Global Currency Changes Coming Soon
New Standards Will Change Forex and the World Economy Forever
Ready to Hunt-the-Gowk and redefine Pi.
Yesterday, the US Treasury and Federal Reserve announced some new regulations to fix all of America’s financial problems. Buried deep inside was a small reference to activating an obscure “Metals Act” regulation from January 1945.
It seems that the US came very close to going bankrupt while fighting World War II. Some metals became so scarce that even the common nickel was minted from silver since nickel was needed for the war effort. Near the end of the war, the silver was running out and all the gold was being used to back loans needed to keep fighting. The Metals Act of 1945 was designed to allow the US Government to change the US Dollar from the Gold Standard to the Zinc Standard very quickly if the emergency of that time or any future emergency warranted it. The development of the atomic bomb brought the war to a decisive end before the crisis was quite bad enough to warrant activating the provisions of the Metals Act, so the option was never used. It has remained on the books in case of a future financial crises.
The recession that started in the late 1970’s brought America’s government closer than ever to using this provision. Even as the economy began to recover, in 1982, the US 1 Cent coin was switched from 95% copper to a 97.5% zinc core with a copper coating. The recovery that followed was strong enough that plans to switch to the Zinc Standard were shelved again.
The time has come. America’s current fiscal crisis has pushed us to a crossroads. The American and world economy is just beginning to recover, and even a small issue could quickly escalate into a another worldwide great depression. At this point, Federal Reserve chairman Ben Bernanke has finally admitted that money as we know it is just an intangible social construct. It’s pieces of paper or bits of electronic data backed up only by the people’s faith in the government and that faith is rapidly failing. Something had to be done to prevent a potential collapse of the US Dollar, and the 1945 Metals Act was the only law on the books that could be used without endless and counterproductive debate in Congress. President Obama has now signed off on activating it.
The final activation of the 1945 Metals Act is now scheduled for January 1st of 2011. At that time, the US Dollar will be backed by zinc, and all US coins intended for general circulation will be made from zinc or zinc alloys so that the value of the zinc in the coin will be related to the coin’s face value (very much like the silver and gold value in coins when the US was on the Gold Standard).
Currently, the US Government is hoping that word of this plan does not leak out as they are in the process of rapidly expanding the vaults at Fort Knox and filling the new space with as much zinc as they can get before the expected price jump when the new standard becomes widely known. Needless to say, projections are that there will be worldwide panic buying of zinc at that point.
As you can guess, shifting the US Dollar to be backed by any metal would cause some large changes in world currency values before any of the hoped for stabilization occurs. Other countries will naturally take protective measures to prevent their money from being rendered essentially valueless by the US move.
Several directors of the US Federal Reserve have been in China quietly negotiating to see if the Chinese government will also move to this new standard in order to fix the relative price of the US Dollar and the Chinese Yuan (CNY), thus bringing stability in trade. Hopes for this unity have been dashed. It seems that the People’s Bank of China has instead decided it would be better to move the CNY to an Aluminum Standard. The effect on both the value of the Yuan and prices for aluminum is expected to be huge. As a side note, there is an unconfirmed rumor that a large unnamed corporation (rhymes with FalNart) that is one of the largest purchasers of Chinese goods in the world may start giving customers a discount at stores worldwide if customers pay in CNY. This will help that company both in paying for the Chinese goods it buys as well as to help it ride out the wild currency value fluctuations that will occur while these new standards are put into place.
Similar negotiations with the European Central Bank also broke down, and the rumor is that the Euro will be backed by copper sometime in mid 2011. Currently, the Bank of England’s Board of Governors is debating whether to move to one of these 3 standards but seems to be strongly leaning towards the radical move of backing the British Pound with titanium. This would ensure that the GBP will always remains the world’s strongest currency.
US negotiators tried to bring Canada and Mexico into the Zinc Standard, just so that all of the Amero conspiracy theorists could all say “I told you so”. Faced with this sudden divergence of financial policies from other world banks, the Canadian Central Bank has decided instead to reject all metal standards completely. Since the Canadian Dollar is also called the Loonie, there was some discussion of backing the currency with actual loons. It was decided that this would have made the foundation of the economy too vulnerable to poachers and there were also worries about which of Canada’s trade partners would be willing to accept wild birds as currency. In the end, it was decided that the CAD will be backed with a mixed basket of commodities based on the nation’s primary exports. Therefor, the Canadian Dollar will be backed by oil, lumber, and beer. Since none of these are easily minted into coins, the obverse side of all new Canadian coins will depict a tree, and oil well, and a beer bottle. Canadian beer bottle caps will have their value set at 5 Canadian cents. There’s also a plan for a new 5 dollar coin from the Royal Canadian Mint that will be the exact same diameter as a standard beer can and would be nicknamed the Brewski. Since beer cans are made of aluminum, there is some speculation that this is also a move to further improve trade relations with China.
Mexico is currently exploring a new currency standard based on beer, tequila, and tourism for the Mexican Peso. Their top researchers are hard at work on a beach somewhere in Cancun and are expected to file their final report any month now.
Following Canada’s lead, Australia and New Zealand will both link their currencies to their most important export. In this case, there is a show of regional unity, and both nations have decided to go with the Wool Standard. All coins will depict a sheep on the obverse, and bills will contain at least 15% wool content. There is word that the Bank of Scotland has noticed this move and may break with the Bank of England. If the Bank of Scotland really does takes such a step, this will herd all 3 of the world’s largest sheep producing countries into the same flock so that their currencies are all safe, fluffy, and warm in winter.
Knowing the financial turmoil that all of this will create, the Swiss Government has decided to hold off on applying a Swiss Chocolate Standard to the CHF, at least not until April Fools’ Day next year.
P.S. April Fools! Put down the phone and stop ordering Zinc and Aluminum.
P.P.S. If you still don’t know what April Fools’ Day is, click here.
P.P.P.S. Really, it’s a joke. Stop buying Zinc and Aluminum. Go ahead and buy some beer, chocolate, and wool if it will make you feel better.
P.P.P.P.S. I’m ready to flee the country if there’s a spike in Zinc prices and I get blamed.
We don't understand how he does it, but Pharaoh has an uncanny ability to spot scams faster than anyone else we've seen. He claims to have known a number of companies were HYIP scams just by their domain names and that each time an examination of the website proved him right. He's also famous inside Forex Peace Army for warning about Ponzi schemes, even ones run by large and well established companies. He's been in a number of threads trying to warn people away from active Ponzi schemes. In spite of the efforts of shills and those gullible enough to believe in free money to discredit his words, he keeps up the warnings. In each case, the company ended up either disappearing with all client money or being shut down by the authorities.
In addition to investigating scams, Pharaoh has written a number of articles on a wide rage of trading topics, including forex broker selection, risk management, and how to select a good account manager. He's also covered other items of interest to traders, such as protecting wealth and purchasing precious metals.
Pharaoh claims to be a business consultant, but says he makes most of his income by running a globe-spanning hamster smuggling operation. If we are to believe him, he's currently working on a network of hamster tunnels under southern Europe.
Info2982 Views 71 Comments
But it was a good one tough
that's all i can think of when i read this news
May be you happened to just revealed the biggies plan and you are now in their wanted list!
Again! Happy fool day!
Yesterday I was wondering if I would see and good April fools jokes flying around. This was a good one. Ya had me until ya started talking Loons LOL
Thanks ya brightened up my day LOL
U really got me going.
Nice one !!
I also just started trading forex not long ago and you almost made a loony out of me. I almost **** in my pants. I was opening another window to check out zinc and aluminium prices even before i finished reading. But the Beers, Timbers & Chocolate got me laughing.
Good Job. Luckily I did not start ordering my metals yet. It wouldn't be much of a joke anymore now would it !
We live in a wonderful world, with lots of talented people!!! :) Really good!!!! :D
Good one i go into it until the loonie!Then thought it was suspicious.:shocked:
April Fools has been dull here in Sydney ... thanks for the humour!!
Dang, wish I'd read the entire article before reacting; about 1/4 down, right after 'President Obama has now signed off on ...' I switched over and logged into each of my banks and transferred my entire cash balances to my forex account in preparation for shorting dollar. Now wandering what the heck I'm going to do for lunch tomorrow now that I don't have any cash.
I enjoyed this so much!
Then I got to the CAD paragraph and nearly lost it :D falling out of chair laughing. That's about the time I realized what the date was.
Well played good sir!
p.s: despite the hilarity here, truth can be stranger than fiction ;)
very good joke
you got me at the begining ;o)
The pound will be more liquid with the mercury standard, although in hard winters there might be a stiffening of price action?
all the best
and thank you all for market insight and tips.
You really have to get your facts straight if you want to do the April Fool's thing. FYI Beer is definitely a currency standard already, at least in the Northern Territory of Australia. In fact, if you don't have cash, (or even if you do) a beer or two are readily accepted (and often actually expected) as a valid and legitimate form of exchange in almost every region of this most enlightened microcosm. I kid you not!
That's the good one!!!
And I finally felt vindicated for keeping store house of beer caps!
Plans were afoot to raid all the bars - banks begone it's the bars were all the money would be what with the value of a bottle cap!
Best April Fools joke I've ever heard! I bet this makes it around the net quite a few times!!! :D And I bet the price of zinc and aluminum spikes!!! :)!!!
I do find it theoretically interesting as well...underneath the joke are some truths...
Geez, that was some great news.
I forgot it was a fool's day.
Thank God i read through. Was almost looking for a broker who would do titanium and aluminium charts in a MT4 platform...lol
Thats a good one! Happy April Fools Day Everyone!
ps - I do think its funny how much we can make in forex based on "their" counterfeit money! ;o) Cheers!
As soon as I started reading, I thought "What has Pharaoh been drinking? We haven't been on the gold standard in forever? He must be off his rocker!"
When I got to the loonie, I said okay this is a joke. Not until the end was I reminded of today's date. Got me! Now I'm off to see what havoc I can cause.
I really liked it, but especially the PSSS end parts altering people to the fact it WAS really a joke, and not to go out & buy up big in Zinc (lol). What if there is some massive spike though.. :ooh:
April Fool's Day
hey - really a good one - i was very sleepy when i read the first half of the article - my thoughts - well so Aluminum it will be in the future ....
i switched to my trading machine and after the 2nd coffee it struck me ... dammit where can i trade raw materials ..... besides mainstream crude oil, Au and Ag.
then i realized that todays is April 1 so went back to the article .....
i nearly wet myself when i re-read the lines about Titan for the GBP and Zink for the USD and then i realized that it has to be an April Fool Joke ....
I wondered if Switzerland would consider to base their Franks on Milk Chocolate (with some handy "portable pocket-cooling" devices for the summer) - that would be very swiss to say the least :) ...
cheers - ahab666
Well Pharoah, I guess you and the team of FPA will be around when the whole of this drama will be unfolded. Thanks a lot for this piece!
Over 6000 views in 16 hours (time now 14:40CST). Is that the active member list. It’s a good thing you hooked everybody so good they read to the end. You got every body good.
Here are some more for you:
Down here in Brazil we´ll back up our currency with oil, coffee, bananas, iron, samba, carnaval, football and gourgeous women!!!
On another note, can anyone explain why the EUR/CHF spiked yesterday for nearly 250 pips??? Another April Fool, or did the Swiss chocolate factories actually go on strike???
> I'll bet you a couple of Brewski's that a few of our Canadian members fall for it. :p
Surely you jest, give us some credit!
Very well done! Great sense of humour. With all the impending potential crap happening in the forex, your wonderful sense of humour is a welcome relief. You ALMOST got this Canadian member. For a few moments you had me crapping my pants and busting a gut at the same time. WELL DONE! Kudos to you for a well thought out piece. Everybody have a great Easter weekend.
You got me! I was ready to email my friends.
From now on I'm going to read any of your future articles starting at the end and finish at the beginning. :)
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THE WATER SIDE JOURNAL
Thursday, 1st April 2010
We have underground news that the Forex Robot-Wild Cat (FR-WC) team has just formed to tackle the coming change in global currency market according to FPA. And they claim their robots will slice the market with JAWS and CLAWS, just like wild cats.
Mr. Danish Cookie, an inside member of FR-WC who did not want to reveal his real identity talked to WSJ and reveal some awesome and spectacular details of 7 high potential participating robots and mentioned there are going to be another dozen of bots in the competition. Here are the details
#1 LOL-Multi Animal
grid trading for trapped Loons, Sheep etc
trend trading for all metals like Zinc, Aluminum, Titanium etc
open up to 10 trades, 1-2 for each metal
#3 Super Tsunami
is heard to be an aggressive robot that use no SL & TP
reversal trading of the uncertain JPY pairs (they have yet to decide what to back on)
its for traders who love roller coaster curves with extremely high return
#4 Dark Chocolate Swissy Scalper
we can guess what it trade and how it trade
#6 Alcoholic Trader
this one will deal with beers, tequila and may be future some other wine
#7 Mega Oil Driller
this one was said to use 36 advanced indicators
wait for the best chance and when it strike, VOILA it just strike oil every time
it does not trade very often
Mr. Cookie also said they would pick 7 leading robots, alter their MMA and build a super robot called EXPLOSION 7. He was very excited when talking about this robot. He said unlike others, they will only sell these bots to 100K customers worldwide for $100K each set through internet payment handler SNAKE-BANK (R) so customers won't be able to get refund!
Mr. Cookie said they want WSJ to be their media of choice broadcasting their robot news.
SHARK - WSJ Chief Editor
:embarrassed:You got me...I actually went to check Zn futures midway thru the bit...haha...very nice.
what is going to be the effect on forex trader
is it going to be negative or positive?
Make sure to ask your bank to keep checking on when those will be available. Most larger international banks should be able to help you get these. Demand to speak to the bank manager and ask him/her to help you buy a case of Brewski's.
what is going to be the effect on forex trader
is it going to be negative or positive?
I still have Krugerrands (1979) and Regimental bottles of wine from Rhodesia.
I wish I had more Canadian, but 1979 Krugerrands are sentimental to me, (there should be no sentimentality in a portfolio)
Forex trader’s work from the hedge line (center) of the battle field. It’s like standing on the beach. Surf wash/wave line is “Zero”. Scoop of a handful of sand, -1 beach, +1 for the handful (will you sell it, Dripping losing equity between your faulty fingers??), what will happen to the beach the next wave wash???:confused:
that's great, a trader with a sense of humor, very funny pal, you should get some real work done instead of loosing my time and my fellow traders, haven't you notice that the FPA reputation is going to the sewer, IT'S because of this kind of C**P that you just posted.
on the other hand. Im just kidding too buddy!!! thank you for a few laughs, we all need a sense of humor.
Somebody should please come to my aid, what does these mean to the forex market, does it mean an end to it?
If you are still worried about the effects on forex trading, then do this:
Run to your bank. Demand to see the manager. Tell him/her that you need to buy as many cases of Brewskis as possible. Ask how much the bank will charge you per case of Brewskis. If the manager pretends to not know what you are talking about. show him/her a copy of this article.
..hmmm....I think a banana standard is much better and tastier.
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