Now that Britain may decide to leave, the EU is being touted as the best thing since, what? The end of World War II? The end of communist aggression? Sliced bread?
The European fortress is showing some cracks in how it views international trade letters of credit. Without such instruments, businesses cannot buy or sell goods. The buyer's bank sends a document to the seller's bank to guarantee the buyer will pay for the purchase on receipt of the shipment. When the buyer has possession of the goods, payment is then transferred to the seller's bank account. Simple. Logical. This is how business has been done for as long as there have been merchants and consumers.
The Arabs still use the original ancient system, made modern by telephone. Across the Middle East, funds transfer accounts with a simple phone call. Money is given to the local money changer who in turn calls his contact where the money needs to go. He tells his associate so-and-so has given him money to pay so-and-so for such-and-such. He then asks the associate to give so-and-so at his end the amount of money so the buyer can get his merchandise. the associate agrees and makes a notes the debit to the account of the caller. Easy. Logical. No chance of misdirected funds or theft by hacking.
An oversimplified demonstration of trade, but it serves the point.
Now the EU wants to add more regulation to the practise in the name of protecting taxpayers from the inability of the buyer's bank to pay due to failure in the interim. Like a bank will collapse overnight? When the financial gurus warn such things can happen, the EU and the Central Banks flip levers to blow steam and magnify their voices as they shout they are great and powerful and safeguards are in place, and their are warning signs and these things are the result of a series of events which can be monitored. One single event can't through a bank into failure. 'I AM EU, THE GREAT AND POWERFUL.' Yet more regulations are called for? When the Wizard of OZ said it, Toto proved to Dorothy it was a sham. Are we not as smart as a little dog?
Buyers and sellers agree the only purpose of these added regulations is to slow down a system already downshifted to first gear. They say it will eliminate small business from the growth opportunities international trade within the EU offers. However, EU regulations don't extend receivers outside the European network, like the US, China, Russia, and India to name a few.
The is a huge difference between being in a network and being caught in a net. The citizens of Great Britain appear to be waking to the difference.
The key to successful international trade is having international money. Gold has served as international money for aeons. Gold has lasted because it is the most reliable instrument for trade mankind has ever known.
Consider this as an example. When an American travels to Europe, he converts his dollars into euros and loses some value in the exchange. Gold is universal. Gold buys anything anywhere. Once currency is converted into gold, there is no lose of value.
To learn more about why you should own gold and how to get it click here.
The European fortress is showing some cracks in how it views international trade letters of credit. Without such instruments, businesses cannot buy or sell goods. The buyer's bank sends a document to the seller's bank to guarantee the buyer will pay for the purchase on receipt of the shipment. When the buyer has possession of the goods, payment is then transferred to the seller's bank account. Simple. Logical. This is how business has been done for as long as there have been merchants and consumers.
The Arabs still use the original ancient system, made modern by telephone. Across the Middle East, funds transfer accounts with a simple phone call. Money is given to the local money changer who in turn calls his contact where the money needs to go. He tells his associate so-and-so has given him money to pay so-and-so for such-and-such. He then asks the associate to give so-and-so at his end the amount of money so the buyer can get his merchandise. the associate agrees and makes a notes the debit to the account of the caller. Easy. Logical. No chance of misdirected funds or theft by hacking.
An oversimplified demonstration of trade, but it serves the point.
Now the EU wants to add more regulation to the practise in the name of protecting taxpayers from the inability of the buyer's bank to pay due to failure in the interim. Like a bank will collapse overnight? When the financial gurus warn such things can happen, the EU and the Central Banks flip levers to blow steam and magnify their voices as they shout they are great and powerful and safeguards are in place, and their are warning signs and these things are the result of a series of events which can be monitored. One single event can't through a bank into failure. 'I AM EU, THE GREAT AND POWERFUL.' Yet more regulations are called for? When the Wizard of OZ said it, Toto proved to Dorothy it was a sham. Are we not as smart as a little dog?
Buyers and sellers agree the only purpose of these added regulations is to slow down a system already downshifted to first gear. They say it will eliminate small business from the growth opportunities international trade within the EU offers. However, EU regulations don't extend receivers outside the European network, like the US, China, Russia, and India to name a few.
The is a huge difference between being in a network and being caught in a net. The citizens of Great Britain appear to be waking to the difference.
The key to successful international trade is having international money. Gold has served as international money for aeons. Gold has lasted because it is the most reliable instrument for trade mankind has ever known.
Consider this as an example. When an American travels to Europe, he converts his dollars into euros and loses some value in the exchange. Gold is universal. Gold buys anything anywhere. Once currency is converted into gold, there is no lose of value.
To learn more about why you should own gold and how to get it click here.
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