US Backing for World Currency Stuns Markets

[peaceandlove]

US Backing for World Currency Stuns Markets

US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is "quite open" to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.

By Ambrose Evans-Pritchard
Last Updated: 8:18AM GMT 26 Mar 2009

The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens. David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geo-finance.

"The mere fact that the US Treasury Secretary is even entertaining thoughts that the dollar may cease being the anchor of the global monetary system has caused consternation," he said.

Related Articles at link below:
Geithner seeks power over hedge funds and derivatives
Tim Geithner and Barack Obama 'at odds' over economy
Positive noises cheer Wall Street
A world currency moves nearer after Geithner's slip
Geithner about-turn on dollar shocks currency markets
Gold price spikes as dollar falls
Mr Geithner later qualified his remarks, insisting that the dollar would remain the "world's dominant reserve currency ... for a long period of time" but the seeds of doubt have been sown.

Excerpt:
The markets appear baffled by the confused statements emanating from Washington. President Barack Obama told a new conference hours earlier that there was no threat to the reserve status of the dollar.

"I don't believe that there is a need for a global currency. The reason the dollar is strong right now is because investors consider the United States the strongest economy in the world with the most stable political system in the world," he said.

Article continues and Video: http://www.telegraph.co.uk/finance/economics/5050407/US-backing-for-world-currency-stuns-markets.html

[peaceandlove]

China and the Dollar

Markets don't like Treasury talking down the dollar's status.

MARCH 26, 2009

As if the dollar didn't have enough problems, Timothy Geithner took China's bait yesterday and said he was "quite open" to its suggestion this week to displace the greenback with an "international reserve currency." The dollar promptly fell and stocks followed, before the Treasury Secretary re-emerged to say "the dollar remains the world's dominant reserve currency. I think that's likely to continue for a long time."

Mr. Geithner is learning on the job, and yesterday's lesson is that it isn't smart to fool with currency markets when you are already tempting fate with a gigantic U.S. reflation.
Treasury and the Federal Reserve are flooding the world with dollars to break the recession, and the world is rightly getting nervous. The solution floated by Chinese central bank governor Zhou Xiaochuan -- an increased role for the International Monetary Fund -- isn't desirable. But his warning about the dangers of dollar weakness and exchange-rate instability is still worth heeding.

Article continues: http://online.wsj.com/article/SB123802521198942455.html

Information sourced at: http://solari.com/blog/ Catherine Austin Fitts' website.

[peaceandlove]

Geithner Remarks on IMF Currency Roil Foreign-Exchange Market

By Rebecca Christie

March 26 (Bloomberg) -- Treasury Secretary Timothy Geithner sent the dollar tumbling with comments about China’s ideas for overhauling the global monetary system, only to drive it back up by affirming that it should remain the world’s reserve currency.

Geithner was asked at a Council on Foreign Relations event in New York yesterday about People’s Bank of China Governor Zhou Xiaochuan’s call for a new international reserve currency. He said while he had not read Zhou’s proposal, he understood it as a plan “designed to increase the use of the IMF’s special drawing rights. And we’re actually quite open to that.”

Article continues: http://www.bloomberg.com/apps/news?pid=20601068&sid=aVevdIrBPtUE&refer=home

[Barron]

Clearly they Bilderbergers and CFR members are conditioning the general public thru the media with the release of articles like this. A couple of months ago the Daily Telegraph released another article saying that a one world currency would be about 15 years away. and now this article! Guess they're trying ti intro this as a way of washing away all their US (Federal reserve) monetary sins and starting afresh but with even a tighter stranglehold (read "control") on the world's people! Enough! We do not need this!

[Dantheman62]

I thought in your other thread peaceandlove,about congress woman Bachmann, that both Bernanke and Geithner said no to the Chinese currency thing?

[peaceandlove]

Oops, Dupe!

[peaceandlove]

Yes Dan, that was on March 24, 2009 as answered to Rep. Michelle Bachmann (MN) in the House.

Congresswomen Bachmann 'Do-Si-Dos' with Bernanke and Geithner

At minute 2:25 she poses a question to both Geithner and Bernanke. "We've seen both China, Russian and Kazakhstan make calls for an international monetary conversion to an international monetary standard as soon as the G20 (April 2nd) and I'm wondering would you 'categorically' renounce the United States moving away from the dollar and going to a global currency as suggested this morning by China and also by Russia." Both Geithner and Bernanke answer: "I would, yes" and "I would also" respectively. (Can't see Geithner's face when he answers, but you can SEE Bernanke's!!!! (Looks nervous to me.)) Shortly after that question Geithner responds to an AIG question with this: "Because of the absence of authority, YOUR GOVERNMENT was faced with no good options. (I wonder whose government Geithner works for?)

Video is here: http://www.campaignforliberty.com/blog.php?view=14139&cpg=1#comments
Or here: http://www.youtube.com/watch?v=E9DgMG-_6Ls&eurl=http%3A%2F%2Fwww%2Ecampaignforliberty%2Ecom%2 Fblog%2Ephp%3Fview%3D14139%26cpg%3D1&feature=player_embedded



Here is another interesting Bachmann video from October 17th, 2008.

Michelle Bachmann Accuses Congress of Being Un-American

Video (1:03): http://www.youtube.com/watch?v=E_pN2IPAw6E

[peaceandlove]

A New World Currency Draws Nearer After Geithner's Slip

Submitted by cpowell on Thu, 2009-03-26 14:47. Section: Daily Dispatches
By Ambrose Evans-Pritchard
The Telegraph, London
Wednesday, March 25, 2009

Excerpt:
The pitfalls of a world central bank are obvious. It is hard enough for the European Central Bank to run policy for 16 states in a region with a shared history, and shared EU institutions (Commission, Court of Justice, competition police, etc). The politics of global monetary management would be poisonous.

The heads of the Fed, the ECB, and the Bank of England, must all testify before parliaments and answer to democracy. There is no world parliament, no world government. Who would control a super-IMF?

In theory, this world reserve bank would be above politics. China's plan suggests a resource currency along the lines of the "Bancor" floated by Keynes at Bretton Woods. This was anchored on 30 commodities, giving it a broader base than the Gold Standard. Such a currency would prevent the "credit-based" debauchery of today's fiat system, says Mr Zhou.

Complete article: http://www.gata.org/node/7303

[peaceandlove]

For anyone who has not checked out Benjamin Fulford's blogs which I have been posting under Project Avalon General Discussion http://projectavalon.net/forum/showthread.php?t=12410, this is the most recent.

BLOG By BEN 3/28/2009

The secrets of the US dollar and the new currency

Blog: http://benjaminfulford.typepad.com/benjaminfulford/

A lot of veterans in the financial industry are puzzled by why the US dollar does not collapse. There are some esoteric secrets to the dollar that explain this. First of all dollars are created at several locations around the world. All the dollars have a code number on them and, depending on the code, some are accepted as international currency and some are not. Over 70% of all the dollars ever created are held by non-Americans. Those people do not want their hard earned dollars to be devalued. For that reason, the countries of the world have stopped accepting all US dollars printed by the Federal Reserve Board since September 11th of 2008. That is why there is no hyper-inflation and the dollar has not collapsed despite the Feds printing out over 13 trillion dollars since September 2008.

No matter how much President Obama and the Feds say no to a new international currency controlled by the IMF, they are powerless to do anything about it. The Feds bought themselves a bit more time this week by cancelling their missile defense in the Czech republic and selling two air-craft carriers (to the Chinese?). However, no matter how much they try to buy time, the Fed has de facto lost the right to print a reserve currency.

[peaceandlove]

I thought in your other thread peaceandlove,about congress woman Bachmann, that both Bernanke and Geithner said no to the Chinese currency thing?

Dan,

Remember when we had this conversation on this thread?

Re: What do you think of Benjamin Fulford's latest blogs?
http://projectavalon.net/forum/showthread.php?t=12410

Hey peaceandlove in that other thread with congresswoman Bachmann, she asked the question about the China currency thing to Bernanke and Geithner, and they both said no!

Blessings Dan,

Well, a week from now we will see if they make any progress. Some other prominent people have mentioned they did not think they could pull off a 'New World Currency' this quickly.

Stay tuned, it's like a soap opera out there...like Swanny said on another thread: "You couldn't make this stuff up if you tried."

PaL


I was just listening to Judge Andrew Napolitano speaking at The Campaign for Liberty Regional Conference in St. Louis Missouri: See Speeches here:

RON PAUL ~ St. Louis, Missouri C4L Speech 3/27/2009 "Economy, The Fed, Government"
VIDEO OPTION: Post #2
http://projectavalon.net/forum/showthread.php?p=125251#post125251
I highly recommend listening to the videos of the whole evening, including guest speakers.


At minute 37:52 of the first video, Judge Napolitano comments:

"A member of Congress, Michelle Bachman, with whom I don't agree on everything, but she was brilliant the other day. Congressman Bachman asked Geithner "Where in the Constitution does the Congress have the power?"

Then Barney Frank strikes the gavel and chimes in: "You're time is up, the Secretary does not have to answer."

Napolitano then adds: "Now you can't make this stuff up!"



What say YOU! Isn't that funny? Almost the same words. :naughty::naughty::naughty:

FOR ANYONE THAT HAS NOT HEARD BACHMAN'S SPEECH:
Congresswomen Bachmann 'Do-Si-Dos' with Bernanke and Geithner
http://projectavalon.net/forum/showthread.php?t=12468

[Barron]

Russia, China cooperate on new currency proposals: Kremlin

by Staff Writers
Moscow (AFP) March 30, 2009

Article here:

http://www.terradaily.com/reports/Russia_China_cooperate_on_new_currency_proposals_K remlin_999.html