While doing my normal surfing on the internet I ran across an intresting and distributing article by Zero Hedge that references an article written inthe Economist in 1988.
To put this in context I don't think this was much of a prophecy as there has been a lot of talk about a one world currency for a long time. What got me was the imagery around this image and what is going on in the crypto space as we enter 2018 in a couple of months.
The Phoenix is an old symbol of rebirth, the cover shows money burning and the coin around the Phoenix's neck with the year 2018. There were some events that happened around this time that would cause this type of article to be written so it's not like this guy was clairvoyant or even privy to some clandestine information.
Monday, October 19, 1987
This is referred to as Black Monday when the casino knows as the stock market had a huge correction.
The Dow Jones Industrial Average (DJIA) fell exactly 508 points to 1,738.74 (22.61%)
wikipedia
This article was written in January 9, 1988 so they had time to analyze what problems led to the crash and what would have to happen to keep it from happening again. Apparently we didn't learn our lesson and a similar event happened in 2008. Most people accredit the housing crisis to what gave birth to Bitcoin.
Article Overview
Most of the ideas in the article are on point some no so much. I think that no one in the 1988 financial sector would have any forethought into the what the internet has become now. The article represents this world currency as the "Phoenix Zone".
The biggest change in the world economy since the early 1970’s is that flows of money have replaced trade in goods as the force that drives exchange rates.
I feel that this was an obvious assessment. The value of economies is based more on the flow of money than the goods they produce. This is one of the reason that so many nations in Africa are poor even though they have an abundant amount of natural resources. They give up useable resources for fiat paper.
In all these ways national economic boundaries are slowly dissolving. As the trend continues, the appeal of a currency union across at least the main industrial countries will seem irresistible to everybody except foreign-exchange traders and governments. In the phoenix zone, economic adjustment to shifts in relative prices would happen smoothly and automatically, rather as it does today between different regions within large economies
This is a pretty good description of cryptocurrencies which is why governments are having such a hard time with them.
The phoenix zone would impose tight constraints on national governments. There would be no such thing, for instance, as a national monetary policy. The world phoenix supply would be fixed by a new central bank, descended perhaps from the IMF.
Well there is no central authority Bitcoin but it does have a fixed supply. I guess they were 50/50 on this.
As the next century approaches, the natural forces that are pushing the world towards economic integration will offer governments a broad choice. They can go with the flow, or they can build barricades
This pretty much shows the state of where the people vs the governments are right about now. Some are embracing it some are not.
Final Thoughts
The government and IRS are trying to treating crypto more like stock investments which is not accurate. Imaging visiting a country and getting the local currency to enjoy your vacation. Would it seem reasonable to keep track of the exchange rate that you got the local currency at? Then for every souvenir and dinner you buy to keep track of the exchange rate so you can pay taxes on it? This is a perfect example of archaic thinking!!!
Since the government is so backwards we have no choice but to conform to keep the mob squad off our backs. I think that in the coming years if/when the dollar crashes they will have to reconsider their stances. Either be at the forefront or get left behind.
This article written 30 years ago shows that bitcoin has been in the making for a very long time. The idea of freedom from central authorities is not a new one. People are losing faith in fiat and letting math/encryption decided what has value not men in suits.
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