Gold Versus Co2 Bancor, Why Are Gold Bugs Scared?

…As we noted above, the US dollar is already Bancor, in the fiat money sense that its creation and circulation has no need at all to relate to fundamentals. Not for nothing, ‘Time’ magazine in 1999 named Keynes as one of the 20th century’s most influential persons, writing: “His radical idea that governments should spend money they don’t have may have saved capitalism”.

With a CO2 Bancor, capitalism can create virtual money and survive the final energy crisis, when the after-peak oil fall in global energy supply begins to be really serious, well before 2020. Other natural resource stress points and strangleholds can be added. These affect everything from iron ore and coal transort and supply, to water and soil resources. All need massive remedial investment spending to avert serious and permanent shortage, making it very desirable to have a new world reserve money, with a tendency to fewer zero’s after the spending need estimates.

The supposed objective of CO2 Bancor as distilled to the world press and media since early 2009 is to organize and facilitate weaning the world economy off oil, coal and gas, managing world currency instability, and preventing the present recession to tilt into sharp deflation, or explode into hyperinflation. The long and difficult adjustment process away from fossil energy will be so costly that stress to the US dollar would likely be fatal. Finally, proponents of CO2 Bancor also hope or believe their new monetary plything would restore confidence – the basic ingredient for launching any new money. This sticking point is the most difficult for Sound Money defenders, who point out that “Carbon Currency” is a revolutionary threat not only to all existing moneys, but also to the economic system.

Market Oracle