October 7, 6:53 PM
Pittsburgh Conservative ExaminerJosh Geldrich
On Tuesday the United Nations called to reduce global dependence on the US dollar. In a statement further reinforcing their previous declaration, the UN called for a new global reserve system that does not rely on any single nation’s currency, but would instead be based on a new global reserve currency; Special Drawing Rights (SDRs).
An SDR is a basket of currencies made up of 0.6320 US Dollars (%43), 0.4100 euro (%34), 18.4 Japanese yen (%11) and 0.0903 pound sterling (%11). The Euro is currently made up of currencies from Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.
UN undersecretary general for economic and social affairs, Sha Zukang, said that, "Important progress in managing imbalances can be made by reducing the reserve currency country’s 'privilege' to run external deficits in order to provide international liquidity."
But the UN’s call to change from the Dollar standard used worldwide does not come alone. The UK news outlet the Independent reports that “Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.”
The Independent further states that, “Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars… The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.”
While Yahoo News reports that, “Big oil producing nations denied on Tuesday a newspaper report that Gulf Arab states were in secret talks with Russia, China, Japan and France to replace the U.S. dollar with a basket of currencies in trading oil,” can we be certain that they were not discussing the move?
What Yahoo fails to recognize is that if these countries admitted to discussing such a move away from the dollar, our country’s currency would rapidly and fatally nose-dive, throwing the financial systems across the globe into turmoil and plunging us into societal anarchy. It’s common knowledge that the Arab states, China, Russia, Japan and France own close to $3 trillion in currency and treasuries.
Not less than ten years ago, stories like the one in the Independent would never have been taken seriously. Today however, we fight war-deficits, huge expenditures from the last administration and a current administration which examples only fiscal irresponsibility and forces legislation which hinders and in some instances halts economic activity.
Since the most appropriate way for talks of this nature to occur would be in secret, the only thing left is the list of countries that have the most invested in the dollar. In March of this year China called for a new dominant world reserve currency instead of the dollar, in a system within the framework of the Washington-based IMF. The UN called for replacement of the dollar previously on September 10th this year. French President Nicolas Sarkozy called for the dollar to make an exit at the G8 summit in July of this year. Some evidence also suggests that several Arab states have suggested a change from dollar based oil pricing to other mechanisms.
With global leaders beginning to use the term “toxic” in their description of the dollar, we can be certain that our country’s AAA bond rating will soon be stripped. What remains uncertain is if our President heeds this wakeup call and returns us to responsible free-market principles or continues the destructive course which he currently navigates.
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