I will be gone most of the day but, a friend alerted me to this article and I wanted to share it.

http://www.reuters.com/article/Funds09/idUSTRE52H2CY20090318

quote;

U.N. panel says world should ditch dollar

snip————–
Persaud said that the United States was concerned that holding the reserve currency made it impossible to run policy, while the rest of world was also unhappy with the generally declining dollar.
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Why would the U.S. want to go along with a new global currency?

Well, it would devalue the dollar even more. If they go with a new currency and that is what commodities would be sold in probably, then demand for the dollar would drop and those with dollars would want to get rid of them causing them to drop in value. In other words, spend them.

The FED is doing everything it can to get dollars into circulation. All the money supply is not working. They need the dollars moving in the economy if they are going to get CPI rising and stop the fall in home prices (they believe).

A month ago, I wouldn’t have believed an article like this where they say the U.S. would support a new global currency. Now? I think it is possible due to the desperation the FED has to get money moving.

The risk is that so many dollars start moving globally, that they collapse the dollar. This sounds very, very high risk and thus, I have to wonder if they will actually go through with it. But, they would be repaying debt with devalued dollars.

They know that they can’t grow or tax out of the debt we have. So…..

Related Posts:

• U.S dollar, the world’s primary reserve currency is in danger!
• Can the U.S. have hyper-inflation?
• US deficit 2009 is $1.4 trillion out of $14 trillion economy, that means deficits of 10% of gdp.
• CPI goes up, half a million people in a month lose their jobs.
• Stagflation.

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