man­age­ment, the AMERO can help pay for ed­u­ca­tion, hous­ing, health care, in­fra­struc­ture, en­vi­ron­men­tal restora­tion and cli­mate-change adap­ta­tion as well as re­duce debt. At the same time, the in­creased eco­nomic ac­tiv­ity will cre­ate em­ploy­ment and ex­pand the tax base.

With suf­fi­cient ac­cep­tance, the AMERO can dras­ti­cally re­duce or elim­i­nate poverty where dol­lar aid had pre­vi­ously failed to make a suf­fi­cient im­pact.

Be­cause it is not yet con­vert­ible to hard cur­rency and the AMERO is not anony­mous it is not suit­able for money laun­der­ing, kick­backs, pay-offs or other el­e­ments of cor­rup­tion; as a re­sult, it will re­duce the po­ten­tial for cor­rup­tion and can be more eas­ily lim­ited to its in­tended pur­pose.

Be­cause the AMERO is a peo­ple’s cur­rency and can be used with­out govern­ment in­ter­fer­ence and bu­reau­cracy, the cor­rup­tion and in­com­pe­tence that con­trib­utes to poverty can be more eas­ily over­come.

As an in­ter­na­tional cur­rency in­tended pri­mar­ily for North and Cen­tral Amer­ica and the Caribbean, the AMERO will re­duce trade bar­ri­ers and in­vig­o­rate trade and de­vel­op­ment in the AMERO’S eco­nomic re­gion.

Us­ing the AMERO pro­vides nu­mer­ous and sub­stan­tial ben­e­fits to busi­nesses, in­clud­ing the fol­low­ing:

• con­ser­va­tion of cap­i­tal

• less need to borrow money

• re­duced op­er­at­ing cost

• greater com­pet­i­tive­ness

• new and bet­ter op­por­tu­ni­ties

• higher profit

• higher qual­ity and more loyal em­ploy­ees

Com­pa­nies who sign up now to ac­cept the AMERO will re­ceive up to 2,500 free AMERO plus match­ing AMERO for qual­i­fied trans­ac­tions for the first 90 days af­ter the launch. For some small busi­nesses, this could be a huge boost. For oth­ers, it is a good start to­ward greater suc­cess.

AMERO ven­dors are cur­rently listed in the AMERO di­rec­to­ries through­out the Bid Ocean/napc/tril­lions net­work, which is vis­ited by mil­lions of unique vis­i­tors each year.

Each ven­dor has their own page where they can dis­play their com­pany pro­file, logo, videos, brochures, cat­a­logs, etc.

An e-com­merce sys­tem will be on­line in the near fu­ture, which will make it eas­ier for buy­ers to pur­chase goods and ser­vices from AMERO ven­dors.

AMERO ven­dors will also be able to pro­pose and fa­cil­i­tate projects and pro­grams in their com­mu­ni­ties for grants.

When the AMERO ex­change is launched, em­ploy­ers can top-off their worker's pay with AMERO to im­prove their fi­nan­cial sit­u­a­tion.

AMERO and Il­le­gal Im­mi­gra­tion

When ap­plied to Cen­tral Amer­ica and Mex­ico, the AMERO will greatly re­duce the flow of il­le­gal im­mi­grants by im­prov­ing con­di­tions at home and fund­ing refugee fa­cil­i­ties out­side the U.S.

The rea­son why so many Cen­tral Amer­i­cans and Mex­i­cans leave their homes and risk their lives to reach the United States or Canada is be­cause they have no bet­ter choice. The poverty, crime and cor­rup­tion that drive them north can be mit­i­gated with debt-free fund­ing and the end of preda­tory lend­ing and po­lit­i­cal in­ter­ven­tion.

The AMERO is a peo­ple’s cur­rency and will re­main a peo­ple’s cur­rency that will be ef­fec­tively man­aged by a group of qual­i­fied ex­perts from di­verse back­grounds who will ul­ti­mately be elected by the peo­ple. While an AMERO Bank is planned, it will not be con­trolled by other banks, Wall Street, in­vestors or any govern­ment agency.

At present, poverty and sup­pres­sion of democ­racy in many coun­tries is a direct re­sult of in­ter­na­tional mon­e­tary pol­icy that re­wards gov­ern­ments who cre­ate debt and ex­port their na­tion's wealth to pay the

debt, and Amer­ica's for­eign pol­icy that dic­tates that it con­trol the govern­ment of ev­ery na­tion pos­si­ble to en­sure that they sup­port the prof­its of the Amer­i­can oli­garchy.

In his ex­plo­sive best­selling 2004 book, Con­fes­sions of an Eco­nomic Hit Man, John Perkins details how the western preda­tory fi­nan­cial sys­tem works:

“Eco­nomic hit men (EHMS) are highly paid pro­fes­sion­als who cheat coun­tries around the globe out of tril­lions of dol­lars. They fun­nel money from the World Bank, the U.S. Agency for In­ter­na­tional De­vel­op­ment (USAID) and other for­eign ‘aid’ or­ga­ni­za­tions into the cof­fers of huge cor­po­ra­tions and the pock­ets of a few wealthy fam­i­lies who con­trol the planet’s nat­u­ral re­sources. Their tools in­clude fraud­u­lent fi­nan­cial re­ports, rigged elec­tions, pay­offs, ex­tor­tion, sex and mur­der. They play a game as old as the em­pire but one that has taken on new and ter­ri­fy­ing di­men­sions dur­ing this time of glob­al­iza­tion. I should know; I was an EHM.”

Some ad­her­ents to the in­ter­na­tional bank­ing sys­tem have crit­i­cized Perkins’ claims. While some of his claims may be slightly ex­ag­ger­ated, most were true at the time, and are ver­i­fi­able. In­ter­na­tional lend­ing has be­come less preda­tory since the book was pub­lished, but sup­pres­sion of democ­racy and the free press by the same sin­is­ter in­ter­na­tional forces has ac­tu­ally wors­ened.

A good ex­am­ple of this is Hon­duras, where the Obama ad­min­is­tra­tion sup­ported a coup against the demo­crat­i­cally elected Pres­i­dent, par­tially be­cause he planned to raise his coun­try's min­i­mum wage and com­bat poverty, which might have eaten into the prof­its of U.S. cor­po­ra­tions. Af­ter the elected govern­ment was re­placed by a right-wing govern­ment suf­fi­ciently sub­servient to Wash­ing­ton, Hon­duras be­came one of the most vi­o­lent and op­pres­sive places on Earth and re­mains so to­day, but bil­lions of dol­lars flow freely into the coun­try from var­i­ous in­ter­na­tional lend­ing in­sti­tu­tions.

The AMERO cre­ates the po­ten­tial for change by end­ing the debt-cor­rup­tion-poverty-op­pres­sion cy­cle.

Grants can go di­rectly to lo­cal govern­ment agen­cies and NGOS and by­pass cor­rupt cen­tral gov­ern­ments. This will strengthen civil so­ci­ety, re­duce poverty and em­power the peo­ple from the bot­tom up to build more demo­cratic and re­silient so­ci­eties.

With the AMERO, politi­cians will have no longer have to align them­selves with in­ter­na­tional fi­nance to sup­port de­vel­op­ment and those who sup­port debt-free AMERO de­vel­op­ment will be more likely to win the sup­port of vot­ers.

A free and un­bi­ased me­dia is es­sen­tial to democ­racy and the NAPC will soon launch a new pro­gram to sup­port lo­cal and in­de­pen­dent me­dia with AMERO.

The Path to a Bet­ter Fu­ture

The AMERO merely en­ables and fa­cil­i­tates peo­ple ex­chang­ing the things they have for the things they need in a way that by­passes in­sti­tu­tional bar­ri­ers de­signed to en­rich the few at the ex­pense of the many.

By be­ing an in­ter­na­tional cur­rency that fa­cil­i­tates trade across na­tional borders and cul­tures, the AMERO will make it much eas­ier for peo­ple to work to­gether to solve prob­lems, erad­i­cate poverty, heal our planet and cre­ate a new, more sus­tain­able and hu­mane civ­i­liza­tion for all.

With the AMERO, the only things stop­ping us from cre­at­ing a new fu­ture are our­selves and our re­luc­tance to work with oth­ers to em­brace pos­i­tive change.

So many of us are trapped in lives that de­mand ev­ery­thing from us and leave us no time or en­ergy to re­ally con­tem­plate our cir­cum­stances, see the prob­a­ble fu­ture and imag­ine a solution for some­thing bet­ter.

So, I ask those who can see the pos­si­bil­i­ties that the AMERO pro­vides to em­brace it and share it with oth­ers.

Now re­ally is the time for us to step up, cast off the old and work to­gether to build some­thing new and bet­ter. The AMERO re­ally does make it pos­si­ble.

You can sign-up now for the AMERO by log­ging in at, NAPC.PRO or Tril­ If you don't have an ac­count you can reg­is­ter one for free. Once you are logged in click on Ac­count Man­ager then on Dig­i­tal Cur­ren­cies and select the level of ac­cep­tance (5%-100%) that you will con­sider for your goods and ser­vices and en­ter the key­words for the ser­vices or prod­ucts you are will­ing to con­sider ac­cept­ing AMERO for.

Ac­cep­tance of AMERO au­to­mat­i­cally gets you into our AMERO di­rec­to­ries and on June 4th your ac­count will be ac­tive and you can start re­deem­ing your AMERO with other ven­dors, earn more AMERO and make a dif­fer­ence.

AMERO’S Ben­e­fits to Busi­ness

AMERO and Democ­racy

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.