I am seeing an increasing amount of articles and ideas related to an alternate financial system. The continued traditional media narrative implies that the current system is unstable and corrupted with insider deals, Ponzi schemes, bribes, and high profile acquittals of financial crime. The underlying age-old assumption is that the wealthy (merchant class) will win and the rest of us (the working class) will lose.
Keep in mind that the Mexican peso crisis was not caused by a foreigners, it was the internal wealth leaving their own currency for safe haven elsewhere that sparked the run on the Mexican Central Bank. The absence of a currency other than the dollar and the integration of the dollar among all other currencies is the only thing keeping that from happening in the US. But this may change.
1. Either a new global currency (like a garden salad of currencies and/or commodities) will arise as a ‘less-risky’ diversified alternative,
2. A virtual currency will arise from any number of new developments in social media.
Of course the first option seems far more realistic. But keep in mind that the nature of “Disruptive Innovation” is where the dominant player does not even see the disruptor until it is too late. The thing that social media has not yet figured out is how to capitalize and securitize an alternate currency. But we are getting close. After that, the rest is easy because money is simply a social agreement. What would you rather hold, debt backed currency or innovation backed currency?
Nobody can really say that the entire 65 trillion dollar world economy is not vulnerable to a disruptive currency. Please review The Next Economic Paradigm for a complete specification of Innovation Economics. Thanks!