Title: Exter's Prophecy: A former central banker shows how the financial crisis will end

1. Exter's Prophecy: A former
central banker shows how the
financial crisis will end
The Gold Symposium 2012
Luna Park, Sydney
By Dan Denning

6. The Original Oracle of Omaha
“For if human liberty is to survive in
America, we must win the battle to
restore honest money. There is no more
important challenge facing us than this
issue – the restoration of your freedom to
secure gold in exchange for the fruits of
your labours.”

7. The Roles and Requirements of
a Reserve Currency
• Medium of exchange
• Store of value
• Unit of account
• Deep and liquid debt markets
• Backed by a strong economy
• Sustainable (moral) fiscal policy
• Stable monetary policy and sound money

8. The Four Competitors

9. Chinese Steps Toward
Internationalising the Remnimbi
• Dim Sum Bonds
• Currency swaps
• Iron ore contracts between FMG and steel
producers denominated in RMB
• Off shore trading centres
• Bi-lateral trade conducted in RMB

10. Paths to a new world reserve currency
• Orderly
• Disorderly
• Non-existent
• More of the
same

14. Turning Debt into Equity
• The Bank of England
• The Resolution Trust Corporation
• Debt must be extinguished: creditors
prefer deflation, debtors and voters
prefer inflation
• Look for Fed adaptation, not dollar
capitulation

15. Extinguishing Debt Through Gold
• Gold as the ultimate
Tier-1 capital in the
banking system
• Revaluation of
central bank gold
reserves
• Gold-backed
government bonds

16. The DNA of a liberal order
• Sound money
• Free markets (value discovered in
exchange)
• The rule of law (right over might)
• Private property
• Low taxes

17. 106 &207: Surveillance State 101

19. “If you wish to destroy a nation,
you must first corrupt its
currency. Thus must sound
money be the first bastion of a
society’s defence.”
Adam Ferguson, When Money Dies: The
Nightmare of the Weimar hyper-inflation

21. Thank you!
dan@portphillippublishing.com.au
www.dailyreckoning.com.au