Well, this is what I have been concerned about for several months. France as the head of the Group 20 Countries, wants to ditch the U.S. Dollar as the "World’s Reserve Currency." If this happens, it will cause prices on all commodities consumed in the U.S. to float up in price. The value of the U.S. Dollar will drop in value rapidly against foreign currencies. This will have a devastating effect on the U.S. economy. Oil and Gas will be the first Commodities to increase in price. Think about what $5 plus per gallon of gas and Diesel fuel will do to prices of our commodities. Every thing we buy depends on moving the products from point A to point B, etc. Shipping costs will be astronomical. The value of Dollar-based retirement Ira's will drop as well. Might be a good time to invest our Dollars in something else. But, there doesn't seem to be a safe harbor anywhere to park our investment Dollars.
Our Government has caused this dilemma by printing too many Dollars. The U.S. has benefitted financially over the past several years as keepers of the "World's Reserve Currency." But the Government has abused the privilege by printing billions of dollars with nothing to back it up. We can't print our way out of debt without debasing the value of the Dollar. We have borrowed Trillions of Trillions from other countries as well, and our lenders are getting nervous about our ability to repay the debt. It is becoming a trust issue.
China is already on board with the Group 20 Countries in getting out of the U.S. Dollar. They would like the Yuan to be the “World Reserve Currency.” China manipulates its currency making it impossible to compete with them. They set the value of Yuan low and subsidize their labor costs for producing products that they sell mostly to the U.S. Companies in the U.S. can’t compete with their prices. The U.S. Government owes China over One-Trillion Dollars. If China alone calls in their loans, it could break the U.S Treasury, which is almost broke already. This is what you can expect when you deal with the Devil. Read the report below for details.
Here is the report from the French newswire.
France wants new global finance system
Updated: 11:37, Monday, 14 February 2011
France will help the transition to a global financial system based on 'several international currencies', the French Economy Minister said today.
1 of 1 ![]() Christine Lagarde - Wants changes on world's finance system
France, as current head of the Group of 20 countries, will help the transition to a global financial system based on 'several international currencies', French Economy Minister Christine Lagarde said today.
Lagarde, speaking ahead of a G20 finance ministers meeting in Paris on Friday and Saturday, said the world had to move on from the 'non-monetary system' it now has to one 'based on several international currencies'.
Accordingly, France wants to see less need for countries, especially the emerging economies, to accumulate huge foreign reserves, she said.
At the same time, international capital flows should be better regulated and the role of the Special Drawing Rights issued by the International Monetary Fund should be reinforced by the inclusion of China's yuan in the system.
China, whose booming economy now ranks second only to the US in size after overtaking Japan, has accumulated massive forex reserves of more than $2.5 trillion on the back of its sustained trade surpluses and foreign fund inflows.
Washington says the build-up reflects an unfair undervaluation of the yuan, a charge Beijing rejects.
France has previously said it wanted to see the global financial system reduce its reliance on the dollar for a more broad-based arrangement.
|
