U.S. Backing for World Currency Stuns Markets
Sat, 28 Mar 2009
Here’s a bone for all you new world order and illuminaughty conspiracy theorists. Of course, we all knew this was coming eventually, right? It’s beyond the realm of conspiracy theory, as economists have long posited such a global currency. But that the U.S. government is openly stating that they are “quite open” to a global, one world currency is quite revealing. It won’t be long now…
Also see: U.S. Vows To Sustain Dollar’s Dominance: Treasury Secretary Timothy F. Geithner said Wednesday that the United States would do whatever it takes to make sure the dollar would remain the world’s dominant reserve currency, clarifying comments he had made earlier in the day that had caused the greenback to fall against major currencies. (Washington Post, March 27, 2009)
Whatever it takes, eh Mr. Geithner?
[Posted By ShiftShapers]
By Ambrose Evans-Pritchard
Republished from The Telegraph/UK
Treasury Secretary Geithner shocked global markets by revealing that Washington is "quite open" to Chinese proposals for the development of a global reserve currency run by the IMF
The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens. David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geo-finance.
“The mere fact that the US Treasury Secretary is even entertaining thoughts that the dollar may cease being the anchor of the global monetary system has caused consternation,” he said.
Mr Geithner later qualified his remarks, insisting that the dollar would remain the “world’s dominant reserve currency … for a long period of time” but the seeds of doubt have been sown.
The markets appear baffled by the confused statements emanating from Washington. President Barack Obama told a new conference hours earlier that there was no threat to the reserve status of the dollar.
“I don’t believe that there is a need for a global currency. The reason the dollar is strong right now is because investors consider the United States the strongest economy in the world with the most stable political system in the world,” he said.
The Chinese proposal, outlined this week by central bank governor Zhou Xiaochuan, calls for a “super-sovereign reserve currency” under IMF management, turning the Fund into a sort of world central bank.
The idea is…