Weak Dollar Raises Talk of Alternative World Currency
By: Jack Dawsey
About a year ago in the Sampson Sun, I predicted the possibilities the U.S. dollar could be, (and I underscore the word could), be replaced with another currency. At the time, I mentioned that it could be replaced by the Amero, i.e., a combination and merging of the American dollar, and the Mexican peso, and the Canadian maple leaf. Since that article, just about every day seems to bring more bad news for the dollar.
There’s been steady erosion in the greenback’s value. It’s down 16% according to some experts in just the last 6-months. That’s down 16% in "your" money -not down 16% in the values on Wall Street where daily manipulations occur with the blessings of the Federal Reserve System and the U.S. Congress (composed of democrats and republicans).
Depending on whom you believe, the dollar’s real value is hovering near its 52-week low, and represents either the market’s devastating verdict on the Obama Administration, or the foolish rediscover of newly emboldened Wall-Street investors. Maybe it’s a bit of both, but the beat goes on.
The dollar devaluation is now making Chinese officials nervous. They are taking a bath in losses on their enormous U.S. Treasury holdings, now paying a whopping .001 percent. It’s been reported that foreign bankers are talking of promoting an alternative global currency, such as the euro, or the yuan or a new medium of exchange designed by the International Monetary Fund.
Not long ago the USA Today compared the following year-to-date changes in the value of the dollar against various other foreign currencies. For example, the dollar has weakened a negative -20.8% against the Canadian dollar. It has weakened a negative -14.0% against the English pound. It has weakened a negative -7.6% against the euro, and a negative -5.0% against the Indian rupee. And guess what? It has weakened a negative -6.8% against the S. Korean won. Yes, that’s correct, South Korea.
Do you remember that country? Did you know that 55,000 young American soldiers lost their lives in Korea from 1951- 1953?
When my 17-year old Marine Corps brother, now deceased, was there in 1952 he lost the use of his thumb. Moreover, as a result of fighting the North Korean and Chinese insurgents, he incurred a mental breakdown that he had to live with for 45-years with little assistance from the Veteran Administration.
He said that in 1952 South Korea didn’t have a pot to pee in, nor a window to throw it out. Yet today, their currency is equal to or worth more than the American dollar.
[Hum!!!! Let me see. Since the Korean War, we have elected five republican presidents and five democrat presidents, and appointed one republican, Gerald R. Ford. Nonetheless, our nation is deeper in debt and we’re losing the fight against foreign currencies. Is there something wrong with this picture?]
Flying in the face of the last 60-years of American history, some voices on the far right wing of our politics, such as Rep. Michele Bachmann, R-Minn. and the half governor of Alaska, and that nut-case Newt from Georgia are crying: "anti-American conspiracy" or worse, "lock and load" your guns. They blame the Obama Administration for our financial woes, apparently a political convenience.
I wonder if the enormous U.S. debt that started 30-years ago and has continued through both democrat and republican administrations had anything to do with the falling dollar. And by the way, I wonder if trying to fight two wars at the same time, on a U.S. Congress credit card has anything to do with the falling dollar. I’ll let the reader figure that out.
By the way, vote Republican or Democrat in the May Primary, and when you do, listen carefully for a certain song while in the voting booth. Your ears may hear Sonny and Cher singing the 1968 hit: "And the beat goes on…"