On July 12, 1722, William Wood (1671–1730), who was a hardware manufacturer, ironmaster, and mintmaster, received a contract from the British Crown to strike an issue of Irish coinage from 1722 to 1724. He also struck the ‘Rosa Americana’ coins of British America during the same period. Wood’s coinage was extremely unpopular in Ireland for being overvalued in monetary value compared to the intrinsic metal value. It was seen as the King attempting to create money from nothing or fiat despite the fact they were coins.

The British coins minted for Ireland were recalled and exported to the American colonies. Wood was also granted a patent to mint 300 tons of coppers for the North American Colonies over a 14-year period for an annual fee to the Crown of £300.149. He produced the “Rosa Americana” coinage which was very attractive, but they were an alloy of 75% brass, 20% tutenague, 5% silver. One pound of the alloy was to produce 120 halfpence, which was a substantial profit of about doubling his money. The obverse depicted the laureated head of George I, while a Tudor rose with the inscription ROSA AMERICANA, UTILE DULCI was on the reverse.

In response to the Wood contract by the British Crown, Massachusetts issued small change bills to compete with Wood’s Rosa Americana coinages being introduced into New England. They issued in 1722 this Hexagonal Three Pence, as well as a two and one pence paper note. This issue of small change paper notes was authorized in June 1722. These geometrically shaped parchment notes were clearly authorized in Massachusetts in response to the Rosa Americana flood of coins from Britain.

Wood’s effort was a failure as was his Hibernia series in Ireland. Their lightweight and overvaluation rendered them unacceptable as money by the American colonists as well as the Irish. Therefore, the rejection of Wood’s underweight coinage even took place during the extreme shortage of small change shortage that created a real crisis economically. The failure of the Rosa Americana series to be accepted by the Colonists is why so many of these coins remain in uncirculated condition today.

Shortly before his death in 1730, Wood proposed to the Board of Trade that he mint coins in gold and silver for the colonies at 75% of the sterling rate once again a scheme to overvalue the coinage. This scheme was rejected by the Crown based upon his previous failures.

QUESTION: Hi Martin,
I was unable to attend your WEC in Orlando but purchased it to view remotely. I’ve read the vertical market report and look forward to watching the video of the even when its ready. My only question is with regard to currency. With my currency in AUD I realise the place to be is in the DOW however with you’re previous reports of Australia being one of the few countries with Super Annuation and the fact longer term you have predicted the AUD to surpass the USD will investing in the DOW be detrimental on a purely currency basis or will the USD rally against all currencies before many years ahead seeing the AUD rally against it? Is the Aussie Dollar included when you say all other currencies etc or is it unique like you’ve mentioned before in a 2010 down under report?
Thanks for all the effort you go to helping us all navigate through these interesting times.
Cheers,
G

ANSWER: The US$ has been moving higher against the A$ since 2011. It has NOT reached the Yearly Bullish Reversal which stands at 14252 on the cash. The technical resistance stands at the 160 and 170 levels. There is no indication that the US$ will make all-time record highs against the A$ just yet.  Exceeding that 14250 area will ring the alarm bell for the A$.

Here are the technicals for the Dow in A$. Here we have elected four Yearly Bullish Reversals whereas, in the currency, we have not elected any so far. This makes the 14252 number very important.

QUESTION: You have said that coins were still fiat and not tangible hard money. Nobody else has said that. Can you support that statement?

DS

ANSWER: Of course. During the American Colonial period, there was a shortage of silver in particular in Britain. They impose restrictions on what coins could be used to pay Americans for anything. That restriction was imposed on silver and gold. Therefore, payment to Americans from Britain was always in copper coins. If Americans wanted to buy something from Britain, it was typically demanded in silver or gold. This was one of the reasons for the American Revolution.

Because of these restrictions, the monetary value of copper coins was twice its actual metal content. All governments produced coins ONLY at a profit, which is called the seignorage. Here is a table of the weight and metal content of a U.S. penny. Not only has it declined in weight, in 1982 it ceased being a copper-based coin. The penny today is zinc copper plated to maintain the appearance. The price of copper became worth more than 1 cent and that was not profitable. In May 2012 Canada stopped minting one-cent coins altogether became the metal content exceeded its value ending a tradition since 1858 when Canada established its own currency.

Even in ancient Roman times, the mines belonged to the government. They financed their spending by producing new coinage every year. That covered about 80% of their budget. They set the value of the coin which was ALWAYS over the intrinsic metal content. So no matter what people you look at, the coinage value was ALWAYS greater than its pure metal content. Even Bretton Woods fixed the price of gold at $35 per ounce in 1944. They failed to raise that value and it eventually caused the monetary system to collapse in 1971. That was the very same result we see in the penny as well as the debasement in the Roman Empire of the silver coinage.

Therefore, anyone who tells you that ONLY paper money is fiat, they have absolutely no idea of the monetary system and how it has evolved with time. ALL money, when fixed in value by the government, is fiat. Even the infamous Soros attack on the British pound was based upon Britain trying to “fix” the pound at a high rate within the European Rate Mechanism at a high rate for pride.

Only a floating exchange rate system ends the fiat. So yes – that means as long as the “paper” dollar floats in value on world markets, it is not actually fiat and more than Bitcoin trading. The term “fiat money” means an arbitrary order or decree declaring the value to be fixed. The dollar was “fiat” when it was arbitrarily established by Roosevelt at $35 to the ounce of gold.

Today. as long as a currency floats, it is not an arbitrary declaration of its value by the government and is therefore not “fiat” as popularly stated by the hard money crew. This mythical idea that a currency should be a store of wealth has NEVER existed even once in history from one decade to the next. Those who argue for such a system are incapable of comprehending the business cycle and like Karl Marx want to freeze the system because they cannot cope with it.

Most people do not understand that there is the Eurogroup, which is an informal body of finance ministers from the Eurozone member states that are intended to discuss matters relating to their countries’ common responsibilities related to the Euro.  They do not keep any minutes so nothing emerges with respect to policy. There is now a clash building between this Eurogroup and that of the European Commission. The Eurogroup will most likely oppose the EU Commission’s plans for an EU finance minister. This, of course, is one more step toward federalizing Europe. The view in Brussels is that their dream project is collapsing. The answer is not more freedom, but to centralize power to prevent the collapse of the Euro.

The Commission wants to impose its own finance minister over the Eurogroup and in turn, the Eurogroup will insist on having its own presidency. There is a rising belief within the Eurogroup that it should delineate the role of the Eurogroup from the role of the Commission. They see the Commission as attempting to grab more power unto itself.

Its main task is to ensure close coordination of economic policies among the Eurozone member states and promote conditions for stronger economic growth. This was seen as a critical element to maintain stability in the Eurozone as a whole.

However, as I have made clear before, the failure of the euro has been due to the refusal to consolidate the debts. Then you would have had a clean federal European government and each member state would then have its own budget that would not be dependent upon the federal government. Now because of this refusal to consolidate the debts from the outset, we have the idea of creating an EU Finance Minister who will then have dictatorial powers over Eurozone members.

This is going far beyond the United States of Europe, but a single government eliminating the sovereignty of individual member states. The USA has a federal government with its debt and 50 states which are all on their own. The Feds are not impacted by the budget of an individual state whereas the structure of the Euro is dependent upon each state. This is also why the EU opposes all separatist movements. The design is seriously flawed.

The Eurogroup exists without any real power collectively. There is no transparency because it had no real power. The group was effectively mandated by governments to conduct financial operations but without any formal means to carry any directive out. The finance ministers have acted with no more success than the ECB. The European austerity policy has been a huge mistake and this has been imposed upon the whole by Germany.

QUESTION: Hello Martin,
Thank you very much for opening my eyes to what is going on in the world. As you well know the public here in Germany is not informed about any problems concerning pensions, banks, economy or trade whatsoever, so most of the people I have spoken to are convinced that “we have never done better”. Everyday news report on the forming government – since the elections.

My first question is: will the Eurozone be in worse trouble than the European countries not belonging to it – if I understood right they can debase their currencies & thus make their goods cheaper. Or shall the worldwide distrust in banks ruin any trade advantages?

My second question concerns my great WORRY, as I´m not a German native, that when the things get worse the foreigners might not be as welcome as they are now. Would it then be better to leave the EU & go back to one´s home country (in the Balkans) or is this idea completely nuts?

Thank you in advance. I hope I´m not taking up too much of your time. Do keep informing those who are ready to listen what to do & when – YOU ARE THE CONSCIENCE OF THE WORLD!!!!

All the best
EZ

ANSWER: Yes I am well aware of what is going on. I appeared on a TV show there and the most curious thing took place. There was a girl who came in dressed in jeans. She appeared to be part of the camera crew, but she was just listening to me. She was not actually working. When I was done, she walked out of the high-security facility, hopped on a scooter, and drove off. She was there to monitor what I would say about government. The same in France. I have been in Europe this week for meetings, both public and private. I have probably spent at least 1/3rd of my life in Europe.

The problem with the single currency is that the policy of austerity creates deflation, causing higher unemployment, and lower economic growth. The idea is that money should retain a store of value quality, which historically has NEVER been the case. This conflicts with the debt issued in Southern Europe and it all about the federalization of Europe. As you are well aware, the AfD is rising and the likelihood of new election come March/April 2018 appears very good.

Now concerning the safety of foreigners. Unfortunately, the rise of the AfD is due to the refugee crisis. What happens as things get worse is that society will turn against ALL foreigners. During the Sovereign Debt Crisis of 1844, there were riots against the Irish immigrants. People viewed their unemployment was caused by foreigners coming in and taking jobs.

In China, there was the Boxer Rebellion (拳亂), which was a violent anti-colonial movement that expanded into an anti-foreign and anti-Christian uprising as well. That took place in China between 1899 and 1901, toward the end of the Qing dynasty.

History warns that when you turn the economy down, people will turn against the foreigners. That is the entire reason the AfD is rising.

Hackers have managed to get $70 million worth of Bitcoin, revealing the risk of all electronic forms of money to which cryptocurrencies are not exempt. The prices keep soaring and requests to add it to Socrates have been coming in so we are complying. With the futures about to begin, this should make it a more transparent market. The problem now is a single trade can be registered just buy one coin to put up prints that do not reflect volume. A future contract will help reveal the true depth of a market.

If we accept the quotes as real, then Bitcoin’s market capitalization is now larger than that of major US banks Citigroup or JP Morgan standing at about $ 220 billion. The problem that emerges is the reclassification legally of Bitcoin. Because it is pretending to be a currency rather than a stock, governments can simply take the latest print and declare that to be a profit and tax you on that number. If the governments would accept Bitcoin as legal tender in payment of taxes, that would be fine. However, if they demand their own currency (dollars) which then forces one to sell Bitcoin to pay the tax, then the price will collapse and they will force you to pay the tax on the inflated number. You can claim you lost money selling it below that figure and they then allow a tax credit but spread out over 10 years. Bitcoin should swap everything to shares and that will eliminate the clash with the government. 

Meanwhile, we will let Socrates generate the Reversals and the timing arrays for the forecast as we do with any instrument. At least it is a computer with no bias. So far, it indicates we are only in a Phase Transition.

However, this run-up began with the November 25th ECM turning point from the 8,000 level, Interesting that the ECM date has market such a Directional Change where Bitcoin and the stock market have taken off marking a clear shift in trend took place.

QUESTION: You wrote: “Once you begin to see the entire universe is governed by the 8.6 frequency, the doors to a hidden order spring wide open.” What do you mean?

ANSWER: The journey of our solar system around the center which revolves as the earth does around our sun annually, takes 25,800 years which is three times 8.6. Now, one solar day is 24 hours. If we take that 24 hours times 60 minutes, we end up with 1440 minutes. Now multiply that by 60 seconds in a minute and we arrive at 86.400 seconds in a day. There is a lot more hidden order in this 8.6 frequency than meets the eye. The key to moving forward in our knowledge is to understand the significance of cycle frequency when absolutely everything has a frequency.

You can kill people with sound. The military has been developing weapons simply using sound waves. This video demonstrates that they can also repel mobs with simply a sound cannon. There were the sound weapons used in Cuba to attack US and Canadian diplomats and their families. This is all about using cycles.

QUESTION: Do you support Trump increasing the debt by a trillion dollars? I thought you were conservative?

PY

ANSWER: Well the first thing you have to do is get a grip on what is a reality. Governments around the globe borrow every single year with absolutely no intention of ever paying off their national debts. So what is the difference? If you think giving the money back to the people is wrong and it is better going out the back door for political contributions, then sorry, I oppose that.

There is no “conservative” v “liberal” when it comes to the debt. They all spend more than they take in and nobody cares about paying off the debts. So I do not care what political persuasion you are, we will end up at the same place when the dice stop rolling. BROKE!

I support cutting income taxes to ZERO. The government should just create the money it needs to cover its expenses. Let’s get real here! All national debts, including Germany, show that on average 70% of the debt is just accumulative interest. So that is money out the back-door.

Rome never had a national debt and the first 500 years they existed by creating money to pay their expenses with minimal inflation because of the economic growth. About 80% of their budget was paid with the creation of new money.

Even the Bible said giving 10% was realistic, not 40% to 60% as we have under the current Marxist style governments in the West.

The first country that wakes up and abolishes income taxes will blow everyone else out of the water. All they have to do is say they will adopt the way the United States became great. There were only indirect taxes between 1792 and 1913. If the nation survived with no income taxes, we can do it again and let the people spend their own money. You will see massive job creation and governments will stop competing with the private sector to borrow money.