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Friday, March 18, 2011

U.S. Backing for World Currency?

From The Telegraph

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.

Phew! Thank goodness for that. Geithner had me worried for a minute.

4 Comments:

Blogger Retired_CSI said...

Here it comes folks......the start of a "one-world government" mentality being condoned by the U.S. Get the money in place first and then Obama and his cronies (world-wide) bring on their left-wing, Socialist agenda with the backing of George Soros. Utopia is right around the corner for all mankind! But first, America must be put in her place as nothing exceptional in the eyes of the world. Elections have far-reaching consequences. Thank you, Obama voters. Now, get your heads out of your asses and don't make the same mistake again in 2012! We have lost our way, not to mention our souls, period! Our Founding Father's would be so proud!

3:50 PM  
Blogger alax said...

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5:43 PM  
Blogger FightinBluHen51 said...

This story is from almost 2 years ago (25 March 2009).

True, while there has been a lot of talk and rhetoric regarding currency and the reserve status, and SDR (special drawing rights), it hasn't gone much of anywhere, yet.

Ultimately, I think we will see a resurgence of physical monetary backing as it prevents Central Banking Cartels from too much monetary manipulation.

4:57 AM  
Anonymous Anonymous said...

Story dated: March 11, 2011

9:29 AM  

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