The former chief economist at the World Bank, Justin Yifu Lin, is advising the Chinese government that the time has come for a single global currency. Lin, who is also a professor at Peking University, says that the U.S. dollar “is the root cause of global financial and economic crises” and that moving to a “global super-currency” will bring much needed stability to the global financial system. And considering how recklessly the Federal Reserve has been pumping money into the global financial system and how recklessly the U.S. government has been going into debt, it is hard to argue with his logic. Why would anyone want to trust the United States to continue to run things after how badly we have abused our position? The United States has greatly benefited from having the de facto reserve currency of the planet for the past several decades, but now that era is coming to an end. In fact, the central bank of China has already announced that it will no longer be stockpiling more U.S. dollars. The rest of the world is getting tired of playing our game. Our debt is wildly out of control and we are creating money as if there was no tomorrow. As the rest of the world starts moving away from the U.S. dollar, global power is going to shift even more to the East, and that is going to have very serious consequences for ordinary Americans. (Read More...)
U.S. Dollar
Now That U.S. Government Debt Has Been Downgraded, The Rest Of The World Is Calling Even Louder For A New Global Currency
For decades, the U.S. economy was so dominant compared to the rest of the world that nobody really even challenged the status of the U.S. dollar as the reserve currency of the world. But now that U.S. government debt has been downgraded, the U.S. dollar is showing significant weakness and the U.S. economy continues to crumble, the rest of the world is questioning whether the U.S. dollar should be allowed to continue to have such a privileged position in the global marketplace. Politicians all over the world are now openly calling for a new global currency to replace the U.S. dollar in international trade. In fact, we are already seeing a shift away from the dollar in many areas of the globe. A decade ago, the U.S. dollar made up approximately 70% of all foreign exchange reserves around the world. Today, that figure is down to about 60%, and it continues to fall. As the debt problems of the U.S. government get even deeper, and as the U.S. dollar loses even more strength, the calls for a truly global currency are going to grow even louder. (Read More...)
Gold And Silver Are Thriving While The U.S. Dollar Is Dying
Have you heard the news? Gold hit another new record high on Thursday. It reached $1447.40 before settling back a bit. Most people responded to that news with a yawn. Why? Well, because it is happening so frequently these days. It seems like the price of gold is constantly setting a new record. Silver likewise is thriving. The price of an ounce of silver briefly hit $38.13 on Thursday. That was the highest price for silver in 31 years. But most people also responded to that news with a yawn. Why? Well, because the price of silver always seems to be going higher these days. Meanwhile, the U.S. dollar is struggling. The ICE Dollar Index fell to 75.340 earlier this week. That was the lowest it has been since December 2009. Even at a time when the sovereign debt crisis in Europe is flaring up again and there is tremendous instability all over the world the U.S. dollar still can’t find much traction. In fact, many are convinced that the U.S. dollar is on the verge of another major fall. So what in the world is causing all of this? (Read More...)
Will The Death Of The Dollar Lead To The Birth Of A New World Economic Order?
There is no getting around it. The U.S. dollar is dying. U.S. government debt continues to grow at a very frightening pace and the Federal Reserve is now buying up most of the new debt that is being issued. At this point there is simply not enough money in the rest of the world to continue to feed the U.S. government’s endless thirst for more debt so the Federal Reserve has had to directly intervene in order to keep the Ponzi scheme going. Other nations are rapidly losing faith in the U.S. dollar as they realize that there is simply no way that the U.S. government will be able to service this soaring debt for much longer. Even now we are watching the U.S. dollar rapidly fall against a vast array of hard assets. Virtually all major agricultural commodities have exploded in price over the past year, the price of gold is over $1400 an ounce again and last week U.S. crude oil prices topped $100 a barrel for the first time since 2008. Meanwhile, the Federal Reserve continues to print dollars as if there is no tomorrow and the U.S. government continues to spend dollars as if the party is never going to end. Yes, we are most definitely witnessing the death of the dollar. (Read More...)
The Coming Collapse Of The U.S. Dollar
As the U.S. media trumpets the arrival of a great “economic recovery”, the vast majority of the American people are completely unaware that the entire U.S. financial system is caught in a hopeless death spiral. The cold, hard reality is that any temporary “green shoots” that we are seeing in the economy are there not because our politicians have figured out a way to deal with the financial problems of the United States. No, the “green shoots” are there because our politicians have flooded our economy with a whole bunch more debt. Debt will stimulate an economy for a little while, but the truth is that any new debt just makes our long-term economic problems even worse. But now we are caught in a never ending cycle of debt, and there is no hope that we will ever be able to pay if off. Most Americans do not understand economics, but if they did, they would realize that the American Dream is literally being destroyed right in front of their eyes. Not only have we squandered the vast amounts of wealth that our forefathers left us, we have also piled up the biggest mountain of debt in the history of the world. We have created an economic nightmare from which there is no escape. Our children and our grandchildren will be trapped in it for their entire lives. What we have done to future generations of Americans is absolutely criminal. (Read More...)
The Federal Reserve And U.S. Treasury Unveil The New 100 Dollar Bill
The Federal Reserve and the U.S. Treasury have unveiled the new 100 dollar bill which will go into circulation starting on February 10th, 2011. Officials from the U.S. Department of the Treasury, the Federal Reserve System and the United States Secret Service held a press conference in Washington D.C. today to show off the new security features which they hope will reduce the threat of counterfeiting. The 100 dollar bill is the highest denomination of all Federal Reserve notes currently being produced, and circulation of the 100 dollar Federal Reserve note in the past 25 years has grown from $180 billion to approximately $650 billion, so maintaining the integrity of the note is absolutely critical. (Read More...)