The head of the IMF has suggested the organization might provide an alternate reserve currency:
Dominique Strauss-Kahn, the head of the International Monetary Fund, suggested Friday the organization might one day be called on to provide countries with a global reserve currency that would serve as an alternative to the U.S. dollar.
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He said having other alternatives to the dollar “would limit the extent to which the international monetary system as a whole depends on the policies and conditions of a single, albeit dominant, country.”
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Several countries, including China and Russia, have called for an alternative to the dollar as a reserve currency and have suggested using the IMF’s internal accounting unit. (my emphasis)
Strauss-Kahn went on to note the IMF could manage the complex big picture of global capital flows, while national regulators could handle their own affairs.
Now, I hate to sound like a New World Order conspiracy theorist (BTW, if you Google that, please stay away from the Wikipedia article – it’s extremely biased and poorly done), but the IMF suggesting it develop an alternative reserve currently and manage the larger part of “global capital flows,” which is sure to include a tax to pay for that overseeing, it does sound rather alarming.
To clarify, those who worry about the “New World Order,” are concerned about, “the emergence of a bureaucratic collectivist one-world government.” It’s easy to see how the topic of a global currency could raise concerns there as a first step towards that outcome.
In all fairness, I can see why some other nations would want an alternative currency – the U.S. congress continues to spend our future away. This is really an odd spot in history, where the U.S. is spending itself into oblivion, yet much of the world is still attached to us like the parasitic remora they are. I would suggest they invest in precious metals, however.
It should be noted that this is not a new idea and that some see real economic advantages in a global currency. But as we recently saw with Greece’s’ financial problems, which caused problems for the Euro, the collectivist approach has problems. Those problems aside, the issues of monetary control and taxation are also real concerns.
I’m not saying this will go one way or the other. Under current conditions, the American public is highly likely to completely reject any bid for a global currency. But if we begin to slip into Great Depression II (if we haven’t started that slide already), it could make both congress and the public more amenable to such changes – with the hope and promise of fixing everything.
Currently the Federal government spends far beyond its means, and so do the majority of Americans. A great correction is coming – barring a miracle, or a series of them – and the only thing the remains to be seen is what generation this correction will fall on.
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