Monday, September 14, 2009

Obama's charm has worn off - other G20 members call for US dollar to be rejected.

It was only a matter of time before China, especially, became too nervous about the true value of all the US dollars and T-bills they are holding to continue to support either. Now, together with Russia, the most influential members of the G20 are calling for an end to accepting US dollars as international payments. Now, a lot of people may be saying to themselves, "so what?" The idea of the US dollar being the world's reserve currency has no meaning to them, because they don't understand how this in any way affects their everyday life.

This is unfortunate, because the results will be devastating. At the point the world no longer accepts US dollars we won't be able to buy anything, because we import all our stuff from other countries. We will no longer be able to give them dollars, we will have to find something else they want, like, say, gold. But we don't have enough gold to cover even a fraction of the imports we need for everyday life, now do we? I don't. Do you?

And at the point no one is willing to take US dollars, the only assets we (collectively) have to pay our government's debts are public lands (such as national parks), and perhaps the stock in what few remaining viable manufacturing companies we have left (because they are NOT going to take stock in companies whose "products" are IMAGINARY ghosts in the economic machine).

In short, China is getting ready to own most of the US.

U.N. calls for replacement of U.S. dollar
Joins Russia, China and G20 with demands IMF step forward
Posted: September 14, 2009
1:26 pm Eastern © 2009 WorldNetDaily

World organizations, including the United Nations, are openly calling for the creation of a one-world currency to replace the dollar – and the Obama administration's trillion-dollar deficits are serving as a trigger for the currency switch, Jerome Corsi's Red Alert reports.

A United Nations report recommended that a new one-world currency should be created to replace the dollar as the standard for foreign-exchange holdings in international trade...

...The report, released by the United Nations Conference on Trade and Development, or UNCTAD, endorsed a proposal that Special Drawing Rights, or SDRs, issued by the International Monetary Fund, or IMF, "could be used to settle international payments."

Red Alert has previously reported that Russia and China championed the idea to use the IMF's Special Drawing Rights as a new international currency as a proposal that was adopted by the G-20 meeting held in London last April...

...Until the current global economic crisis, SDRs issued by the IMF have been used by IMF member nation states primarily as a reserve account to support international trade transactions, not as an alternative international currency available to settle international debt transactions in danger of default...

In other words, this is the world's somewhat polite way of saying that they don't think our IOUs are worth the paper they're printed on. They know there is no way on God's green earth the US can pay back everything it has borrowed from other countries. This way, they can put us into an official "default" status without actually coming out and SAYING it.

But the point is already made - the US is a deadbeat nation, and the repo man is on his way. Either we will give up assets voluntarily, or...

You probably don't want to know.

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