Tuesday, March 24, 2009

China calls for a new international currency?

You didn't know I was a political animal, did you? I'm not. Not at all.

But you thought this was a safe blog to check from time to time. Well, every once in awhile my mind goes over-active and I start putting two and two together and don't really like what I end up with.

Well, an article I read today says that the chief of the Chinese Central Bank has publicly called for the world to adopt a new "reserve currency" and to "dump" the US dollar as the present reserve currency of the world. China has now joined Russia in making such calls publicly.

If you know your history enough to know about the establishment of the Federal Reserve in 1913 and how the Bretton Woods agreement was formed in 1945 well then you'll know that if and when the world dumps the dollar, no one will be able to use that currency to buy much — if anything — from the rest of the world because the world is increasing now viewing the dollar as worthless.

If more countries adopt the view of China and Russia, the whole US economy will cease to exist and the US Government will collapse within months. Of course, I've been wrong before but this is what I'm reading and this is what I'm seeing. (Never mind the time element, go for content.)

There you are, for what it's worth. (Maybe that's what they're trying to get you prepared for, Wendy, in that government-sponsored web site about stocking up food and "being ready". What was funny was they never said just what you were supposed to be preparing for!)

Still, like good boy scouts, be prepared anyway, kids.

Read about it in the Financial Times by clicking here.

The site Wendy called my attention to is here. Take a look!



2 comments:

  1. Well I will confess I am not well-versed in economics and certainly didn't know about the Bretton Woods agreement. I am shamefully ignorant in world affairs too many times - there, I've said it. But I'm sure that's no surprise to anyone that knows me. Keep me posted...ha ha.

    I thought the same thing about the Canadian government website - it was all about preparing...but, for what?

    Like you say, we should all become good boy scouts. I think we are in a much better position to "be prepared" in our present home than we were in Edmonton...

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  2. I looked at that Canadian government site again Wendy and it's spooky. I just edited my original post to put the link in to it, in case anyone else wants to see it.

    I'm sure if you type Bretton Woods into Wikipedia you'll learn everything about it. I'm no economist, but I'm interested.

    You're right; you're better off where you are now, I'd say!

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