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The Phoenix

XRP - Episode 002 - XRP the "Phoenix" ? A Vision or a Dream? A look at the 1988 Economist Article

By TheScholar | Day-Trading Cryptos | 31 Dec 2020


Hi all,

In my previous articles, I kept mentioning the front cover title of the 1988 Rothschild owned  magazine "the Economist", the title of which was "Get ready for a world currency". In this article, I will try to highlight the main points in this seminal article that predicts/envisions the emergence of a global world currency. To make it easy, I will use bold, underlined and italicized the original article quotes, and I will use bold for my own comments. 

Enjoy!

Some background on how/why/when the article existed in my own world

I have a history with this article. It was issued on the 9th of January, 1988, it was revolutionary in its crystal ball vision, and it lacked an author's name!!! This told me back then that it was "the Economist" magazine's take on the future, not just a single person's imagination!!!

I did an essay on it in one of my Masters program courses. and the front image of the article was forever itched in my head since. Wouldn't it get itched in yours?

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I was young enough at the time of the article's publishing, yet old enough to remember life back in the 1980s. Hit the like button if you enjoyed the 80s, lol

How I came back to the article? XRP was on my radar for a while, I honestly hated it. It was the "centralized crypto" and the "Banks' coin", they said. I did some research, a lot of reading and digging, and came to the realization that it was misunderstanding of terms that led people to "misunderstand" what XRP really is. If you want to know more, check my article, "Is XRP Centralized?" link below. The SEC suing "Ripple" is not equivalent to SEC suing "XRP", but due to the normal confusion in peoples minds, I expected XRP to go to zero in one go. It defied that and it kept spiking, showing some vital signs every now and then. In my mind I was saying, now you die, then, it rises from the ashes again. Then the Phoenix rushed to my head. I had to read that article again. And to my surprise, it was clear after finishing the article that XRP is the "Phoenix".

Highlights from the Article!

Now to the article, I will put main ideas and quotes and then my own comment(s).

1. THIRTY years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency.

Yeah almost time for the realization of this vision, from 1988 to 2021, it is exactly "33" years from the publishing of the unsigned (no author) article that represented the Economist's stand on the matters discussed! 33 is more impressive than 30! More significance and meaning??? Some of you might get the hint!!!

2. The phoenix will be favoured by companies and shoppers because it will be more convenient than today’s national currencies, which by then will seem a quaint cause of much disruption to economic life in the last twentieth century.

This new "World Currency" was called the Phoenix, depicting how it will rise from the ashes of burned banknotes. It will be favored by people for ease of use and normalization of its price throughout the world. We all see how damaged economies damage lives! We finally have the "Phoenix Standard".

But what is the view of governments on such new "standard"? The article answers as follows:

3. Until governments surrender some economic sovereignty, further attempts to peg currencies will flounder.

This is exactly what is happening. No government would agree to such enforced standard. However, at this specific moment in history, where pandemics caused unprecedented panic and damage to economy, even governments are forced to oblige by giving up some of their economic sovereignty. Could this have happened in 2018? Not remotely close.

4. The flows of money have replaced trade in goods as the force that drives exchange rates.

This is totally true. The "flows of money" is the main cause of exchange rate fluctuations. Before the 1970s, "goods trading" was the force behind different exchange rates. Here, the focus is on how exchange rates' fluctuations can really hurt economies. Take South American Countries, Turkey, or Egypt for example. Their national currencies exchange rates against the dollar cause their national economies to suffer dearly.

5. So, how can we solve this problem of exchange rates' fluctuations? The article answers that "with uncoordinated economic policies, currencies can get only more volatile."

We need integration of national economic policies, and we need a "standard".

6. Not only that, but even if we have a standard, it has to be efficient. The article's answer is "as telecommunications technology continues to advance, these transactions will be cheaper and faster still".

Thinking of these words, XRP comes to mind. I welcome any other suggestions. Please enlighten me if you have another guess.

7. But these integrations and fast transactions will cause harm to national governments. Indeed, "the phoenix zone would impose tight constraints on national governments. There would be no such thing, for instance, as a national monetary policy."

8. But who will be in charge if not national governments? The article answers "The world's phoenix supply would be fixed by a new central bank, descended perhaps from the IMF"

9. But what is the role of national governments then? Again, the article clears this as the world inflation rate, and hence, within narrow margins, each national inflation rate, would be in its charge.

So basically, national governments surrender some of their sovereignty, control their own inflation rates and can gauge that by imposing taxes and adjustments in public spending.

10. When we have such "Standard", and governments cannot anymore "PRINT" their way out using things like Quantitative Easing tools, a national government would have to borrow rather than print money to finance its budget deficit. Governments and their creditors would be forced to judge their borrowing and lending plans more carefully than they do today.

Clearly, the author(s) of the 1988 article understood that there was going to be Quantitative Easing and it was going to be huge, and adjusted for it almost 20 years before the term "Quantitative Easing" was even a thing.

11. But how can we get the buy in required? "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.

So, the choices are clear: 1. join us, or 2. stay behind, cry yourself out for sometime, then come back to us.

12. Now, with all this, what about the People, you and I? The article "predicts" that the same kind of flow of moneys "will apply to labour as much as to goods, partly thorough migration but also through technology's ability to separate the worker from the point at which he delivers his labour. Indian computer operators will be processing New Yorkers' paychecks."

How many of you work from home? Let's not talk about call centers. Let's ponder at this 1988 that predicted working from home in the year 2020, 32 years earlier.

13. So, do you buy this as a 1988 article in the Rothschild's owned "the Economist" is just scrambles of an uneducated author, who was shy to even write  his/her name on such an article? Or is this just the heads up notification of a well studied, well planned, new world order scheme? You are the judge, but the article left us with not two options. "Pencil in the phoenix for around 2018, and welcome it when it comes." Note be taken that the article used "when" it comes, rather than "if it ever comes".

==========

If you've made it up to this point, I salute you. Please now, think for a moment, what could the Phoenix be?

It should be digital, because it has to be fast, efficient, cheap, and its supply should be controlled, "Not Mined", and it should be used worldwide with no problems.

99.99% of the cryptocurrencies that exist now do not fit the above description. The only odd one out is XRP (and to a much lesser extent XLM).

 

Please leave your comments below. I'd love to hear what you think. Sorry for the long article, but I tried my best.

I leave a link to the article for you to read. Please try to get a copy of the article on your own to confirm the information given above.

Thanks.

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TheScholar
TheScholar

With passion for science and technology, I strive to help others to gain another perspective.


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