Goodbye U.S. dollar, hello global currency

[Shammu]

Goodbye U.S. dollar, hello global currency
CFR chief: Monetary nationalism, sovereignty should be abandoned
Posted: May 9, 2007
1:00 a.m. Eastern

By Jerome R. Corsi
© 2007 WorldNetDaily.com

The director of international economics at the Council on Foreign Relations has launched a scathing attack on sovereignty and national currencies.

Benn Steil, writing in the current issue of CFR's influential Foreign Affairs magazine, says "the world needs to abandon unwanted currencies, replacing them with dollars, euros, and multinational currencies as yet unborn."

In the article, "The End of National Currency," Steil clearly asserts the dollar and the euro are temporary currencies, perhaps necessary today. He argues "economic development outside the process of globalization is no longer possible."

His inevitable conclusion is "countries should abandon monetary nationalism."

Steil tempers his embrace of one world currency, writing, "Governments should replace national currencies with the dollar or the euro or, in the case of Asia, collaborate to produce a new multinational currency over a comparably large and economically diversified area."

He concludes: "It is the market that made the dollar into global money – and what the market giveth, the market can taketh away. If the tailors balk and the dollar falls, the market may privatize money on its own."

The "tailors" Steil has in mind are the world's central bankers. He advises that the U.S. needs "to perpetuate the sound money policies of former Federal Reserve chairmen Paul Volker and Alan Greenspan and return to long-term fiscal discipline." In our current era of large and growing trade imbalances and over $35 trillion in GAAP (Generally Accepted Accounting Principles) accounted federal deficits, these targets appear unlikely.

Steil concludes "the foreign tailors, with their massive and growing holdings of dollar debt" no longer feel "wealthy and secure" in the economic environment of a resultant falling dollar. The inevitable conclusion is that the dollar, too, may be on the way out.

Steil's essay is antagonistic to the ideas of sovereignty and national currencies.

He writes, "The right course is not to return to a mythical past of monetary sovereignty, with governments controlling local interest and exchange rates in blissful ignorance of the rest of the world. Governments must let go of the fatal notion that nationhood requires them to make and control the money used in their territory."

Steil has ultimate confidence that economic globalism is irreversible, with national currencies doomed to the dustbin of history.

"In order to globalize safely," he advises, "countries should abandon monetary nationalism and abolish unwanted currencies, the source of much of today's instability."

Steil believes continued economic growth demands a global flow of capital unimpeded by the barriers inherent to "monetary nationalism." He asserts barriers created by monetary nationalism, such as national exchange rates or national monetary policy regimes, inevitably impede capital flow and cause currency crises as a consequence.

Steil fundamentally argues, "Monetary nationalism is simply incompatible with globalism."

Since Steil believes that only globalism offers the unrestrained flow of capital needed for worldwide economic development, he contends even re-establishing a gold standard would be counter-productive when the only real solution is to abandon the idea that nations have any reason to create currencies at all.

Throughout his analysis, Steil cautions that dependence upon the dollar or the euro as global currencies is not fundamental to his argument.

He stresses that "the dollar's privileged status as today's global money is not heaven-bestowed. The dollar is ultimately just another money supported only by faith that others will willingly accept it in the future in return for the same sort of valuable things it bought in the past."

In other words, if the institutions of the U.S. government fail to validate that faith, the dollar, too, merits being abandoned.

"Reckless U.S. fiscal policy is undermining the dollar's position even as the currency's role as a global money is expanding," he notes.

Steil imagines the ultimate solution is to privatize a global currency through a gold-based international monetary system.

"A new gold-based international monetary system surely sounds far-fetched," he concludes. "But so, in 1900 did a monetary system without gold. Modern technology makes a revival of gold money, through private gold banks, possible even without government support."

WND previously reported Steve Previs, a vice president at Jeffries International Ltd., in London, told CNBC Nov. 27, 2006, the amero "is the proposed new currency for the North American Community which is being developed right now between Canada, the U.S., and Mexico."

[Shammu]

Anyone out there care to take a guess??

[nChrist]

Hello Dreamweaver,

Brother, things like this don't surprise me at all now. This is just one of many things that fit in perfectly with the end days of this Age of Grace. It's just another sign of what was fore-ordained to come by Bible Prophecy. Many will laugh at the attempted connection to the Bible, but it really isn't a laughing matter at all. The time might be growing short for the lost to accept JESUS CHRIST as LORD and SAVIOUR!

Love In Christ,
Tom

GOOD NEWS!

1:  Romans 3:10 NASB  as it is written, "THERE IS NONE RIGHTEOUS, NOT EVEN ONE; THERE IS NONE WHO UNDERSTANDS, THERE IS NONE WHO SEEKS FOR GOD; ALL HAVE TURNED ASIDE, TOGETHER THEY HAVE BECOME USELESS; THERE IS NONE WHO DOES GOOD, THERE IS NOT EVEN ONE."

2:  Romans 3:23  NASB  for all have sinned and fall short of the glory of God,

3:  Romans 5:12  NASB  Therefore, just as through one man sin entered into the world, and death through sin, and so death spread to all men, because all sinned--

4:  Romans 6:23  NASB  For the wages of sin is death, but the free gift of God is eternal life in Christ Jesus our Lord.

5:  Romans 1:18  NASB  For the wrath of God is revealed from heaven against all ungodliness and unrighteousness of men who suppress the truth in unrighteousness,

6:  Romans 3:20  NASB  because by the works of the Law no flesh will be justified in His sight; for through the Law comes the knowledge of sin.

7:  Romans 3:27  NASB  Where then is boasting? It is excluded. By what kind of law? Of works? No, but by a law of faith.

8:  Romans 5:8-9  NASB  But God demonstrates His own love toward us, in that while we were yet sinners, Christ died for us. Much more then, having now been justified by His blood, we shall be saved from the wrath of God through Him.

9:  Romans 2:4  NASB  Or do you think lightly of the riches of His kindness and tolerance and patience, not knowing that the kindness of God leads you to repentance?

10:  Romans 3:22  NASB  even the righteousness of God through faith in Jesus Christ for all those who believe; for there is no distinction;

11:  Romans 3:28  NASB  For we maintain that a man is justified by faith apart from works of the Law.

12:  Romans 10:9  NASB  that if you confess with your mouth Jesus as Lord, and believe in your heart that God raised Him from the dead, you will be saved;

13:  Romans 4:21  NASB  and being fully assured that what God had promised, He was able also to perform.

14:  Romans 4:24 NASB  but for our sake also, to whom it will be credited, as those who believe in Him who raised Jesus our Lord from the dead,

15:  Romans 5:1  NASB  Therefore, having been justified by faith, we have peace with God through our Lord Jesus Christ,

16:  Romans 10:10  NASB  for with the heart a person believes, resulting in righteousness, and with the mouth he confesses, resulting in salvation.

17:  Romans 10:13  NASB  for "WHOEVER WILL CALL ON THE NAME OF THE LORD WILL BE SAVED."

Thanks be unto GOD for HIS unspeakable GIFT!, JESUS CHRIST, our Lord and Saviour forever!