The Threat and Danger of One World Currency
Last week China’s Premier expressed concern about the safety of his nation’s investments in the United States as well to the value of its U.S. dollar reserves.
A day later Russia's Prime Minister Vladimir Putin suggested dumping the dollar as the world’s reserve currency and urged the creation of one world currency.
This morning Reuters News Service is reporting the a U.N. panel will recommend next week that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.
Persaud has long argued that the dollar would give way to the Chinese Yuan as a global reserve currency within decades.
Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Finds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.
Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.
"It is a good moment to move to a shared reserve currency," he said.
Central banks hold their reserves in a variety of currencies and gold, but the dollar has dominated as the most convincing store of value -- though its rate has wavered in recent years as the United States ran up huge twin budget and external deficits.
Some analysts said news of the U.N. panel's recommendation extended dollar losses because it fed into concerns about the future of the greenback as the main global reserve currency, raising the chances of central bank sales of dollar holdings.
"Speculation that major central banks would begin rebalancing their FX reserves has risen since the intensification of the dollar's slide between 2002 and mid-2008," CMC Markets said in a note.
Any way you look at this the U.S. Dollar is under siege and my prediction about the danger of the death of our currency is growing. When I was a young man study economics I used to laugh and dismiss conspiracy stories about one world government, the Trilateralists which the stories used to be embellished by predictions of secret black hawk helicopters.
While the drama of those stories may have been embellished for effect I find myself re-thinking the possibility of a global conspiracy with the stories of one world currency.
We’re living in a very dangerous time that threatens not only our nation’s economic viability but also our democracy. The best defense and protection you can employ is to own physical gold and protect your IRA with physical gold ownership.