Here is an interesting letter I found in my mail box this morning I thought worth sharing.
Well .. One more purpose of DNotes is to provide equal currency protection to everyone around the world. Think about. That is very significant. DNotes is still at its infancy. At this point, we are all guardians of DNotes. We just need to ensure that this "infant" grows up with a great sense of purpose and committed to become a global solution. That is a worthy mission I am willing to work hard to help accomplish.
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International Quantum Exchange for Innovation 21 June 2015
Dear Alan
Massive Bank Runs May Force Grexit: Another Lehman? Having spoken to a number of top bankers and financiers across Europe in the last 24 hours, the situation is extremely grave in regard to Greece and the Eurozone.
One hundred and one years after the start of the First World War, as Europe may get sucked into the financial equivalent of that war, the following salient points are worth noting:
1. The fragile Greek banking system has been irreparably damaged by the recent bank runs in Greece which have been colossal and measured in billions of euros per week in an accelerating spiral for the last few weeks.
2. All banking hinges on account holders' confidence. No matter how solid a bank is, it will be unable to sustain most large depositors removing their deposits simultaneously. This is what is happening to all Greek banks which is a near impossible situation to control.
3. Events are now marching way ahead of the politicians' abilities and negotiations. Those who think they are the masters and commanders of Greece's destiny in Athens, Brussels, Frankfurt, Washington DC and Moscow are soon going to play second fiddle to the haemorrhaging Greek banking system in regard to which confidence has been mostly lost.
4. The amount of money in the vicinity of a few billion euros that the European Central Bank (ECB) has already pumped in and is willing to extend further to the Greek central bank to sustain the run on Greek banks is now insufficient in comparison to the money required to maintain unrestricted and unencumbered confidence in the failing Greek financial system.
5. With the net result that come next week, any combination of three draconian measures are likely to be announced by the Greek central bank and the Greek government:
Bank holiday(s) to stop the bank runs;
Capital controls to ensure that Greek citizens and entities don't remit further funds abroad above an acceptable narrow limit;
Recapitalisation of Greek banks by doing a Cyprus style bail-in, i.e. by raiding the deposits of account holders to shore up the capital adequacy of Greek banks.
6. Once a, b and/or c of point 5. are executed, the Greek exit is neither here nor there. It is a fait accompli because Greece will be paralysed and a quasi-Grexit will have happened automatically thanks to the Greek citizens having voted by switching their money from Greek banks to overseas banks.
7. The contagion may then spread into the European bond markets and also into the confidence associated with the single European currency and both may plunge significantly as ECB's Target2 ends up with a hole in its chest. Target2 is the real-time gross settlement (RTGS) system owned and operated by the Eurosystem. Payment transactions are settled one by one on a continuous basis in central bank money with immediate finality. There is no upper or lower limit on the value of payments. The Greek crisis will render Target2 into no man's land and therefore in uncharted waters.
8. At that point, we may be a short hop and skip away from a full blown Greek exit and that is simply because the Greek banking system will have de facto collapsed post a European Lehman-style event over which the politicians will have little or no control left.
9. As our organisation ATCA 5000 predicted many years ago, alongside other eminent think-tanks, the Greek situation within the euro could become unsustainable at some point and also the single currency itself would come under heavy pressure to splinter after departures from within its club.
10. To make matters even more complicated, there appears to be no mechanism to leave the Eurozone without exiting from the European Union.
11. The bigger issue going forward is the broad-brush destabilisation the Greek departure from Europe's single currency may inflict on the stability of the European Union, the Eurozone and the global banking and financial system. It remains to be seen how big the contagion and chaos might be, although it is certain that there will be some mission critical fallout from this unfolding Greek crisis.
[ENDS]
Yours sincerely
DK Matai
Source:
www.ATCA5000.com Interesting. Lots of "gloom and doom" in there but, lots of truth also. If the domino falls in the right direction, all the dominos fall after it. When considering the Euro financial system in terms of human behaviour, it would seem that something like this is inevitable. People have an identity and, identify and belong to groups who's attributes define that particular group in a manor that pleases them. One of these is national identity.
We say we are Americans, or Brits, or Canadians or Greeks etc, because we have constructed a group, a country, of like minded individuals with like minded goals and values. This allows us to further our cause move, as a group, to improve the human condition within our "country". And, lets face it, enrich ourselves.
There are many things that hold our "group" together. One of the biggest "glues" in this construct is money. Without it, everything falls apart. So, we identify very strongly with our money, on a personal and national level. And this is why the Euro Zone is doomed to fail eventually.
For example, the Greek people have never embraced the Euro. Even when the Drachma was almost worthless, the Drachma was THEIR currency not the Euro. Prior to the Euro, the Netherlands had the Guilder (Gulden) and a large percentage of the country wants it back.
And so it goes with many old world Euro countries, not all, but enough to keep this crisis on the front page.
So where does digital currency fit in? Simple, no banks, no barricades and the chance to identify with a currency they can call their own again as in the case of Guldencoin, a national crypto in the Netherlands. I realize not all countries have national cryptos and, many have failed but, that can change. Individual political groups will create what they think will be successful but, this is a double edge sword. As we all know, it won't be one new currency but many, many entries which will dilute the field and most likely cause none of the new coins to prosper.
So where does that leave DNotes in all this coming mess? Well, NOTE is positioned very well to be a "base", a store of value people can use to get out of the traditional banking systems and preserve their wealth during the coming financial storm. A lifeboat if you will,
where no one can "appropriate" their funds to prop up the government. While I realize other cryptos can do this as well, there are several reasons why DNotes fits the bill:
1. Stability. The lack of which they are running from in the first place.
2. Cost of entry is low. There is a perception among us humans that owning 10000 of something worth 1 dollar is better than owning 1 of something worth 10000 dollars. This applies to currency especially. If one Bitcoin doubles in value , you have $500 worth of Bitcoins at todays prices but, you still have only 2 Bitcoins worth. If 10000 DNotes doubles in value, you have $300 at todays prices but you have 20000 DNotes worth and the potential for that to far out shadow those 2 Bitcoins is almost a certainty if crypto as a group continues to thrive. Our subconscious mind is always in control.
3. Self stewardship. DNotes is it's people, it's holders, developers, investors and speculators. It is the digital currency of the people where every voice has weight and everyone has a say.
Just my thoughts on the matter...
One of the recommendations is that Canada works with other countries to formulate global guidelines for digital currency. Considering the close relationship that Canada and the U.S. have, I'm sure it's only a matter of time before the U.S. comes to the same conclusions. It is very nice to see Canada taking a leadership role in this!