Ivan (one of our readers) wrote:
“There is a House Bill #2847 stating that dollar and other currencies are to be reset worldwide on July 1, 2014. Does this mean that petro dollar disappears and dollar itself will be devalued?”
You don’t need to be a rocket scientist to understand everything in this world. Sometimes, common sense is enough.
A currency “reset” is a moment when the relative values of most currencies are changed. For example, you might be able to buy 100 yen today with $1. But on the morning after the “reset,” $1 might only purchase 50 yen. By means of a “reset,” the dollar might’ve lost 50% of its purchasing power overnight.
In the event of a global currency “reset” the relative values of all of the world’s major currencies would be significantly changed. Everyone seems to agree that the primary effect of a “reset,” would be to significantly reduce the purchasing power of the US dollar.
I haven’t read HR 2847 and it’s bad business to comment on any text that you haven’t read. Still, I don’t believe that that bill actually announces that there’ll be a currency “reset” on July 1st, A.D. 2014.
If there’s going to be a currency “reset”, it will happen suddenly and without warning. If they announced the “reset” several weeks or even days or even hours in advance, everyone would instantly dump dollars and buy whatever currency or tangible forms of wealth that would be sure to hold or increase its value after the “reset”.
Announcing the “reset” in advance would undermine whatever effect the government hoped to achieve. Therefore, it’s virtually impossible that any legislative act would give advanced notice of the specific day when a currency reset is scheduled to take place.
Whoever is reading HR 2847 to announce a currency reset for July 1st is misreading the bill’s language. That misreading might be accidental or it might be intended to spur sales of some product or service. But if they’re misreading the significance of July 1st, they’re likely also misreading the HR 2847’s significance as to the “petro-dollar disappearing” etc.
I won’t be surprised if/when the fiat-/petro-dollar disappears. That disappearance is probably inevitable. But it’s not going to happen on July 1st and it’s not going be caused by HR 2847.