Scrap the Dollar

After the USA and it's allies won World War II, the world's economies and infrastructure were in shambles. But the USA had remained untouched by war bombs. Consequently the USA retained 50% of the world's manufacturing capability following the war and it's economy had been fully ramped up and was ready to go.

It was with that backdrop that the leaders of the crushed world met in the USA (at Breton Woods) and agreed that the U.S. dollar would serve as the world's reserve currency and that everyone else (who signed on at the meeting) would peg their currency to the U.S. dollar. It made sense at the time because we were about the only nation left to hand out loans allowing the world to be rebuilt.

Further it was agreed that the U.S. Treasury would only print $35 for every ounce of gold that they had in their vaults.....thereby actually tying the money to something of intrinsic value.

How times have changed.

Today the U.S. government is running a shortfall of about $5 billion dollars PER DAY! And it shows no signs of letting up. The Treasury has no choice but to print (or borrow) that money and put the zeroes in the Federal Government's checkbook.

Consequently our U.S. dollar has become very unstable over the past 30 years......and it is now becoming obvious to the rest of the world....and they are beginning to ask for a change to the system that has benefited the USA since the end of WWII.

(Reuters) - A new United Nations report released on Tuesday calls for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value.

But several European officials attending a high-level meeting of the U.N. Economic and Social Council countered by saying that the market, not politicians, would determine what currencies countries would keep on hand for reserves.


"The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency," the U.N. World Economic and Social Survey 2010 said.

The report says that developing countries have been hit by the U.S. dollar's loss of value in recent years.

See it here; http://www.reuters.com/article/idUSTRE65S40620100629

"But Dennis...this is all so boring....what does this have to do with me, my job and my family?"....some of you may ask.

Let me explain it very simply why it does matter to you and me. Under the current system, if the world wanted to buy anything or borrow anything they needed to come up with U.S. dollars....AND WE OWNED THE ONLY PRINTING PRESS THAT MADE U.S. DOLLARS! WE HAD A BUILT IN DEMAND BECAUSE EVERYONE WANTED SOMETHING THAT WE HAD THE KEY TO.

Imagine if one year from now, our Federal Government needs $5 billion per day to keep the doors open...AND WE HAVE TO BORROW THE MONEY FROM THE INTERNATIONAL MONETARY FUND OR THE CHINESE. WE DON'T OWN THE PRINTING PRESS ANYMORE AND WILL INSTANTLY BECOME SLAVES TO THE WORLD AS WE BEG THEM FOR ANOTHER LOAN....to keep our doors open for another day.

Yes, I know that we already owe the world $ Trillions....but we borrowed those $ Trillions in U.S. dollars...so of course we have the luxury to simply print the money to pay back those dollars to the Chinese, Russians, Japanses, etc.....

"But Dennis, you are so dramatic...this could never happen in the USA. After all, we are the USA...the greatest country the world has ever seen!"....some may say.

To those who would say that, I would ask you to read your Bibles and see what has happened to the world's greatest civilizations mentioned there. Where are the countries today who once ruled the world? Where is Babylon, Rome, Greece, Turkey, Persia? What happens to all who would squander what God has given them? What happens to those who refuse to give thanks to their Creator for all He has done?

Doesn't it seem arrogant to believe the USA will be any different?

Doesn't the Bible tell us that, "Pride comes before the fall?"

Hat tip to Tom for the Reuter's article.