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Global Currency Changes Coming Soon

Global Currency Changes Coming Soon

New Standards Will Change Forex and the World Economy Forever
By Pharaoh

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.

Bernake Admits Money Is Just Pieces of Paper

CRITICAL Data on 1945 Metals Act – Please read NOW!

P.S. April Fools! Put down the phone and stop ordering Zinc and Aluminum.  :D

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.  ;)

Author Profile

Pharaoh

Pharaoh

Pharaoh is one of the FPA's oldest members (he claims to be about 4000 years old, but we think he's exaggerating a little). He says he created the world's first trading pair (Cow/Goat) while ruling ancient Egypt. Although there are no archeological or historical records to support this claim, we can't find anything to disprove it. Although he's not as active at the FPA as he used to be, he still holds the highest post count of all FPA members.

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.

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Comments

li21
9 years ago,
Registered user
hahha very good!
Arif Anuar Burhan
9 years ago,
Registered user
Good One! Got me in the beginning until the swiss chocolate standard...:hissyfit:
mechtech63
9 years ago,
Registered user
Damn, finally thought this old paperweight was worth something.
Pharaoh
9 years ago,
Registered user
I'll bet you a couple of Brewski's that a few of our Canadian members fall for it. :p
Lucas Gremista
9 years ago,
Registered user
man I'm already tense cause I just started trading forex and still learning and you scared the s... out of me like that!

But it was a good one tough
Lucas Gremista
9 years ago,
Registered user
I was already thinking how they would fit a big ass coin into the cash registers
tinka01
9 years ago,
Registered user
Happy April Fool's day?

that's all i can think of when i read this news
alvin050
9 years ago,
Registered user
In this crazy world, anything seems possible :)
Firstfx
9 years ago,
Registered user
Good one!!!!
SHARKspear
9 years ago,
Registered user
You got me too! But be careful.

May be you happened to just revealed the biggies plan and you are now in their wanted list!

Again! Happy fool day!

Foolish SHARK
Cdtmorpips
9 years ago,
Registered user
That was a good one.

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

Nice one

Thanks ya brightened up my day LOL
piphog
9 years ago,
Registered user
haha here I was ready to write a response about how you must be on crack because none of that stuff was true -- until the swiss chocolate remark when i realized it was obviously a joke :) good one!
stg82
9 years ago,
Registered user
there goes my profit in zinc.:unhappy:
U really got me going.
Nice one !!
Mandrake
9 years ago,
Registered user
The Best Apirl Fool's Day Joke Ever

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 !
Karl999
9 years ago,
Registered user
Nice one!!!

We live in a wonderful world, with lots of talented people!!! :) Really good!!!! :D
Ricex
9 years ago,
Registered user
lol! nice one, very good!!
Slicktick
9 years ago,
Registered user
I heard form a good friend that Russia is preparing to go on a vodka standard.
dyl72
9 years ago,
Registered user
Nice standard

Good one i go into it until the loonie!Then thought it was suspicious.:shocked:
Maleewan B
9 years ago,
Registered user
thought I'd been 'fleeced' again :)
April Fools has been dull here in Sydney ... thanks for the humour!!
MereChase
9 years ago,
Registered user
Wish I'd read entire article before reacting

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.
Roger M Hull
9 years ago,
Registered user
Haha!!

I enjoyed this so much!
synaesthetique
9 years ago,
Registered user
At first I got a strange feeling asking myself "Why am I hearing about this for the first time from Pharaoh? Wouldn't this have been all over the news if such detail has been made public?"

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 ;)
barabanLT
9 years ago,
Registered user
very good one

very good joke
fxfreashman
9 years ago,
Registered user
1 April, good one
you got me at the begining ;o)
P Jordan
9 years ago,
Registered user
"UK Will USE the MERCURY Standard

The pound will be more liquid with the mercury standard, although in hard winters there might be a stiffening of price action?

LOL
all the best

and thank you all for market insight and tips.
Linda ODoherty
9 years ago,
Registered user
the beer standard

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!
Pharaoh
9 years ago,
Registered user
LMAO! Well, I had to mix a few facts in to make it just a little more believable. US Nickels really were 35% silver during starting partway though 1942 through 1945, and the Penny really did shift from Copper to Zinc in 1982. Alcohol in various forms really has been used as a currency substitute here and there.
dacuna
9 years ago,
Registered user
I'm gcvbnpt forex broke. We'll let you buy zink and AL this weekend only for a small 5k deposit with your visa:D
Juanita
9 years ago,
Registered user
Haaa....haa.....haaa....haaa.....

That's the good one!!!
stevesmain
9 years ago,
Registered user
brewski

Ah NUTS!

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!
marjiemiller
9 years ago,
Registered user
WHEW!!! You had me goin there, until the Loon, and then I thought one of us must be looney to be believin this!!! I was about to google the 1945 Metals Act!!! I was getting real worried about my Gold positions!!! :ooh:

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...
dragonrabbit
9 years ago,
Registered user
Good One guys !!! ...................had me fooled for a sec.................U guys are sick ........................LOL :)))
Stony
9 years ago,
Registered user
Hmmmm - not really an April fool! The value of a currency is always determined by its base of natural (and a little bit of human...) resources. So, why not beer, chocolate, zinc, teddy bears or what the heck as currency backup? I´d prefer beer, anyway, because of its easy convertibility....:D
eam159
9 years ago,
Registered user
Got me with that one. Had me getting more concerned with every sentence until the one where Canada was backing its currency with loons! Very good.
Forex Team Support
9 years ago,
Registered user
that's great..... very nice and confusing until the vividly impossible ones ::: the loons, the wool.
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
4x4Ever
9 years ago,
Registered user
LMFAO!!

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!
jmjatlanta
9 years ago,
Registered user
Say what?

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.
paulo30
9 years ago,
Registered user
nice one.

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:
grelminar
9 years ago,
Registered user
haha lol , i started to laugh when i got to the lumber and beer part
DetroitSlice
9 years ago,
Registered user
LOL...Now you have given the powers that be some ideas to implement...

April Fool's Day
ahab666
9 years ago,
Registered user
Mega-roflol

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
azhankhalid
9 years ago,
Registered user
hahaha some refreshment before we got war on NFP:mad::p
Brenda Andrieu
9 years ago,
Registered user
You got me!!!!
SAMMYFX
9 years ago,
Registered user
Good Piece

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!
mondavie
9 years ago,
Registered user
hahaha... good...good...I got another story today, trading without loss 100% and no more MC system.....
SipsiPuss
9 years ago,
Registered user
Excellent!!!
Eric Alyea
9 years ago,
Registered user
6000 views, Is that the active member list.

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:

www.forexpeacearmy.com/community/threads/jokes.2342/
RMSTrader
9 years ago,
Registered user
got me!

Good one.....haha
jjrichman
9 years ago,
Registered user
Usd/brl

Hi Pharaoh

Down here in Brazil we´ll back up our currency with oil, coffee, bananas, iron, samba, carnaval, football and gourgeous women!!!
Awais Rasheed
9 years ago,
Registered user
That was hilarious buddy :) Nice Job!
RedAceAZ
9 years ago,
Registered user
April Fool

Very funny!

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???
kidzdad
9 years ago,
Registered user
not likely

> 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!
Armin R.
9 years ago,
Registered user
Global Currency Changes

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.
Armin:p
Steven Bulger
9 years ago,
Registered user
sbulger

You got me! I was ready to email my friends.
Pharaoh
9 years ago,
Registered user
Go ahead and email them. See how much Zinc they buy before they realize they've been had. :D
boaz
9 years ago,
Registered user
Flippin'

From now on I'm going to read any of your future articles starting at the end and finish at the beginning. :)
SHARKspear
9 years ago,
Registered user
You can try, but reading from the end to the beginning would be very difficult or may destroy all the flavor of the article.

SHARK
SHARKspear
9 years ago,
Registered user
First posted by SHARK in DonnaForex forum but moved by the webmaster. I just post the original article here so it won't be affected by future moving or deletion. If you happen to be member of DonnaForex forum, you might have read it already.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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

#2 Hi-Miner
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.


Edited by
SHARK - WSJ Chief Editor
George Gasco
9 years ago,
Registered user
Sheesh...!

:embarrassed:You got me...I actually went to check Zn futures midway thru the bit...haha...very nice.
lovelawson
9 years ago,
Registered user
i read this news today,
what is going to be the effect on forex trader

is it going to be negative or positive?

Lawson
Pharaoh
9 years ago,
Registered user
It's too early yet to tell which currencies will benefit the most. Personally, I'm betting on Canada's strategy and will be buying up as many of the new Brewski coins as I can get my hands on.

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.
;)
dechap
9 years ago,
Registered user
So it is not for real. I already bought it but was thinking a lot of things over; the wool, the beer, the timber, etc.
Pharaoh
9 years ago,
Registered user
If anyone's interested, I wrote a less elaborate version of this on 2008. It didn't get mailed out, so fewer people saw that one. It's here:


www.forexpeacearmy.com/community/threads/major-change-to-u-s-currency.2016/


:D
Eric Alyea
9 years ago,
Registered user
>
what is going to be the effect on forex trader

is it going to be negative or positive?

Lawson

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:
cowmadagan
9 years ago,
Registered user
Good analogy. You could also say it for waterfront property.
Propheteer
9 years ago,
Registered user
great!!!

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.
kenlin
9 years ago,
Registered user
Global currency changes

Somebody should please come to my aid, what does these mean to the forex market, does it mean an end to it?
Please explain.
Pharaoh
9 years ago,
Registered user
It means that you need to read the article again and follow the links. :p

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.
;)
SHARKspear
9 years ago,
Registered user
I wonder how the bank manager would react - LOL!