Extra text to 24 Nov
Today I found a bit of sad news, the United
States economy did grow a full 8.2% (on annually basis) and a lot of
German banks are not rated AAA in fact but in reality something like BBB
or A+. Also the biggest economies in Europe were allowed to bypass parts
of the Euro deal that says governmental spending is at most at 3%
borrowed money. This is shit for the harshness of the Euro...
So how can I ever create a thing called the NightmareOnTheUS$ in circumstances like this?
This is horrible to me! A full 8.2% growth in America while the Euro will turn itself into the most cheap coin on the face of this planet! Brr, how to react upon this?
Lucky me today the coin fell into my brains and I came up with a plan that was so evil! Just so evil that once you understand the dimensions of this you will cry from fear...
Look these are my plans for the coming years:
In 2005 the platoons of the WarTribunal will raid the United Nations building in New York and we will grab world power, yes we will have world domination power and my military rule will set in on the entire planet! Also I will make a 'holiday throne' or a 'holiday desk' at the White House while forcing the US government to rebuild the TwinTowers so they can rule from there... But that is only the beginning of course, look what is far more evil:
In the year 2007 at date 21 July I will gather before my eyes all financial ministers and all central bankers from all countries on this planet and I will give them the following orders;
"In five days, on 26 July 2007, at the exact (Global or Greenwich) time 12.00.00,00 hours you all will devaluate you currency 10% against all other currencies! So these are your orders, all will at the same time devaluate precise 10% so that I have wiped out exactly 10% of the total wealth on this planet!" (And ha! I start boosting at the financial ministers and telling fairy-tales like 'It all started long ago with the creation of the NightmareOnWallStreet and hedge funds stole for me 2000 points from the DOW' And I bla bla on and I boost on and again I repeat my instructions of all at the same time devaluating 10%!)
So America if I were you I would watch out and nicely make that NightmareOnTheUS$ for me and turn stuff into 63 Euro cent for one US buck! Otherwise I will strike on 26 July 2007, so do not say that I did not warn you!
So far the fun part, we will see together how far the so called WarTribunal will come and if those platoons really would raid the UN building in New York. To be honest I doubt the reality of this particular scenario. But when you as a reader have participated this deep into this story you are very likely not a member of the most stupid Quarter of this planet. And you will likely think that when all countries at the same do devaluate exactly 10% that in that case in practice just nothing can happen. (Because at the same point in time every country, every central bank does exactly the same act and this cancels out against each other...)
That looks reasonable but there is this little and fundamental problem that information can travel at most at the speed of light and therefore all 'devaluations' need all approx 1/6-th of a second to cover the entire planet (and all money trading places). So only when two 'devaluations' have met each other the result is nothing.
But 1/6-th of a second is still 0,16666... second and as the saying goes 'a split second is an ocean of time in big markets'. Now we make the above order for 'simultaneous devaluations' a bit more complicated.
Beside giving me the exact time at the central bankers and so, I tell them to keep this secret to the public (just like now often is at hand). Also evil henchmen of me (hedge men or so...) are all given a bag of exactly one million (US$ or Euro is not important) and then every one of them is told to go to some 'money trading point' in each country.
Suppose furthermore there are exactly 100 currencies alive in 2007 and that the 100 'countries' all have different distances to each other. Suppose also that in this 'light speed' driven market the prices on the screen are the 'settlement prices' at that time.
To all those smart hedge fund cells I would like to ask: What is the maximum of money such an evil henchmen could make with one million of standard currency? (Of course the henchmen can place orders at any given instant of time, no transactions costs, the WYSIWYP system on your trading system [WYSIWYP = what you see is what you pay] and the rest of simple assumptions there are...)
Now you are at the end of the intro to the NightmareOnTheUS$.
a little greeting card to all money traders.
Ending words, another 'fairy tale':
A long long time ago in some fictional novel I came upon the next idea about money:
The standard currency there was some SUH meaning some 'Standard Unschooled Hour' of labor. So money was not related to gold or to 'nothing' but to one hour of simple work. I have always considered this as some nice idea, when some real world economy would emerge with some real World Trade Organization (and not that muppet show we now have) this kind of pricing could shed light on stuff.
it is only theory and not needed to implement in practice (because in
poor parts of the world a simple bread would cost much more SUH and
practice will not change via this only). Still I think it would be some
good tool in looking how rich a country is in practice, also never I
have come across statistics that look at life in this way...
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