The monetary disaster
The American dollar is used for two thirds of the international payments. Every American dollar issued is worth three cent of dollar. The amount of American currency in circulation is thousand times the annual internal product of the United States and exceeds the total value of all the existing assets on the Earth.
Being used as currency of reserve to guarantee the emission of other currencies, the non value of the American dollar reduces the effective value of the currencies that it should guarantee, included yen and euro.
Nevertheless, the change of the dollar is high. This paradox is caused by the American hegemony on the control of the resources, the military power and the treaties that continue to consider the dollar as an international currency and currency of reserve.
The power of the dollar is based on the control of the States, the supremacy of the weapons and on the paper. Watermarked paper on which the currency are printed and paper of documents on which its value is sanctioned.
All that is supported by the media information and the stock markets. If the stock markets collapse, the power of the information collapses.
Will the stock markets collapse? It is very likely. The overwhelming majority of the money invested in stock market is not enterprise profit deriving from the production of goods and services but bank credit transformed in currency.
If who sells asked in change goods instead of dollars, the amount of dollars that would re-enter in the United States would be so big to increase in excess the demand of titles.
At the same time, the value of the capitals of the enterprises quoted in the stock market would face a substantial reduction and would put in motion the process of devaluation of the dollar, that will only be stopped when it touches its effective value of 3%.
The saver (also the Americans) will try to exchange dollars with other currency because in absence of a sufficient amount of «shelter assets» they will try «shelter currency».
But the exchanged currency are also guaranteed by dollars and the process of devaluation of the dollar will drag in the monetary catastrophe nearly all the other currency.
How to avoid all that?
Leaving the dollar at its destiny.
Selling out dollars in exchange for assets.
Replace the dollar as currency of reserve.
The States and their central banks can, until they are in time, transform the dollars that they hold as guarantee of their currency with other assets.
People that have dollars must sell gradually in exchange for material assets, also accepting an increase of the prices.
Leaving the dollar, the States and the people will save them self and they will be able to help the United States when their currency will have a value of 3% of that who turns out to be in circulation.
6 agosto 2002