Commentary by Kevin Hassett
Aug. 31 (Bloomberg) -- Like the Chinese, the folks at Disney World peg their currency to the dollar. Hand them $1 U.S. and you receive one Disney dollar, complete with a picture of Mickey Mouse or his friends, plus the signature of Disney’s official treasurer, Scrooge McDuck.
That transaction now seems superfluous. The U.S. dollar is rapidly transforming into a Mickey Mouse currency. This has led to a rising call for the creation of an alternative to the dollar in the form of a new world currency. It would be an enormous mistake to discount these calls as a sideshow. The odds of a world currency emerging have never been higher.
The calls are coming from many corners. Nobel Prize-winning economist Joseph Stiglitz chaired a United Nations panel that recommended the creation of a global reserve currency. Zhou Xiaochuan, governor of the People’s Bank of China, proposed that the International Monetary Fund take over the global leadership role traditionally ceded to the U.S. And Russian President Dmitry Medvedev handed out minted coin samples of a new world currency at the recent Group of Eight meeting in Italy.
These calls are worth paying attention to for a number of reasons. The arguments for a world currency are much better than you might think. An alternative to the dollar clearly has a promising market that can develop even if it is opposed by the U.S. And the idea of a world currency is most attractive to those who devoutly believe in multilateral institutions and the Canon of Lord Keynes -- beliefs that are hardly in short supply in Barack Obama’s White House.
Bloomberg Link
Mr. Coming Depression! How dare you! You weren't supposed to post that naked picture of me on top of you in the tub!
ReplyDeleteJust don't post the video, Okay?
But to change the subject, a one world currency is obviously in the works..but when, how and why it is implented is open to contemplation.
ReplyDeleteThe pheonix shall rise from the ashes of what precisely?
To what degree must modern society be reduced to ashes before the time will be right for
the pheonix
The good news may be that after the dollar crashes it may buy me a ticket to ride a coaster.
ReplyDeleteA global currency does make more sense, especially with the dollar going down the tubes, not that that will help America much. On the contrary, it will force us to play fair ball.
ReplyDeleteBut what I would rather see is the use of money done away entirely.
The only use this article served was the main attraction. The picture. lol
ReplyDeleteA global currency would bring the US down to at best the average standard of living. Since the average person globally earns with we pay to buy a ringtone on our cell phones, it won't be good.
ReplyDeleteOthers slave and produce and we send them little slips of paper.
In the not too distant future it will be very odd here. You will have people reduced to the level of third world earners, but with modern buildings, cars, etc sprinkled around. Maybe they'll be reminders of what once was ...
Tell us *precisely* how the "new" currency is any different than the "old?" What defects in the old have been removed from the new? Most critically, what is the backing of the "new" currency? On the other hand, what choice do the timid slave-labor sheeple have if they want to keep their cell fones activated and SUVs running?
ReplyDeleteTHE NEW CURRENCY Will take over the old currency as a reverse split 10-1. Your old currency of $10 will equal $1.
ReplyDeleteWOW ! someone finally found Obamas baby pictures !
ReplyDeleteI heard they were born white and remained that way for the first few mins.