THE DAY THE DOLLAR DIED

THE DAY THE DOLLAR DIED By Paul McGuire

In An Article Entitled “I.M.F. Chief Suggests Look at New Reserve Currency” by Sewell Chan in the New York Times, the author contends that the chief of the International Monetary Fund said Friday that the organization should reorient itself to better detect systematic risks in the global economy.

By SEWELL CHAN

Published: February 26, 2010

WASHINGTON — The chief of the International Monetary Fund said Friday that the organization should reorient itself to better detect systemic risks to the global economy and quickly step in with emergency loans when financial crises emerge.
The I.M.F. chief talked about better tools for financial surveillance and creating a new global reserve currency that would replace the dollar.

The I.M.F. leader, Dominique Strauss-Kahn, also floated the idea of creating a global reserve currency that could serve as an alternative to the dollar. When asked about Greece the European Union appeared able to resolve the crisis on its own through political force and controlling the Greek economy from the outside, forcing it to obey the New European Union Constitution.

Mr. Strauss-Kahn called for a “renewed vision” for the I.M.F., which was the first step in creating the global financial architecture created in Bretton Woods, N.H., in 1944, but which faced grave questions about its relevance and survival by the time Mr. Strauss-Kahn took over in 2007.

He called for the fund to improve its tools for financial surveillance and to “construct a global risk map” of nascent systemic risks. Mr. Strauss-Kahn also said it would be “intellectually healthy to explore” the creation of a new global reserve currency. If a new global currency is put in place it would basically destroy America’s fragile economy and force us into global government which is the plan.

The governor of China’s central bank made a similar proposal in March 2009, arguing that “special drawing rights” — baskets of currencies issued by the I.M.F. and made up of the euro, yen, pound and dollar that have served as reserve assets — would be more stable and viable than the dollar. China’s huge holdings of dollar reserves in the form of Treasury securities have become a concern for officials on both sides of the Pacific.

Mr. Strauss-Kahn said that a new reserve currency could limit dependence on the policies and conditions of a single, though dominant. The Treasury Department pointed to its most recent semiannual foreign exchange report, released in October. That report said that “as long as the United States maintains sound macroeconomic policies and deep, liquid, and open financial markets, the dollar will continue to be the major reserve currency.”But, America does not have “sound economic policies!” We are trillions of dollars in debt and are quickly becoming a Third World Economy rules by a socialist state.