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Posts on this website are general "tips" and nothing more than that and should never be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. Sparty's posts nearly always relate to companies that he either holds, has held or intends to hold.

Main ForumWill Energy become the New World Currency

  • The official world currency according to the IMF is the USA's Dollar. All commodities are traded in the US currency. Many 3rd world countries accept US dollars in place of their own currency. Many countries, including China, have their currency linked to the US dollar (they have to print more money to match the USA's printing). So when the USA decided to institute Quantitative Easing (QE), which is a fancy term for printing money, they devalued the “world currency”. The USA has gone through QE I, QE II, and are looking at QE III, all of which are designed to stimulate the USA’s economy and definitely NOT to protect the “world currency”. The result of which is inflation for those countries linked to the US dollar as they do not get the benefit of the newly printed money. Wheat prices have doubled in 1 year and Egypt, one of the biggest importers of wheat in the world. Public unrest and government change occurred.

    With the USA dollar consistently being devalued I see 3 possible safe havens / growth areas. The 1st is in the form of precious metals stocks. The 2nd is with Energy Stocks, with a preference for Oil reserves. The 3rd is in agriculture (fertilizer included).

    Thoughts?

    Alite

  • Hi Alite, What a wonderful question. 1 - 3 all have merit as stores of value.. but it is difficult to work out how you'd go about your daily business... Are you suggesting that each commodity becomes a currency or that currencies should be tied to the commodity prices?

    Back around 10 years ago I suggested (and got some support) the idea of a gold currency exchange... However I couldn't get the finance to start it off... I believe that there are now several variants of my original idea.

  • Hi Sparty, I think that the gold standard is the obvious choice. Gold has, throughout history, been the most prevalent form of currency with silver as the lower coin. Both seem to be re-monotorising of late.

    But the world is now running on energy. Without energy a country will go into recession. Gold is pretty and relatively rare but has relatively few real uses and not as valuable as energy.

    My personal preference is for a world currency like that touted by the IMF with, "Special Drawing Rights" or SMD's. But few unbiased decisions come out of the IMF as they are strongly influenced by their members, specifically the USA. And so I believe a world currency is a long way, if ever, achievable. In between times energy rules.

    Sparty, if your influence has increased in the 10 years since you thought of the gold exchange then maybe you can start an energy exchange. There is a big challenge. :-)

    Alite

  • Hi Alite, I doubt that I have any real clout......

  • Hi Alite, I doubt that I have any real clout...... But I have a trademark for a CarbonETF and own the relevant domain names.

    I think that I might eventually put this together and have had a couple of interesting discussions with parties already running ETF like programs.

    One of the major advantages I have is the non-replaceable, non-contestable domain names that will get very good results in the search engines. That will ensure visibility.

    The biggest problem at the moment is the constantly shifting goal posts re Carbon Credits, RECs et al.

    But as they say...Watch this space.

    (You can find the CarbonETF names here)

  • You are full of surprises

  • The UK is targeting a 50% reduction in their CO2 output. Haw can they do that? The best solution that I know is a Thorium reactor which is free from the concerns of a uranium reactor.

  • A new thought is that Australia can reduce our CO2 production using Ceramic fuel cells. These use gas and deliver 75% of the energy from gas to the home instead of 25% when delivered from a gas fired power station. Too simple. Alite

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