Home > Economy, Politics, Trends > U.S. Monetary Authority Challenged! IMF Wants to Replace Dollar As World Currency

U.S. Monetary Authority Challenged! IMF Wants to Replace Dollar As World Currency

February 14, 2011

And Jesus went into the temple of God, and cast out all them that sold and bought in the temple, and overthrew the tables of the moneychangers, and the seats of them that sold doves.

The IMF Wants to Replace Dollar As World Currency.
When did the IMF take on such power? And since when did the U.S. abdicate its monetary authority to outside forces? Are we headed for a return to the Gold Standard as Republicans and Tea Partyists wish? The IMF wants to move away from U.S Treasury bonds further stripping our monetary power, and thereby undermining our influence. Of all the challenges facing our country, this one may be the most serious.

CNN Money Reports: The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency. The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.

The goal is to have a reserve asset for central banks that better reflects the global economy since the dollar is vulnerable to swings in the domestic economy and changes in U.S. policy.

In addition to serving as a reserve currency, the IMF also proposed creating SDR-denominated bonds, which could reduce central banks’ dependence on U.S. Treasuries. The Fund also suggested that certain assets, such as oil and gold, which are traded in U.S. dollars, could be priced using SDRs.

Oil prices usually go up when the dollar depreciates. Supporters say using SDRs to price oil on the global market could help prevent spikes in energy prices that often occur when the dollar weakens significantly.

Gold or silver standards leave a nation completely powerless to control its own monetary policy, often tying inflation rates to completely arbitrary factors such as the rate that gold is mined in South Africa, rather than to the interests of a national economy. Worse, it leaves a nation without one of its most important tools to push back against economic downturns. In the 1930s, the United States was one of the last major nations to abandon the gold standard, and this failure to act was one of the principle causes of the Great Depression. Source: Think Progress

From the IMF website:
In the wake of the [2008] crisis, policymakers around the world are looking for ways to fix the international financial system: how to better regulate banks and other financial institutions, how to more effectively address risk, and how to strengthen economic cooperation.

There are many players involved in this effort: national governments, international financial organizations, and groups of countries, such as the Group of 20 leading economies and the European Union.

IMF Gold Holdings
The Fund’s gold holdings amounted to about 93.8 million troy ounces (2,917.1 metric tons) at end July 2010, making the Fund the third largest official holder of gold in the world. However, the IMF’s Articles of Agreement strictly limit its use. If approved by an 85 percent majority of voting power of member countries, the IMF may sell gold or may accept gold as payment by member countries but it is prohibited from buying gold or engaging in other gold transactions.

The IMF’s membership has recently approved the sale of a limited portion (12.97 million troy ounces or 403 metric tons) of the Fund’s gold. The receipts from gold sales will help finance an endowment as part of the Fund’s new income model to put the Fund’s finances on a sound long-term footing. Resources linked to the profits from gold sales will also help meet the subsidy needs associated with the IMF’s concessional lending to low-income countries. As of end-July 2010, the IMF had sold 300 tons of gold, comprising 212 tons sold to three official holders, and a further 88 tons through on-market sales that commenced in February 2010.

Assault on U.S. Monetary Authority
I think we are seeing an ongoing assault on the United States sovereignty vis a vis, undermining of its monetary authority. No coincidence that Ron Paul & Tea Partyists are calling for a return to the gold standard AND stripping the Federal Reserve of its power to regulate America’s monetary policy. Global Capitalism is threatening the very fabric of our country in terms of jobs and now a direct attack on our monetary system.

Republicans are leading the battle: January 16, 2011
Georgia State Representative Bobby Ryan was the latest to propose this, with his Constitutional Tender Act, which states, “Pre-1965 silver coins, silver eagles, and gold eagles shall be the exclusive medium which the state shall use to make any payments whatsoever to any person or entity, whether private or governmental.

Debit and Credit Cards
But there is more to it than a simple change to what type of money we carry around. This is about further entrenching wealthy interests who want to run our economy and determine its monetary policy. The target is the Federal Reserve because it overseas monetary policy which affects credit of all types. As an example, on February 1, 2011 Reuters reported: Visa International and MasterCard International “are making a last-ditch effort to blunt proposed cuts to debit card processing fees, after the Federal Reserve took a machete to the multi-billion-dollar industry late last year.”

VISA, with an alliance of 21,000 banks and Mastercard, with an alliance of around 27,000 banks, both want to run their credit operations as they see fit – with little regulation. The Fed proposed capping those fees at 12 cents per debit transaction — a 75 percent cut from the 2009 average of 44 cents per transaction. Regardless of new regulations as we can see credit card rates are up again and they are finding creative ways around the new financial reform laws.

Related:
What’s Behind the Right Wing’s Bizarre Obsession with the Gold Standard?

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  1. Conspiracy2Riot
    February 24, 2011 at 4:05 am

    We need to move AWAY from globalization and focus on localized economies. Our economies wouldn’t be in this mess if we weren’t so intertwined.

  2. February 24, 2011 at 6:13 am

    The logical step from empire building is expanded trade and commerce and from this was born ‘growth economics’ which propelled globalization. The speed with which globalization has occurred has overwhelmed many societies and indigenous peoples. There is no democratic ideal or force at work to act as a bulwark against the trend. The only real choice is to personally steer away from globalization and embrace localization. I have suggested that people divest their money from the large banks and go with community banks or credit unions. Invest locally; go with local farmers; join co-ops; support local businesses. With corporations like Monsanto patenting grow seeds, we have a serious threat to local farming and even backyard farming. These folks want everybody to be beholding to them.

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