The New Real Global Reserve Currency

By: David_Vaughn

Well! Well! Well! China is proposing getting rid of the US dollar to be replaced by a new global currency that would become the new international reserve currency. China wants to see stability in the currency mark ets and the US dollar is not providing this. Actually, China is very concerned about the new dollars being printed and their future impact on inflation.

Wow! China believes in the potential of inflation? At least they are smart enough to recognize what it is and call a spade a spade. And China is worried about that two trillion it presently is holding of foreign exchange reserve in US dollars.

Demand for gold is soaring.

So far investors have purchased close to 3 billion dollars worth, The highest demand on record. Because of financial mark ets collapsing investors are beginning to experienced real fear. Especially since they have already witnessed there 401 portfolios lose over 50& of their value.

The onset of a global recession and falling stock mark ets have triggered a stampede for gold – the traditional safe haven during times of uncertainty. There is not one state left in the United States that is not in a grim recession. . We were just all talking a few months ago about the discussion of a new reserve currency and everyone laughed. Well, they're not laughing now. Don't think so. What's happening? The world is getting tired of our debtor status. Now, because of our great debt to other countries the United States is learning just what it means to be a slave to the lender. And the more paper dollars the US create those chains will only become stronger.

Are your knees weak? Do you see now where world events are now taking the United States ? Forget about your knees and consider your long term standard of living. Anyway, our goose is cooked. Where is hope? What now are our expectations? As has been said a million times those with no debt and sitting on cash will make out well in the ensuing years. Providing the system holds together nominally and we don't find ourselves back in the Stone Age. But we never know.

There are those predicting now the end of the world in 2012. I think the last time the world ended was the year 2000. But like I say who knows for sure? All we do know for sure is that our life times here on this earth is very short and it's not long before we return to the dust from which we came. Did you know that everything on this planet, its entire makeup, came from the depths of an exploding star? That's exciting to think about. Gold's origin is from the depths of an exploding star. Wow! Makes you stop and wonder.

America 's reputation is now ruined and in the outhouse. Well, the question now is what new international currency will save the day? The dollar is about toast. Whets going to replace it? We need to secure global financial security and economic growth?

Let's find a solution. Will the US ever pay off its incredible debts to foreign countries? I doubt it. Don't think that was ever in the plan. For the most part the United States has considered the rest of the world fools. And what is China going to do? I'm sure they are now feeling a great deal of fear and uncertainty over the near high possibity of losing all the US assets they hold. But so it goes for suckers. And now let's see what Russia is up to.

Russia is calling for a partial restoration of the Gold Standard to bring back discipline to the world financial system. Arkady Dvorkevich, the Kremlin's chief economic adviser, said Russia would favor very much including gold bullion in the basket weighing of a new world currency. Both the Russians and the Chinese are preparing to get down to work and to plan strategy and a debate to seek with all seriousness a new alternative to the US dollar.

Mr. Dvorkevich wants to see gold with a seriously considered new role in the new currency system. And what do we have when gold is not considered in a basket of currencies held by nations? You find paper currency with zero backing standing behind it. According to the World Gold Council, exchange traded funds are the main beneficiary of the flight to safety.

Gold brings financial discipline to the financial system. And as I said before the nations of the world are growing tired of the fantasy that more borrowing is the answer to the debt crisis. Russia seems very serious in wanting the world to return back to gold. And it's not just the Chinese and the Russians wanting a new currency. A United Nations panel of expert economists also are to replace the US dollar with a more stable and less volatile currency based system.

And of course the foreign aid the US is receiving is what is keeping up the grand life styles of Americans. A nice little transfer of trillions of dollars of wealth at practically zero interest is being transferred to the US . Even the International Monetary Fund thought the idea of a new rerserve currency was an excellent idea and plans to pursue the discussion in the coming months.

Seems like the United States is losing some of her autonomy. And laughing all the way to the bank George Sorus chuckled that he made $1.1 billion last year as everyone else suffered.

There remains a large contingent that really believes the economy will be made as good as new with a little sum like 13 trillion dollars Should the new reserve currency rest on the silver standard, the Gold Standard or the old Bretton Woods System. One thing is certain for sure. Those closest to retirement remain wiped out but the younger generation believes yet that they will be able to recoup their losses over time.

The dollar is dying a slow and painful death giving the illusion strength still remains in its muscle. It is sad that the world population do not know how important it is yet to get into gold and silver. How much more money and savings have to be lost before people wake up and realize this financial crisis is for real? Depression is upon us as manufacturing around the world is in free fall. As the stimulus packages increase by leaps of a trillion dollars a crack the rest of the world just will no longer be able to fuel the increasing US debt.

Russia says it has never seen such strong demand for investment coins.While the U.S. Mint says sales of its one-ounce American Eagle gold bullion coin sales s rocketed over 400 percent to 710,000 ounces in 2008. Unprecedented is the demand for gold and silver now. All estimates is the gold and silver prices will be greater in 2009 than 2008.

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David Vaughn
David4054@charter.net

The future legacy of the United States will be the refined art of financial leverage.

© Copyright 2009, Gold Letter Inc.

“The Worldwatch Institute, an organization that focuses on environmental, social and economic trends, says the current rate of global demand for resources is unsustainable.”  

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