The Dollar Has Failed
Dec 17th, 2009 by David Anderson
So declared the Oil states in the Arabian Gulf as they announced a new regional currency. It will be tied to a global market basket of currencies. The administration is too busy trying to take over the private sector to do its job. All hail the ruling regime.
Saudi Arabia, Kuwait, Bahrain, and Qatar are to launch the first phase next year, creating a Gulf Monetary Council that will evolve quickly into a full-fledged central bank.
the new currency is call “the sucker”, which is what anyone holding it is.
The Gulf currency is actually likely to work because you’re combining very similar currencies together much like they did with the Euro. It’s also likely to lead the Gulf states to build a similar governmental coalition again similar to the European nations. I’d also watch China in the Asian market as it urges Japan and other Asian countries to form an Asian coalition. If it can get Russia and Indonesia to agree to join forces on a similar move we could see pressure from Canada and Mexico to merge our currencies.
I’ve actually been watching the potential for regional currencies for some time and I can see how it would seem attractive to countries that do not value freedom and independence in the way that we do.
It’s funny, ‘regional currencies.’ For centuries, we had a world ‘currency’- gold and silver. Paper, backed by nothing but promises, is potentially worth what it is- paper. And remember, inflation is a tax, which is why government wants complete control of the money supply (which they can’t do with gold and silver). Money supply divided by goods and services equals price; this is an inviolable economic tenet.
Back when silver dollars were ubiquitous, say 1965, you could have bought a new Corvette with $4,000. If, instead, you put those $4000 in silverdollars into a shoebox, and taken them out today, you can still buy a brand-new Corvette with them. Precious metals are stable, unbacked currency is weak and easily manipulated.
Trusting American politicians is risky business; trusting a ‘world,’ or U.N. currency woud be insanity.