Thursday, March 19, 2009

Keep Your Friends Close

And keep your enemies closer.

That has been the wisdom passed down through the ages. But is that what America has been engaged in with the UN and the IMF and a myriad of other nasty little beasties for decades now?

Apparently so.

Apparently, there is a lot of inter-connective relationships that exist between America and all of these entities. and as long as we could keep them balanced and controlled to our best interest, the fact that we spent phenomenal amounts of money in the effort was secondary.

Well the problem now is, we don't have those phenomenal amounts of money to spend on these relationships any longer. and one of the main reasons that we don't, is that we have allowed our system to be systematically dismantled and the wealth passed along and redistributed to those who were once dependent upon us.

And now that they have seen that the great beast America is and can be weakened, they are coming after us in monetary ways that they know will result in our ultimate and timely demise.

Not the least of which is to further destabilize the dollar and the calls for an alternative currency that they (Europe and Asia) can agree upon while they feast over the bleached bones of what was once the greatest economic empire and monetary engine to have ever existed.

The writing is on the wall folks, as evidenced by news articles like this one.

By Jeremy Gaunt, European Investment Correspondent

LUXEMBOURG (Reuters) - A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.

Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.

Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.

"It is a good moment to move to a shared reserve currency," he said.

Central banks hold their reserves in a variety of currencies and gold, but the dollar has dominated as the most convincing store of value -- though its rate has wavered in recent years as the United States ran up huge twin budget and external deficits.

Some analysts said news of the U.N. panel's recommendation extended dollar losses because it fed into concerns about the future of the greenback as the main global reserve currency, raising the chances of central bank sales of dollar holdings.

"Speculation that major central banks would begin rebalancing their FX reserves has risen since the intensification of the dollar's slide between 2002 and mid-2008," CMC Markets said in a note.

Russia is also planning to propose the creation of a new reserve currency, to be issued by international financial institutions, at the April G20 meeting, according to the text of its proposals published on Monday.

It has significantly reduced the dollar's share in its own reserves in recent years.

The jackals are afoot and circling the wounded beast now. And regardless of whether America survives the interim economic crisis and recession, the days of America as the global leader and big stick of economic policy world wide are over. That reign ended when we handed over our wealth by the boat loads in exchange for oil and then slit our own wrists on the alter of socialism masquerading behind supposed environmentalism, while capitalism and freedom were systematically destroyed.

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