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Keith Farmer
03-24-2009, 08:32 AM
"China calls for new global currency, adds pressure for overhaul of financial order"

By JOE McDONALD | AP Business Writer 7:37 AM EDT, March 24, 2009 http://www.courant.com/business/nationworld/wire/sns-ap-as-china-global-currency,0,3112807.story

Of particular interest in this piece is this quote:


"A super-sovereign reserve currency managed by a global institution could be used to both create and control global liquidity," Zhou wrote. "This will significantly reduce the risks of a future crisis and enhance crisis management capability."


Here are a couple of quotes about the topic that may be of interest (from this site: http://www.forcingchange.org/one_world_one_money_without_endnotes





“A global economy requires a global currency.”
— Paul Volcker, former Chair of the US Federal Reserve.



“The control of money and credit strikes at the very heart of national sovereignty.”
— A.W. Clausen, President of Bank of America, in a response to the suggestion of a global central bank. [Clausen later became the President of the World Bank].




“Once a nation parts with control of its currency and credit, it matters not who makes that nation’s laws.”
— W.L. Mackenzie King, [former Prime Minister of Canada].





"In a May, 2007 lecture, Mundell related, “International monetary reform usual becomes possible only in response to a felt need and the threat of a global crisis.”


This Nobel Prize winner also pointed his finger to the possible trigger event, saying that the “global crisis would have to involve the dollar,” and that a world currency should be viewed as “a contingency” to a global dollar disaster."

With a similar crisis in mind, Benn Steil offers what appears to be an altruistic solution. In order to avert the crisis, all that nations need to do is relinquish sovereignty before the problem become insurmountable...

“Governments must let go of the fatal notion that nationhood requires them to make and control the money used in their territory. National currencies and global markets simply do not mix; together they make a deadly brew of currency crisis and geopolitical tension and create ready pretexts for damaging protectionism.”

Bob Gutermuth
03-24-2009, 08:46 AM
The relinquishment of US sovereignty over its own people, territory, currency and laws is something that must never happen. We have survived 200+ yrs as an independent nation and no global crisis is sufficient to surrender our independence to any other nation or organization, despite how convincing the arguments of our enemies, or our would be friends. The US must remain a beacon of freedom to the world, not just another satellite nation of a world government.

Keith Farmer
03-24-2009, 08:50 AM
The relinquishment of US sovereignty over its own people, territory, currency and laws is something that must never happen.


Agreed...

Now, how do WE stop the train that is speeding in that direction?!

By the way...is the "global crisis" real...or is it a ploy? I quote again:

"In a May, 2007 lecture, Mundell related, “International monetary reform usual becomes possible only in response to a felt need and the threat of a global crisis.”

YardleyLabs
03-24-2009, 08:54 AM
The relinquishment of US sovereignty over its own people, territory, currency and laws is something that must never happen. We have survived 200+ yrs as an independent nation and no global crisis is sufficient to surrender our independence to any other nation or organization, despite how convincing the arguments of our enemies, or our would be friends. The US must remain a beacon of freedom to the world, not just another satellite nation of a world government.
I agree. However, I believe that the rest of the world would be crazy to allow the world economy to continue to be pegged to the dollar. For the last 20 years we have proven repeatedly that we lack the discipline and the wisdom to manage a global currency since ultimately we are focused on managing our own currency for our own purposes. Those purposes have included recurring deficits and massive devaluation.

Bob Gutermuth
03-24-2009, 02:06 PM
IF the dollar were still pegged to the gold standard perhaps we would not have such trouble with currency fluctuations.

YardleyLabs
03-24-2009, 03:37 PM
IF the dollar were still pegged to the gold standard perhaps we would not have such trouble with currency fluctuations.
And if we had stayed in the bronze age there would never have been a cold war.:D

I lived in Switzerland for seven years and my family continued to live there for several more. Throughout that period from 1960-1971, the Swiss franc was worth $0.23 +/- $0.01. In 1900, it had been worth $0.20.

Today, the Swiss franc is worth about $0.89, reflecting a devaluation of the dollar to a little over one-fourth of its value at that time. The biggest losses were in the 1970's with the Ford/Carter economic disasters. Things got a little better under Reagan and then began to collapse again under Bush Sr. Clinton oversaw about a 20% devaluation of our currency but then the dollar began to strengthen and ended stronger than it had been at the beginning of his presidency. Under GWB, however, the administration decided that there was too much emphasis on a strong dollar and began using devaluation more consciously as a way to reduce imports and reduce the cost of paying for deficit driven debt. Accordingly, the dollar was allowed to drop almost 40% during the GWB presidency. That's a pretty steep "tax" that we all pay.

To give that a context, in the 1990's, the average salary for a programmer in Switzerland was more than three times what the same programmer was paid in the U.S. and the process of importing programmers from Europe, which had been common for twenty years, ended abruptly in the mid 1990's because we could no longer compete for European talent.

Goose
03-24-2009, 04:01 PM
We don't need to stop the speeding train...just put Obama on the track in front of it!!!

Keith Farmer
03-24-2009, 07:00 PM
By JEANNINE AVERSA, AP Economics Writer Jeannine Aversa, Ap Economics Writer – 12 mins ago


Geithner made it clear he believes the treasury secretary should be granted broad powers — after consultation with Federal Reserve officials — to take control of a major financial institution and run it. The treasury chief is an official of the administration, unlike the FDIC, which is an independent regulatory agency.

Geithner wants to take control of a MAJOR FINANCIAL INSTITUTION after okaying it with the FEDs...acting on behalf of the "Administration"...????!!!

badbullgator
03-24-2009, 09:47 PM
Don't worry Keith Dear Leader will take care of all

Bob Gutermuth
03-24-2009, 09:53 PM
Perhaps he should be called 'Fearless Leader' like the dictator of Pottsylvania and Boris Badenoff's boss in the old Rocky and Bullwinkle cartoons. BHO is at least that incompetent, and about as personable.