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Some important periods

Scorpio

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we are talking post fed creation here,

and what really happened to the original owners of the Fed

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European powers, tempted by the ability to print paper money to finance war operations, broke off the gold standard entirely during World War I.

Between 1914 and 1918, German authorities suspended the convertibility of marks to gold and increased the money supply from 17.2 billion marks to 66.3 billion marks, while their British rivals increased their money supply from 1.1 billion pounds to 2.4 billion pounds. They expanded the German monetary base by six-fold and the British monetary base by nearly four-fold.

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BIS

BIS Bank for International Settlements, History - overview​

Established in 1930, the Bank for International Settlements is the oldest international financial institution. From its inception to the present day, the BIS has played a number of key roles in the global economy, from settling reparation payments imposed on Germany following the First World War, to serving central banks in their pursuit of monetary and financial stability.
On 17 May 2020, the BIS marked 90 years since it first opened its doors for business. The book Promoting global monetary and financial stability: the Bank for International Settlements after Bretton Woods, 1973-2020 (Cambridge University Press), reviews the Bank's role and contributions over the past 50 years.
The timeline below outlines the BIS's history.


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What Is the Exchange Stabilization Fund (ESF)?​

The Exchange Stabilization Fund (ESF) is an emergency reserve account that can be used by the U.S. Department of Treasury to mitigate instability in various financial sectors, including credit, securities, and foreign exchange markets.


KEY TAKEAWAYS​

  • The Exchange Stabilization Fund (ESF) is an emergency reserve account that can be used by the U.S. Department of Treasury to mitigate instability in various financial sectors, including credit, securities, and foreign exchange markets.
  • The ESF is, predominantly, comprised of three types of financial instruments, namely the U.S. dollar (USD), foreign currencies, and special drawing rights (SDR).
  • The ESF was created and financed by the Gold Reserve Act of 1934.
  • The ESF has been used during the 2008 financial crisis and the 2020 COVID-19 pandemic to help stabilize financial markets.

Understanding the Exchange Stabilization Fund (ESF)​

The ESF is, predominantly, comprised of three types of financial instruments, namely the U.S. dollar (USD), foreign currencies, and special drawing rights (SDR). For instance, if the U.S. Treasury needed to intervene in the foreign exchange market to influence exchange rates and promote stability in both foreign and domestic currencies, then they could do so by using the ESF.


For example, due to the interconnected nature of the global currency market, volatility in one currency can quickly spread, and the ESF can be used to quell this turmoil. Usually, interventions are the bailiwick of central banks, but the ESF allows the U.S. Treasury to, for all intents and purposes, engage in what amounts to an intervention without having to seek the approval of the U.S. Congress.


One of the primary features of the ESF is that it includes SDRs, which is an international monetary reserve pseudo-currency created by the International Monetary Fund (IMF) in 1969 from a basket of leading national currencies and backed by the full faith and credit of the member nation's governments. This gives the U.S. Treasury a way to coordinate with the IMF if the need to stabilize exchange rates should arise.



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World Bank

The past 70 years have seen major changes in the world economy. Over that time, the World Bank Group—the world’s largest development institution—has worked to help more than 100 developing countries and countries in transition adjust to these changes by offering loans and tailored knowledge and advice. The Bank Group works with country governments, the private sector, civil society organizations, regional development banks, think tanks, and other international institutions on issues ranging from climate change, conflict, and food security to education, agriculture, finance, and trade. All of these efforts support the Bank Group’s twin goals of ending extreme poverty by 2030 and boosting shared prosperity of the poorest 40 percent of the population in all countries.

Founded in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions. Originally, its loans helped rebuild countries devastated by World War II. In time, the focus shifted from reconstruction to development, with a heavy emphasis on infrastructure such as dams, electrical grids, irrigation systems, and roads. With the founding of the International Finance Corporation in 1956, the institution became able to lend to private companies and financial institutions in developing countries. And the founding of the International Development Association in 1960 put greater emphasis on the poorest countries, part of a steady shift toward the eradication of poverty becoming the Bank Group’s primary goal. The subsequent launch of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency further rounded out the Bank Group’s ability to connect global financial resources to the needs of developing countries.


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In the later stages of World War II in 1944, the U.S. advanced this concept even further at the Bretton Woods conference in New Hampshire. There, a proposal put forth by British delegate John Maynard Keynes to use an internationally-managed currency called the “bancor” was rejected. Instead, American diplomats — holding leverage over their British counterparts as a result of their gold advantage and the bailouts they had extended through Lend-Lease Act policies — created a new global trade system underpinned by dollars, which were promised to be backed by gold at the rate of $35 per ounce. The World Bank, International Monetary Fund, and General Agreement on Tariffs and Trade were created as U.S.-dominated institutions which would enforce the worldwide dollar system.



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But in 1958, the system saw its first cracks, as the Fed had to sell off more than $2 billion of gold to keep the Bretton Woods system afloat.

American and European powers tried to band-aid the system by creating the London Gold Pool. Formed in 1961,

Some economists saw the failure of the Bretton Woods system as inevitable. Robert Triffin predicted that the dollar could not act as the international reserve currency with a current account surplus. In what is known as the “Triffin dilemma,”


By 1964, this dynamic began to visibly kick in, as American foreign debt finally exceeded the Treasury’s gold stock.

American officials, annoyed that the allies never paid them back for World War I, could now get their pound of flesh in another way.

As detailed in the precursor to this essay — “Uncovering The Hidden Costs Of The Petrodollar” — Nixon’s new Treasury Secretary William Simon traveled to Saudi Arabia as part of an effort to convince the House of Saud to price oil in dollars and “recycle” them into U.S. government securities with their newfound wealth.

On June 8, 1974, the U.S. and Saudi governments signed a military and economic pact. Secretary Simon asked the Saudis to buy up to $10 billion in treasuries. In return, the U.S. would guarantee security for the Gulf regimes and sell them massive amounts of weapons. The OPEC bond bonanza began.


Even pre-Bretton Woods, gold reserves from regions like Latin America were sucked up by the U.S. As Hudson describes, European nations would first export goods to Latin America. Europe would take the gold — settled as the balance-of-payments adjusted — and use it to buy goods from the U.S. In this way, gold was “stripped” from the developing world, helping the U.S. gold stock reach its peak of nearly $24.8 billion (or 700 million ounces) in 1949.

 
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Scorpio

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I know this is getting lengthy, but we are painting a picture,

A picture of the initial creation of the one world currency, and how it came to be,

It isn't coming, it is and already has been here for some time
 

Scorpio

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Despite the fact that today the U.S. has a much larger labor force and much higher productivity than it did in the 1970s, prices have not fallen and real wages have not increased. The “FIRE” sector (finance, insurance, and real estate) has, Hudson says, “appropriated almost all of the economic gains.” Industrial capitalism, he says, has evolved into finance capitalism.

For decades, Japan, Germany, the U.K., and others were “powerless to use their economic strength for anything more than to become the major buyers of Treasury bonds to finance the U.S. federal budget deficit… [these] foreign central banks enabled America to cut its own tax rates (at least for the wealthy), freeing savings to be invested in the stock market and property boom,” according to Hudson.

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America has drawn down and “sold off” its industrial base, where more and more of its stuff is made elsewhere, and more and more of its equity markets and real estate markets are owned by foreigners. The U.S., she argues, has extended its global power by sacrificing some of its domestic economic health. This sacrifice has mainly benefitted U.S. elites at the cost of blue-collar and middle-income workers. Dollar hegemony, then, might be good for American elites and diplomats and the wider empire, but not for the everyday citizen.
 

Scorpio

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what you are looking at is a timeline,

the Fed was created in '13, and a great number of things have happened since,

but as we have discussed, there are some points,

-the USD is the one world currency everyone has been predicting for ages now, it is already here
-the move from a gold standard to a fiat was blatantly purposeful, to release the USD
-the stripping of other countries resources for our benefit has again been planned
-the export of our industries was part of the strategy to create dependence
-the expansion of the military and its forays has been strictly enforced to protect the fiat regime and the transfer of wealth
-that europe, while trying to remain relevant, has been stripped and sold off
-that Japan has been stripped and sold off
-that the game now is with chin li, with the end of that stripping possibly approaching


you have heard me discuss how it is my theory that the original founders of the fed, left the liabilities there, and moved on to greener pastures of more dough, more power, and a less visible profile.

I have long argued that they went worldwide. The Fed was small potatoes. To me, they moved into the ESF and the BIS, where now they control the money flow across the world.

Remembering that the majority voting in these institutions is US centric, wherein these 'men' now have veto authority and control over all money flows.

The Fed in its current context, has a balance sheet chock full of liabilities, and a waning ability to influence. Once other countries are filled to the brim with USD debt, extraction is almost at max capacity. When that max capacity is achieved, their ability to contribute to the US of friggin' A miracle becomes muted. So they move on to the next.

Point being, where is that line where maximum extraction has been realized, as that will determine the end of this American Dream?

Then of course the ultimate question, what comes after?

Remembering that this has been going on longer than we have been alive, so our sum total of experience and studies are clouded by inadequate data, other than fabricated and falsified historical documents (virtually useless).
 

Hystckndle

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I know this is getting lengthy, but we are painting a picture,

A picture of the initial creation of the one world currency, and how it came to be,

It isn't coming, it is and already has been here for some time

Exactly ,
Already here.
Same as "digital is coming"
 

Goldhedge

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Cool thread.