THE WAR OF COINS SUGGEST TO PRESIDENT BOLSONARO

THE COINS OF WAR AUTHOR – PROF. SÉRGIO BORJA – SUGGESTED THE PRESIDENT DILMA A WORLD SOLUTION FOR THE CRISIS OF BRAZIL, CHINA AND EMERGING COMMODITIES PRODUCING COUNTRIES TO LEAVE THE CURRENT STAGFLATION

Posted on February 12, 2016

THE COIN WAR AUTHOR SUGGESTES A WORLD SOLUTION FOR THE CRISIS OF BRAZIL, CHINA AND ALL EMERGING COMMODITIES PRODUCING COUNTRIES

Mantega, Dilma and Lula should not have stopped traveling around the world, moving from institution to international institution [1] and from country to country gaining their consensus to fight the Currency War, Currency War, Currency War or Monetary War as they want others! We are about to start this fight because the solution of the crisis, which is global and systemic, cannot be done only by Brazil, on an endogenous level, under the risk of embittering another ten years of being despoiled internationally, shaking together the health of our country. national state and the economic bases of our civil society hit by the credit bubble tsunami induced by dollar monetary inflation. In October 2010 and in the following months within the scope of the Ministry of Finance, this reaction started, which should not have ceased, and even today, at the beginning of the tsunami that we are going to go through and into which we are entering, the whole world (observe the fall of the stock markets around The fall and monetary inflation of all world countries is induced by inflation and monetary expansion of the dollar towards the yuan or renmimbi Chinese currency, which as a major producer and exporter, conditions the American and monetary positioning of the rest of the world. countries subordinated to the dollar or not, as well as those under the euro area. The monetary inflationary acceleration is like a rain where the various drops fall together under the force of gravity. However, the difference, of monetary rain or monetary devaluation, is different from the vector of obedience to the law of gravity that maintains the same acceleration for all the drops, being that the inflation or rain and fall of the different currencies occurs in a different way and with different accelerations depending on the choking or not of your dollar payment methods. Stuart Mill in his Principles of Political Economy decanted very well the illusion of the face value of the coin, notably in a fiduciary system without gold backing, when he dealt in Chapter XVIII of his work cited on “The International Values”. He says: “§1. The values of goods produced in the same place, or in places close enough for capital to move freely between them – say, for simplicity, of goods produced in the same country – depend (without temporary fluctuations) on their cost of production. But the value of a commodity brought in from afar, especially from a foreign country, does not depend on its cost of production in the place where it comes from. What does it depend on, then? The value of a thing anywhere depends on the cost of purchasing it there. And that cost, in the case of an imported article, is the cost of producing the thing that is exported to pay for it. Since all trade is in reality a barter (since money is only an instrument for exchanging things for one another), to simplify we will start by assuming that international trade takes place in the form of an effective exchange of one commodity for another – what, moreover, it always is, in reality. From what we’ve seen so far, we found that all exchange laws are essentially the same, whether money is used or not, as money never governs these general laws, but always obeys them. ” [2] Completing this reflection on the cost of commodities modernly Robert Boyer and Daniel Drache in their work States against Markets [3] say about the formation of the cost of a product, “for example, the law of a simple price throughout the side for the same product is far from a reality. We find Big Macs all over the world, but the price varies according to local conditions. Very clearly, transnational companies exploit national differences (branded comparative advantages) for their own benefit without, however, eroding them. Once again, this is another piece of evidence that national states count. ”[4] Mickël Joubert and Lionel Lorrain in their work Économie de la mondialisation discuss the theoretical effects of all theories on trade after establishing as a premise a real picture of the World Export Structure which, in gross terms, stands at 12% on primary products; 23% on services and 65% on manufactured goods through mercantilist contributions; classic relative to absolute and relative advantage; neoclassical analysis including the Leontief paradox view with its product inputs model making these theories provide instruments of analysis of the current World Trade through the new contributions of P. Kenen (1965), R. Findlay and H. Kierzkoski (1983) , P. Keesing (1966) and R. Vernon (1966) arriving at the analysis of imperfect competition through the analysis of the models of J. Brander and P Krugman (1983) with the price contradictions within the monopolies that spread through several countries creating contradiction between their own prices due to monetary distortion or related idiosyncrasies. [5] The statement, in current terms, must pass through a perspective of currency analysis because in the time of Stuart Mill the currency was still metallic and backed by gold in a fixed exchange system. Now, with the dollar expansion process due to the paradox detected by Robert Triffin in the 1960s, [6] the dollar loses or abandons its gold ballast to become a fiduciary currency and seeks, according to the vectors established in its dilemma by Triffin, to accompany the expansion of the world economy to provide means of solution for business and money trafficking throughout the globalized sector under his empire. Thus, the value of the currency suffers an inflationary process and the key currency of global commercialization, the dollar, which induces, along with the yuan, an unconventional monetary policy on the part of the other countries that start to expand and change their exchange rate. . [7] We will have to isolate, or relativize, in part the great effect of the withdrawal of Americans from the oil trade, due to the substitution of their imports by shale, at the rate of one million barrels a day to world production and the decision of Arabia Saudi [8] not to decrease its production with the disorganized entry of oil supply in the Iraq area and also the entry of Iran in the market which causes the lower values of this commodity in the market (Today, 16.02.2016, according to news of the newspaper Portugal’s public several countries froze oil production in these terms https://www.publico.pt/economia/noticia/arabia-saudita-russia-venezuela-e-qatar-aceitam-congelar-producao-de-petroleo-1723453) However, other commodities are downgraded by the internal inflation process of their national currencies caused by endogenous monetary expansion, as stated by Christian Pifster and Natacha Valla in their jointly written article Les politiques monétaires non conventionnelles affirming flatly that “PMNC (unconventional monetary policies) engender the fear of a distortion in the price of assets due to the uncertainty of negative rates and the problems of the moral level induced by the presence of central banks (interfering) in financial markets. ”[9] HongBing Song’s thesis in his work La Guerre des Monnaies, La Chine et le nouvel ordre mondial”, written in 2007, written nine (9) years after I first wrote The Currency War, in 1998, in the Jornal do Comércio, in a summarized article putting together with another article that preceded it, the Real and the Dollar, and the Southwest Asia work written in Gazeta Mercantil do Rio Grande do Sul on August 17, 1996 that traces all principles of the phenomenon that occurred at that time in the world giving the basic guidelines and characteristics of what I named, 2 years later, on 15.07.1998, in an article published in Jornal do Com trade entitled A GUERRA DAS COINS, anticipating in the world, directly from Porto Alegre, by a humble professor at PUCRS of Constitutional Law, Political Science and International Relations, named after the War of Currency theory, with its variables dated 2007 and written by HongBing Song [10] and then, in 2012, the work of James Rickards [11] and Jacques Mistral with his work Guerre et Paix among les Monnaies [12] and Massimo Amato “L´Enigme de la monnaie” [13] . I anticipated all these writers with the view that, starting with the Triffin paradox or dilemma in which the American currency embarked on the path of being a fiduciary currency and no longer based on the gold standard, the public and private indebtedness process expanded, likewise, to induce the other national states to expand, in the same way, their circulating means as Hongbing Song puts on the American Debt to pages. 329 making a picture of the American monetary expansion in the following pages from the year 1940 to 2007 and still making a projection from the year 1900 to the year 2020 of the inflationary picture of this debt. [14]

So it is that this whole process of inducing the dollar currency and its hegemony even induces the European Union to control the BRICS and 78% of business in the world in the same way to an inflationary process already described by me:

Other effects of the War of the Currencies http://www.sergioborja.com.br/?p=505

Currency War and Effects on Regionalism: http://www.sergioborja.com.br/?p=1187

THE INFLATIONARY CONFISCO http://www.sergioborja.com.br/?p=1275

Thus, the process of issuing or expanding the monetary base, which from FHC to Dilma, pays more than 1000% of expansion, due to the need to purchase dollars resulting from a surplus balance of payments, with expansion of the internal debt in the acquisition of American currency – internal intermediation – with the control of monitoring the value of the exchange, in reality, lead to a LOWERING OF THE PRICE OF COMMODITIES, OF THE WORK VALUE AND OF MANUFACTURED PRODUCTS AND SERVICES, produced by this process of monetary inflation induced by international inflation of the dollar that enters the national sovereignty bubble. This process does not occur only with Brazil but in a widespread way with all countries that are under the hegemony of the dollar including all members of the BRICS and a total of 78% of the world businesses that are settled in this currency. This process is what causes the ESTAGFLATION debacle and crisis because, together with the inflationary process that corrodes the price of domestic goods, wages and products in general, together with services, there is also a process of stagnation due to the private debt that was induced by the offer of monetary inflation through the National State, which transferred these values to the private sector. Thus, the way to combat this generic problem that ends up cooling the economy of China, which is no longer able to export, or making its costs more and more cheaper, [15] is paradoxical, not discussing here the HEGEMONIC ROLE OF THE DOLLAR as J Mistral in 2014 or Keynes had already put it [16] but, in a practical way, using the dollar itself as a reference value, as was done previously by several governments in Latin America, such as Cavalo Menen in 1990 and FHC’s Real Plan in 1994 , taking care, and here the mission started by the Minister of Finance Mantega is reborn, now, through Dilma and in the midst of a crisis, to re-enact what they had started to build a world front, from the BRICS and under his leadership, taking all the other countries on the dollar mantle to adopt the old currency board or dollarization policy expressed by law, draining the inflationary exchange of their own currency, through their currencies in dollars, three converted into NEW REALS or NEW RUBLES, etc., depending on the country of issue, so that a tectonic plate as close as possible to the European Currency can be built, thus revalidating and updating the assets produced, their commodities devalued by the inflationary process of their internal currencies. causing the international drop and now with the cooling of production in China and other states, due to the increase in supply without demand, due to the withdrawal of the previous market caused by the inflationary process. A monetary renaming, in terms of the dollar, with a negotiation with China, which logically would not obey this mechanism due to the advantages arising from its monetary dumping and social dumping, would, however, bring it closer, its value of exchange rate of the renmimbi, the dollar, due to the drop in the difference between the two (today 16.02.2016 we have the news of a 1% appreciation against the dollar – inform ZH.fls.14) a little of the problems of world competition, retaking the economy better indexes reactivating, through the gain of values of the goods expropriated of its values an injection of revitalization that, by a monetary process, would again induce the activation of the world economy and of the national economies as a whole. This process must be collective and encompass a greater number of states, however, being sure that the United States of America, for creating the problem with its inflationary currency, would not be subject to greater controls, but it would be the beginning of a monitoring of its brand and the final determination of the use of monetary expansion not as a sovereign title but as a relativization of it in the face of the interaction with the other countries of the world that bear the exportation of the American debt and the financing of its military power in the world. In the same way, China, which, in alliance with western oligopolies, in a state policy allied to international capital, serves as a port for the establishment of the greatest degree of competitiveness of business in the globe, would also have, in the same way as giving a limit, conditioned like the Americans, for its competitiveness obtained through monetary devaluations and social dumping. With the revaluation of domestic products, there would be remuneration for labor and capital, thus making it possible to purchase Chinese goods from the United States and Europe, as well as those places of competitive imperfection, such as Brazil with its distortions caused and resulting from the Brazil cost. . Dollarization, similar to that made by FHC, must be collective and international and in combination with the USA, Europe that should adjust its conversion rate and China, in a legitimate increase in dimensions of what were the Smithonian discussions under Nixon giving rise to. a reformulation of the Non-System after Bretton Woods for the establishment of the new guidelines of an International Monetary System and not based solely on the sovereignty of a Hegemonic State but on the Gross Domestic Product of the Planet as a whole. HongBing Song, author of the War of the Coins, Chinese says the gold standard should return, saying that China has acquired a lot of gold in the world to support the yuan. HonBing Song boldly fights the theory espoused by Firedrich a. Hayek, in his work “The Denationalization of Money”, which seeks the withdrawal of the National State and the Public vector for calculating the value of the currency, with the consequent extinction of the reserve value in gold, which, HongBing Song, fights because it considers that power private and few families from the Rothchilds, the power of private banks, is that they are really the problem of the instability of world capitalism that it considers to be the maximum predator. The imperfection of my solution in the face of absolute discussions and diametrically opposed positions, however, working within the relativism of the real situation is a goal of approximation together with verifying the veracity of the theses, for the construction in the future, of a possibility of construction of an international monetary standard that distanced itself from the old concept of sovereignty arising from Jean Bodin and enhanced by the peace of Westphalia, projecting itself from the reality of National States, already in a frank process of globalization or globalization for an interactive relativization of their reciprocal sovereignties, in a international space already determined by the collective interest of all peoples and nations on Planet Earth !!! The authors Robert Boyer and Daniel Drache in their work States against Markets and the Limits of Globalization manifest the belief in the importance of the policies of National States to cooperate with the synergy of globalized and world trade, expressing this conception: “The State – nation, as a structure mediator, marks the strategic difference between winning and losing in a highly volatile international economy. It is therefore a fallacy to reduce State intervention to Keynesian attunement. Modern governments have to provide all the basic ingredients for competitiveness. At the top of the list are education, health, labor training, research and development policies, infrastructure support, competition policy, etc., hardly a lesser role for the State at the end of the millennium. However, both on the left and on the right, state policy goes in exactly the opposite direction. All governments are under pressure to cut spending. The serious conditions of intense international competition are eroding the foundations of the welfare state as we know it. After World War II, all industrialized countries aspired to become modern welfare states. In general, this was achieved through high productivity growth, a stable international order and strong labor movements. If, on the contrary, the conditions were such that the delay in productivity, productivity and growth and the international order deteriorated, social security would be understood by trade as an obstacle to demand and produce innovations. With workers and unions weakened by industrial restructuring and rising unemployment, the state cannot easily protect social rights. Across the Western world, governments are cutting back on pension systems. Despite the appearance of a common trend, there is as much diversity as similarity between nations. ” “At one end, there are open market societies such as Canada, the United States, the United Kingdom, Australia and New Zealand that have experienced mediocre economic performances alongside deepening social inequalities. At the other end, there are social-democratic countries such as Germany, France and Sweden that have also faced serious problems of adjustment and rising levels of unemployment without sacrificing, to the same extent, their social commitments. In addressing the problem, how important are these fundamental differences? This is the critical issue. ”[17] On 12.02.2016 Rua Guatapi 126 – Atlântida – Xangrilá municipality.

[1] – EXAME – http://exame.abril.com.br/mercados/noticias/mantega-existe-guerra-cambial-nao-declarada-603382

[2] Mill John Stuart – Principle of Political Economy – New Culture – 1996 – Book Circle – São Paulo – fl. 159;

[3] – Boyer & Drache – Robert and Daniel – States against Markets and the Limits of Globalization – Piaget Institute – 1996 – Lisbon – pages 14.

[4] – Boyer & Drache – opus citae pages 14;

[5] Joubert Lorrain – Mickael and Lionel – Économie da la Mondialisation – Armand Colin – 2015 – Paris – fl 13 usque 27.

[6] – Graz Jean-Christophe – La gouvernance de la mondialisation – Sciences Politiques-Droit – Ed. La Découvert – 4 eme edition – Paris – 2013 – fl. 21;

[7] Pfister & Valla – Christian and Natacha – Les Politiques monétaires non conventionnelles – L´Econoie mondiale – 2016 – La Decouverte – Paris – 2015 – fls.40 usque 55.

[8] – Chevallier – Agnès – Vue d´ensemble: le temps des doutes – L´Economie mondiale 2016 – La Découverte – Paris – 2015 – fl.7;

[9] Pfister and Valla – Opus citae – Les Politiques Monétaires non conventionnelles. – L econonie Mondiale – 2016 – La Découverte – fl. 48 – Le risques de uelle nature?

[10] – Song – HongBing – La Guerre des Monnaies – La Chine et le nouvel ordre mondial – Currency Wars – 2007 – Edition Le Retour aux Sources, 2013 – Paris – ISBN – 978-2-35512-054-1;

[11] – Rickards – James – Currency Wars – The Making of the Next Global Crisis – 2012 – Marker Ediora Queluz de Baixo – Portugal – 2014 – ISBN – 978-989-754-052-3;

[12] – Mistral – Jacques – Librairie Arthéme Fayard – 2014 – France – ISBN 978-2-213-66632-7

[13] Amato – Massimo – Les Editions du CERF – Paris – 2015 – ISBN – 978-2-204-10262-9;

[14] – Song – HongBing – La Guerre des Monnaies – opus citae – pages 331;

[15] Busanello – Horacio – China El Gran Desafio – Planeta – 2015 – pages 141;

[16] Joubert et Lorrain – Mickael and Lionel – Economie de La Mondialisation – opus citae – pages 140 3.3;

[17] State against Markets – Robert Boyer and Daniel Drache – Piaget Institute – Lisbon – 1996 – opus citae – pages 17

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Posted on February 12, 2016

THE COIN WAR AUTHOR SUGGESTES A WORLD SOLUTION FOR THE CRISIS OF BRAZIL, CHINA AND ALL EMERGING COMMODITIES PRODUCING COUNTRIES

Mantega, Dilma and Lula should not have stopped traveling around the world, moving from institution to international institution [1] and from country to country gaining their consensus to fight the Currency War, Currency War, Currency War or Monetary War as they want others! We are about to start this fight because the solution of the crisis, which is global and systemic, cannot be done only by Brazil, on an endogenous level, under the risk of embittering another ten years of being despoiled internationally, shaking together the health of our country. national state and the economic bases of our civil society hit by the credit bubble tsunami induced by dollar monetary inflation. In October 2010 and in the following months within the scope of the Ministry of Finance, this reaction started, which should not have ceased, and even today, at the beginning of the tsunami that we are going to go through and into which we are entering, the whole world (observe the fall of the stock markets around The fall and monetary inflation of all world countries is induced by inflation and monetary expansion of the dollar towards the yuan or renmimbi Chinese currency, which as a major producer and exporter, conditions the American and monetary positioning of the rest of the world. countries subordinated to the dollar or not, as well as those under the euro area. The monetary inflationary acceleration is like a rain where the various drops fall together under the force of gravity. However, the difference, of monetary rain or monetary devaluation, is different from the vector of obedience to the law of gravity that maintains the same acceleration for all the drops, being that the inflation or rain and fall of the different currencies occurs in a different way and with different accelerations depending on the choking or not of your dollar payment methods. Stuart Mill in his Principles of Political Economy decanted very well the illusion of the face value of the coin, notably in a fiduciary system without gold backing, when he dealt in Chapter XVIII of his work cited on “The International Values”. He says: “§1. The values of goods produced in the same place, or in places close enough for capital to move freely between them – say, for simplicity, of goods produced in the same country – depend (without temporary fluctuations) on their cost of production. But the value of a commodity brought in from afar, especially from a foreign country, does not depend on its cost of production in the place where it comes from. What does it depend on, then? The value of a thing anywhere depends on the cost of purchasing it there. And that cost, in the case of an imported article, is the cost of producing the thing that is exported to pay for it. Since all trade is in reality a barter (since money is only an instrument for exchanging things for one another), to simplify we will start by assuming that international trade takes place in the form of an effective exchange of one commodity for another – what, moreover, it always is, in reality. From what we’ve seen so far, we found that all exchange laws are essentially the same, whether money is used or not, as money never governs these general laws, but always obeys them. ” [2] Completing this reflection on the cost of commodities modernly Robert Boyer and Daniel Drache in their work States against Markets [3] say about the formation of the cost of a product, “for example, the law of a simple price throughout the side for the same product is far from a reality. We find Big Macs all over the world, but the price varies according to local conditions. Very clearly, transnational companies exploit national differences (branded comparative advantages) for their own benefit without, however, eroding them. Once again, this is another piece of evidence that national states count. ”[4] Mickël Joubert and Lionel Lorrain in their work Économie de la mondialisation discuss the theoretical effects of all theories on trade after establishing as a premise a real picture of the World Export Structure which, in gross terms, stands at 12% on primary products; 23% on services and 65% on manufactured goods through mercantilist contributions; classic relative to absolute and relative advantage; neoclassical analysis including the Leontief paradox view with its product inputs model making these theories provide instruments of analysis of the current World Trade through the new contributions of P. Kenen (1965), R. Findlay and H. Kierzkoski (1983) , P. Keesing (1966) and R. Vernon (1966) arriving at the analysis of imperfect competition through the analysis of the models of J. Brander and P Krugman (1983) with the price contradictions within the monopolies that spread through several countries creating contradiction between their own prices due to monetary distortion or related idiosyncrasies. [5] The statement, in current terms, must pass through a perspective of currency analysis because in the time of Stuart Mill the currency was still metallic and backed by gold in a fixed exchange system. Now, with the dollar expansion process due to the paradox detected by Robert Triffin in the 1960s, [6] the dollar loses or abandons its gold ballast to become a fiduciary currency and seeks, according to the vectors established in its dilemma by Triffin, to accompany the expansion of the world economy to provide means of solution for business and money trafficking throughout the globalized sector under his empire. Thus, the value of the currency suffers an inflationary process and the key currency of global commercialization, the dollar, which induces, along with the yuan, an unconventional monetary policy on the part of the other countries that start to expand and change their exchange rate. . [7] We will have to isolate, or relativize, in part the great effect of the withdrawal of Americans from the oil trade, due to the substitution of their imports by shale, at the rate of one million barrels a day to world production and the decision of Arabia Saudi [8] not to decrease its production with the disorganized entry of the oil supply in the Iraq area and also the entry of Iran in the market which causes the lowering of the values of this commodity in the market (Today, 16.02.2016, according to news of the newspaper Portugal’s public several countries froze oil production in these terms https://www.publico.pt/economia/noticia/arabia-saudita-russia-venezuela-e-qatar-aceitam-congelar-producao-de-petroleo-1723453) However, other commodities are downgraded by the internal inflation process of their national currencies caused by endogenous monetary expansion, as stated by Christian Pifster and Natacha Valla in their jointly written article Les politiques monétaires non conventionnelles affirming flatly that “PMNC (unconventional monetary policies) engender the fear of a distortion in the price of assets due to the uncertainty of negative rates and the problems of moral pressure induced by the presence of central banks (interfering) in financial markets. ”[9] HongBing Song’s thesis in his work La Guerre des Monnaies, La Chine et le nouvel ordre mondial”, written in 2007, written nine (9) years after I first wrote The Currency War, in 1998, in the Jornal do Comércio, in a summarized article putting together with another article that preceded it, the Real and the Dollar, and Southwest Asia work written in Gazeta Mercantil do Rio Grande do Sul on August 17, 1996 that traces all principles of the phenomenon that occurred at that time in the world, giving the basic guidelines and characteristics of what I named, 2 years later, on July 15, 1998, in an article published in Jornal do Com

14.

14;

21;

Prof. 14; 21; 14; 21;