Thursday, March 26, 2009

Global Capos

US backing for world currency stuns markets.

US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is "quite open" to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.

The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens. David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geo-finance.

"The mere fact that the US Treasury Secretary is even entertaining thoughts that the dollar may cease being the anchor of the global monetary system has caused consternation," he said.

Mr Geithner later qualified his remarks, insisting that the dollar would remain the "world's dominant reserve currency ... for a long period of time" but the seeds of doubt have been sown.

The markets appear baffled by the confused statements emanating from Washington. President Barack Obama told a new conference hours earlier that there was no threat to the reserve status of the dollar.

"I don't believe that there is a need for a global currency. The reason the dollar is strong right now is because investors consider the United States the strongest economy in the world with the most stable political system in the world," he said.

The Chinese proposal, outlined this week by central bank governor Zhou Xiaochuan, calls for a "super-sovereign reserve currency" under IMF management, turning the Fund into a sort of world central bank.

----- Get it Bubba? Washington is "quite open" to Chinese proposals for the gradual development of a global reserve currency run by the IMF. Timmy's "quite open" to the idea, but Barry says "don't believe there is a need for a global currency." Liar. And you thought Obama was your new best friend.

The IMF is quite famous for its practice of Lending to Support Dictators - Pinochet, Duvalier, Suharto, Stroessner, Marcos, Barre, Mobutu, S. Africa apartheid, etc etc.

The IMF has done great work around the world, affectionately known as the international "lender of last resort" - sort of like Vinnie "Two Guns" down at the Social Club. Yea yea let's put IMF in charge.


Anonymous said...

America will need a new currency before Geithner and the politicians are finished expanding the debt and destroying the dollar but the solution is a gold backed currency free of government manipulation. The Campaign to Cancel the Washington National Debt by 12/21/2012 through constitutional amendment begins. See our facebook page at

We are also planning to have a booth at FreedomFest 2009, the world’s largest gathering of free minds! July 9–11 in Las Vegas. Ron

Kate-A said...

A gold back currency cannot work unless all nations back their currency with gold, which isn't going to happen. Nixon nixed the gold backed dollar b/c other countries were cashing in their dollars for gold, which they would do again.

"Free of manipulation" is not going to happen either as the IMF or any other entity would manipulate a global currency. As long as there are investors there will be manipulation.

Europe, China, Russia, US, etc. have not managed their own economies well - why would anyone think they will manage a global currency any better.

If you think the US has abused "freedom" - just wait until you are living under a new global constitution.

Good luck with your Fest.

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