Speculation Against Danish Euro Peg Proving Relentless

Speculation Against Danish Euro Peg Proving Relentless

The European Exchange Rate Mechanism (ERM) was a system introduced by the European Economic Community on 13 March 1979, as part of the European Monetary System (EMS), to reduce exchange rate variability and achieve monetary stability in Europe. After adoption of the Euro, a modified version, called ERMII was introduced. A country normally remains in ERM II for two years before it can adopt the Euro

You may know that Denmark voted against adopting the Euro, but Danmarks Nationalbank keeps the exchange rate within the narrower range of ± 2.25% against the central rate of EUR 1 = DKK 7.46038.

Denmark's central bank cut its key policy rate in February fourth time in three weeks, dropping it to -0.75pc, and said it would continue to defend the crown currency's peg to the euro. The cut of 25 basis points was bigger than the three cuts of 15 basis points each and brought the rate to the same level as in Switzerland.

It looks loosely like maybe not "global" monetary unit parity, but the western currency's are moving rapidly toward equal value?

http://www.zerohedge.com/news/2015-03-19/de-dollarization-accelerates-more-washingtons-allies-defect-china-led-bank#comments. Our friends are bailing on us.

http://www.zerohedge.com/news/2015-03-10/eurusd-tumbles-106-handle-swissy-slides-usd-parity

The world currency [probably the SDR] is moving upon us.

I personally don't see digital currency "bitcoin" as being secure enough. I think it is a fad, and many will be burned. The bitcoin vaults have already been breached.

Quote: petroglyph

I personally don't see digital currency "bitcoin" as being secure enough. I think it is a fad, and many will be burned. The bitcoin vaults have already been breached.

And you see this 7-10 year cycle of producing physical paper and trying to stay ahead of being breached by counterfeit technology as a permanent situation. Each cyce of banknotes ups the game in terms of sophistication and expense, and a number of currencies have had manufacturing problems producing the next new cycle of banknotes.

Add in the physical danger of being robbed, and the expense of guarding what amounts to cyphers, and I think that digital currency will come.

Consider Poland with their 30 billion euros worth of zloties. They are afraid to enter into the Euro Zone because they don't know what will happen long term to the Euro. But they keep the exchange rate between zloty and Euro fixed so it doesn't get devalued or be attacked by currency manipulators. So they end up taking the worst part of being fixed to the Euro, and at the same times they get none of the advantages of being able to use the larger financial markets.

31.3€ billions Polish złoty
26.3€ billions Romanian leu
16.9€ billions Czech koruna
11.9€ billions Hungarian forint
8.2€ billions Croatian kuna
5.2€ billions Bulgarian lev


Digitizing some of these minor currencies will take care of many problems. It should provide some flexibility on both entering and leaving the Eurozone.

North Korean printing presses make excellent counterfeit notes.

Quote: Pacomartin

And you see this 7-10 year cycle of producing physical paper and trying to stay ahead of being breached by counterfeit technology as a permanent situation. Each cyce of banknotes ups the game in terms of sophistication and expense, and a number of currencies have had manufacturing problems producing the next new cycle of banknotes.

At least someone has to go through the effort to counterfeit banknotes, versus every kid in his parents basement trying to hack the mainframe. Example :http://www.thedailysheeple.com/underground-market-steals-12-million-in-bitcoins-going-to-the-caribbean-hope-you-guys-understand_032015

The physical "paper" notes don't last as long as the 7-10 year cycle you mentioned, so they need to be replaced anyway. ttp://www.federalreserve.gov/faqs/how-long-is-the-life-span-of-us-paper-money.htm A ten dollar note only lasts 4.4 years and a one dollar note 5.9.

Quote:

Add in the physical danger of being robbed, and the expense of guarding what amounts to cyphers, and I think that digital currency will come.

I am sure of it, and the manipulators have control over the value of everything regardless of what it was worth when we earned it.

Quote:

Consider Poland with their 30 billion euros worth of zloties. They are afraid to enter into the Euro Zone because they don't know what will happen long term to the Euro. But they keep the exchange rate between zloty and Euro fixed so it doesn't get devalued or be attacked by currency manipulators. So they end up taking the worst part of being fixed to the Euro, and at the same times they get none of the advantages of being able to use the larger financial markets.

So if the Poles decided to fix the value or their currency to the value of the Euro regardless then they just took a big devalue on their net worth. That tells me that their money already was fiat and has no intrinsic value. That is the problem with fiat money.

I think that is what was the impetus for several MENA wars or a hell of a coincidence that every time a dictator over there wants to start an African bank with gold backed money, they are in a war with countries that have central banking in short order. See Tunisia, Iraq, and Libya. Each had gold, and wanted a fully backed currency under Sharia law with no usury.

These are all central bank manipulations in a NIRP paradigm. Pensioners are getting killed in all central bank economy's with negative interest rates, and fiat currency's routinely pegging themselves to other sinking ships. This did not happen in countries when they were backed by something other than faith and credit. A pre-64 US dime is worth around 3 dollars now.

The petro dollar is being challenged mightily by the petro-yuan.

Quote: petroglyph

The physical "paper" notes don't last as long as the 7-10 year cycle you mentioned, so they need to be replaced anyway.

I am not talking about replacement notes, I am talking about design change. The intention was to replace the big headed series 1996 c-notes in 10 years with a color design. They decided to push back to the series 2009 (13 years). Now that got badly derailed because of manufacturing problems, so that the $100 notes released on October 8, 2013 are still series 2009.

Even these notes must be replaced with even more complex notes in ten years.

The debacle with the American color c-note also happened in several other countries as well. The United Kingdom is going to join Canada, Australia, and New Zealand in issuing polymer banknotes. That is partly because of longevity, but also partly because they are difficult to counterfeit.

Bank of england and Bank of Canada circulates about 50 banknotes per capita (4 denominations in UK, and 5 denominations in Canada). The USA circulates about 114 banknotes per capita in 7 denominations (30% are $1 bill).

Quote: Fleastiff

North Korean printing presses make excellent counterfeit notes.

The $1 banknote must be incredibly easy to copy by now. I wonder how much commotion if you could make tons of these and drop them on American cities.

Italian counterfeiters used to launder one dollar bills.... literally. Then use that paper to print larger denominations.

One old codger in Brooklyn used to make counterfeit one dollar bills and always made less than if he were getting social security.

With so much cash transferred by armed thugs in urban areas, digital currency would help inner city areas where a business can't afford a legitimate armored car and has to use assault rifle toting "guards".

The cost and danger of physical currency is very high on the lowest levels of society.

Traditionally, the $1 banknote was bleached by counterfeiters to get the paper for the c-note. Six years before the big headed Benjamin note was introduced, the first new-age anti-counterfeiting measures were introduced under Series 1990 with microscopic printing around Franklin's portrait and a metallic security strip on the left side of the bill.

The British one pound (£1) coin was introduced on 9 February 1983. In the 33 years, the number of counterfeit coins has pushed past 50 million. A new coin is being designed, but it won't work in most machines.

It makes me wonder if there are a lot of US$1 banknotes circulating that are counterfeits.

Circulation figures (per capita) for different denominations follow. Of course, the USA c-note circulates mostly overseas, while only a limited number of Canadian c-notes are overseas. The British £50 note has virtually no overseas circulation, and is relatively rare even within country. The £100 banknote is only issued in Scotland where it has very limited circulation.

Figures are number of banknotes per capita (not value).

Denomination $ or £	UK	Canada	USA
1			34.4
2			3.4
5	5.0	6.3	8.2
10	11.6	3.6	5.9
20	29.4	24.6	25.3
50	3.6	6.1	4.8
100		10.0	31.7

Some people are surprised to find that the US$2 banknote is circulating at a rate over 50% of both the $10 and the $50. It has ZERO value as a collectible, but people shove them in drawers anyway.

Quote: Pacomartin

The $1 banknote must be incredibly easy to copy by now. I wonder how much commotion if you could make tons of these and drop them on American cities.

Fake is fake. The problem with the PTB is who is manipulating or creating fake "fiat" money. The problem from the central banks viewpoint is they don't want competition for "money" [value/capital] created out of thin air.

Ben Bernanke is associated with dropping money from helicopters if need be, to stop deflation.

What is the difference between dropping "counterfeit fiat" and "authentic fiat" money, by using computers to distribute EBT food stamps to 47 million people every month?

I read a few years back where in certain areas the most desirable product to shoplift was Tide detergent? I saw it mentioned a few times and didn't understand until it was explained to me. The reason it was so desirable is "folks" in the ghetto's were using it as a medium of exchange. Everyone understands the value of a box of detergent. It was being used as "money".

A few decades ago I read that there were warehouse's of black market products [in Cal.] where shoppers could buy anything with food stamps, even automobiles.

Quote: Pacomartin

It makes me wonder if there are a lot of US$1 banknotes circulating that are counterfeits.

IMO, every one of them since 1971, when Nixon closed the gold window.

All central banks now are engaged in what is termed "competitive devaluation", where every country that uses fiat currency wants to print away their national debts.

It is all counterfeit according to the tenth amendment to the constitution; “the money of account of the United States shall be expressed in dollars or units … of the value [mass or weight] of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure … silver."

Everyone wants to devalue their currency to make their manufactured goods cheaper around the world. A strong dollar kills American exports, but a weak devalued dollar kills our retirees and poor.

Yellen is continuing Bernanke's "beggar thy neighbor" policies. It is a race to the bottom. That is why Saddam and Ghadafi were such threats, they trying to establish an African bank with gold backed currency.

Not tenth amendment as posted, edit; Section 10, clause 1, Contracts clause