Another Sign on the Road to a Devalued Dollar
The President gave a speech on immigration reform yesterday. One of the most outrageous things the President said, “The southern border is more secure today than at any time in the past 20 years.” Please, Mr. President, Phoenix is the kidnapping capitol of America, second only in the world to Mexico City. Meanwhile, as the President tried to score political points, questions about the viability of the U.S. dollar as the world reserve currency are increasing on the world stage.
The headline on a CNN.com story read yesterday, “Dollar should be replaced as international standard, U.N. report says.” This is not some idle talk from some rogue governments that hate the United States. Even our worst enemies have long held dollars in reserve. Yeah sure, there are plenty of countries that want to see the U.S. fall, but this is mainly about the dollar. Without a doubt it is losing trust in the world. Many countries (for a couple of years now) have been calling for changes in the way the world does business in light of massive U.S. debt and economic weakness. China and Russia are just a few who want to move away from the buck. The CNN story said, “The dollar is an unreliable international currency and should be replaced by a more stable system, the United Nations Department of Economic and Social Affairs said in a report released Tuesday. The use of the dollar for international trade came under increasing scrutiny when the U.S. economy fell into recession. ‘The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency,’ the report said.” (Click here for the entire CNN story.)
The U.N. report is not advocating doing away with the dollar altogether, but sharing the dollar’s reserve currency status with other curencies. The new currency woud actually be a group of currencies that give countries something called “special drawing rights,” or SDR’s. The CNN story went on to explain, “The special drawing rights would be backed by a basket of currencies, which would make them less susceptible to volatility in any one currency. And because the value of a special drawing right is defined by the IMF, changes in the value of any one currency could be adjusted for.”
Let’s read the last few words of this sentence again, shall we? It said, “. . . changes in the value of any one currency could be adjusted for.” This should put fear into any person using or saving U.S. dollars. In this scenario, the value of the dollar would undoubtedly be “adjusted” downward in value. That means everything we import would rise in price–and that is just about everything!
Jim Willie, founder of Golden Jackass.com, thinks the SDR by the IMF will fail. Don’t think that will lead to a reprieve from the devaluation executioner. In a report last week, Willie said, “The Intl Monetary Fund currency, the Special Drawing Rights is the perverted goal for broader global usage as replacement to the U.S. Dollar, in a stay of execution, a delayed trip to the cemetery. My view is that the G-20 has no interest whatsoever in any broader SDR usage, which they see as the same toxic bundled fiat papyrus that cannot float well in the oceans, showing different ink on its flag. The paper currencies are doomed to die together, alone or in a bundle. They are all denominated debt masquerading as money.” (Click here for the complete report from Mr. Willie.)
The distressed dollar is what, I think, the President should be concentrating on, not cultivation a disenfranchised Hispanic vote for the midterm elections coming in November. The U.N. report is not just a sign on the road to devaluation, but a giant flashing billboard signaling the U.S. currency is headed for some very deep trouble.
President Obama and his team are completely adrift. The IMF is also something of an international extortion organization which has yet to do much good to compensate for the harm. Unfortunately for the US we are catching up with international incompetence masquerading as successful socialism.
Obama’s only goal is to subjugate the citizens of this country, real monetary or any other kind of positive policy is not on his agenda. Payback is all he and his SDS accomplices want.
I know I am flogging a dead horse here; however, this is an eigth-grade level math problem. At some point, if our economy starts a REAL recovery, inflation will hit like a sledge hammer blow.
I went food shopping the other day. I was in the condiment isle. I picked up a jar of pickle relish, a bottle of Tabasco sauce, and a bottle of A1 Steak sauce. $18.60 was the price tag for the three items. I was at Safeway–these were not jumbo-sized jars.
We are suffering with inflation right now. Food is necessary. People will absorb higher prices for food; therefore, prices are going up. Deflation in other sectors is giving us a false sense that inflation is low.
I believe you have reported that inflation is around 10%. I believe it.
Your pole in the right column is a little ascew. I believe the economy has remained flat and still slipping, except for Obama’s spreading of his slush funds (Stimulus and TARP). Gubmint slush funding will give a false positive to economic numbers–and then the hangover begins. We are in a slush-fund hangover right now.
Back to your pole, where is the question: The economy has slipped further into recession.
This is not some idle talk from some rouge governments that hate the United States.
Disagree with this Greg.
And could some one explaint why we pay billions to the UN for them to spit on us. They are the most corrupt organization in history and give them billion to steal, anyone one remeber “Oil for Food” or as the UN implemented “Oil for Theft”
This is another UN attempt tp grap power to the the WORLD government
“changes in the value of any one currency could be adjusted for.” means that when a currency was revalued, THEN the the SDR would be adjusted. It doesn’t say the currency would be revalued by IMF.
However, while your English/logic wasn’t correct on this point, I do agree with your point that the IMF want’s to make SDR the world currency. This puts the BIS/IMF/etc. in charge of the world’s central banks/treasury departments and this is a very bad thing indeed. Loss of sovereignty… not just currency devaluation.
Emergency S.O.S.: America Falling to Foreign Bank Takeover – Fourth of July
VIDEO LINK: http://www.infowars.com/emergency-s-o-s-america-falling-to-foreign-bank-takeover-fourth-of-july/
Power Elite Versus State Capitalism – A New Meme!
ARTICLE LINK: http://www.thedailybell.com/1182/Power-Elite-Versus-State-Capitalism.html
You really make it seem so easy with your presentation but I find this matter to be really something which I think I would never understand. It seems too complicated and extremely broad for me. I’m looking forward for your next post, I will try to get the hang of it!
Obama is clueless!
Anyway, the dollar is toast. Forget SDR’s………Gold and Silver is where it’s at.