Obama Denounces Global Currency While Creating The Very Means For Its Introduction

DarthDubious's picture

Obama, Geithner and Bernanke yesterday publicly defended the dollar and denounced proposals by China and Russia to supplant the greenback with a new global currency, and yet the very policies of the Obama administration, the Treasury and the Federal Reserve are creating the perfect storm for the dollar’s death and its replacement with a new international reserve currency.

As reported in The Shadow's Blog, China has expressed support for Russia’s proposal to hand the IMF the power to create a new supra-national global currency in response to the call for an alternative to the U.S. dollar as the world reserve currency.

Last week the Kremlin called for the “creation of a supranational reserve currency to be issued by international institutions as part of a reform of the global financial system.”

Yesterday, Barack Obama, Timothy Geithner and Ben Bernanke all separately expressed support for the dollar and denounced the Chinese-Russian proposal for a new global currency.

“… The dollar is extraordinarily strong right now,” said Obama during his prime-time press conference. “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. So, you don’t have to take my word for it.”

When asked if he supported the introduction of a new global currency, Obama flatly stated, “No, I don’t support a global currency.”

Watch the clip at rawstory.com.

During Tuesday’s congressional hearing, both Geithner and Bernanke echoed Obama’s statement.

“Would you categorically renounce the United States moving away from the dollar and going to a global currency as suggested by China?” a lawmaker asked Treasury Secretary Geithner.

Geithner immediately responded, “I would.”

“And the chair?” the lawmaker asked, after turning to Fed chairman Bernanke.

“I would also,” Bernanke said.

The creation of a new supra-national global reserve currency to supplant the U.S. dollar would likely lead to a complete collapse of the greenback, of which trillions are held in in foreign exchange reserves by foreign countries such as China and Japan.

In the case of Obama, Geithner and Bernanke, actions certainly speak louder than words, because while publicly denouncing the demise of the dollar and the call for a new global currency, their every policy is creating the very means and justification for its introduction.

Bernanke himself has vehemently supported efforts to create a global regulatory framework that would act as the vehicle for the introduction of a new global currency to replace the dollar.

He has echoed the sentiments of Blair, Brown, Merkel, Sarkozy and others in calling for a new world economic order and “A strategy that regulates the financial system as a whole, in a holistic way, not just its individual components,” Bernanke told a Council on Foreign Relations audience at a speech earlier this month.

“I also will not say much about the international dimensions of the issue but will take as self-evident that, in light of the global nature of financial institutions and markets, the reform of financial regulation and supervision should be coordinated internationally to the greatest extent possible,” said Bernanke, adding that the crisis is “very much an international problem, and it requires international solutions.”

The endgame of a form of supervision “coordinated internationally to the greatest extent possible” can mean little else but the creation of a global currency that can be tightly regulated and controlled by international bodies such as the IMF and World Bank, therefore Bernanke’s public denouncement of a “global currency” is nothing more than a two faced stunt.

In addition, as Ron Paul has warned, Bernanke’s policies are leading to the destruction of the dollar and the creation of a vacuum that would create the perfect pretext for the introduction of a global currency.

Trillions upon trillions of freshly printed federal reserve notes that are being used to throw good money after bad, pay corrupt banker’s bonuses and bailout failed, inept and incompetent banks and corporations at the expense of the taxpayer are going to create a hyperinflationary holocaust that will plunge the dollar into a crisis never before experienced and will undoubtedly put massive pressure on China and Japan to liquidate their holdings of U.S. debt and replace it with a new form of international reserve currency.

The fact that banks are still holding on to the trillions printed since September last year has delayed any significant inflationary impact, but when the lending starts again, confidence in the greenback’s ability to act as an international reserve currency will sink and calls for its replacement will reach a crescendo.

Treasury Secretary Geithner has played a leading role in the wholesale looting of the greenback, announcing this week that the printing presses will be cranked to the tune of at least another $1 trillion to buy more “toxic assets” from the sagging balance sheets of failing institutions - again, all at the expense of the taxpayer who will pay for it with rampant tax hikes and runaway inflation on fuel and food later down the road.

This will mirror the situation in Iceland, where massive devaluation of the krona has destroyed savings and led to calls for the country to abandon their currency altogether and join the Euro. A similar fate awaits the U.S. with “helicopter Ben” and his loyal sidekick Geithner doing everything in their power to destroy the dollar’s value with ceaseless so-called “stimulus” plans.

Some analysts have gone even further, suggesting that the hyperinflationary backlash will not be on a par with Iceland, but with Zimbabwe, where the Zimbabwean dollar has suffered annual inflation of over 200 million per cent over the last few years.

Of course, the pound sterling and the Euro, on the back of identical hyperinflation caused by central banks overprinting money, will also collapse, leaving no alternative but for the introduction of a new global reserve currency to “restore confidence”.

And so we turn to Obama - the man who has used his political capital, slick speeches and confident smile to oversee the greatest destruction of American wealth since the great depression. Obama has acted as the slimy salesman for the introduction of Bernanke and Geithner’s multi-trillion dollar programs that can have no other effect but to weaken the position of the dollar as the global reserve currency, so for him to glibly express his opposition to a new global reserve currency that will replace the dollar is an act of gut-wrenching hypocrisy.

Obama has continually demonized private enterprise in favor of government intervention and has acted as the engine for the gargantuan transfer of wealth from American taxpayers to the Wall Street oligarchs that pull his strings.

While publicly denouncing a move towards a global currency yesterday, Obama has conversely announced that he will pursue a new world economic order, a “new global deal” in alliance with British Prime Minister Gordon Brown.

When we hear the terms “new world economic order,” and a “new global deal,” they are interchangeable with the agenda to create a new global currency. It’s all about taking more power and centralizing it into fewer hands and creating a de facto banking dictatorship that will have complete control over global currencies and exchange rate mechanisms.

Obama, Geithner and Bernanke are the three biggest culprits behind the destruction of the dollar and are culpable for creating the perfect storm for its replacement with a new global reserve currency - so for all three to claim yesterday that they support a strong dollar and oppose a global currency is like Bernie Madoff lecturing you that Ponzi schemes are immoral.

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Submitted by skyspy on Wed, 03/25/2009 - 2:55pm.

" The dollar is extraordinarily sound right now" LOL?? Thanks I needed that. On what planet is the dollar "sound" right now?

We are doomed.

obumbles might want to start reading some newspapers from around the world. Heck he could start in his own backyard with the Washington Post, how about the Wall Street Journal, how about MSN money?

Submitted by mysteryman on Wed, 03/25/2009 - 8:43pm.

Im sitting here looking at an edition of POPULAR MECHANICS from 1982, and Joe Isuzu is making all kinds of unbelieveable statements as to the attributes of this car he is trying to sell... Sound familiar anyone??? Sounds like a prime candidate for the presidency ehh...PEACE

Robert W. Morgan's picture
Submitted by Robert W. Morgan on Thu, 03/26/2009 - 6:04am.

I finally figured out why the DOW is gradually recovering after the huge losses>

Investors used to take Prezbo seriously and react to his crazy socialist anti-business ideas by selling and lowering values. But now most investors have figured out that Prezbo and his inept underlings are not going to actually get anything serious done - especially after the 95% tax fiasco - so they basically ignore him. No more 500 point losses everytime he or his Treasury Secretary Eddie Haskell make a speech - nope just ignore him and life will go on.

Granted he's done some damage and it will take years to recover, but as long as Wall Street realizes Prezbo is still in campaign mode and clueless, recovery will begin. It already has. Then as the far left and centrist Dems get off the Obamawagon for their own different reasons, he sinks further into irrelevance.

I always thought it would be Hillary who would get elected and take the country left and screw it up so badly that the stage would be set for a Republican comeback in 2010 in Congress then a cakewalk for Sarah Palin or Bobby Jindal or whoever in 2012. But Obama is doing far more that Hillary could have so we are just getting to where we need to be a bit faster. I mean he's doing another town hall meeting again today. He's still campaigning.

Of course it is a shame that the Republicans don't take advantage of the rookie's mistakes by sticking to their principles of small government and all that other stuff that is in The Constitution. Where's Newt Gingrich when you need him

And Joe Isuzu is a good analogy, mysteryman.. Just like Ms. Doubtfire is a good description of his silly press secretary.

Submitted by skyspy on Thu, 03/26/2009 - 6:57am.

The market started to recover around the world when China started promoting the idea of a new "global currency" to replace the dollar.

People around the world like the idea of a stable currency.

Robert W. Morgan's picture
Submitted by Robert W. Morgan on Thu, 03/26/2009 - 7:07am.

And China's actions played a role. The main thing is that markets win and lose and even recover mostly because of market-related actions - not the actions of government. Government can only supress markets by overregulation.

Submitted by mysteryman on Thu, 03/26/2009 - 7:01am.

Hope yall do to.........China is toting the note on the U.S.A lets not hope they call that note due anytime in the next 50 years....PEACE

Submitted by skyspy on Thu, 03/26/2009 - 7:14am.

We will all be speaking mandarin Chinese, because we don't have the jack to pay back all that we owe.

We could give them all of our welfare people to pay the interest on the note...??

Submitted by PreciousStahr on Thu, 03/26/2009 - 8:21am.

The US gov’t cannot survive if such a big buyer of U.S. treasury notes like China cuts back. Sooner or later all foreign buyers of our treasury garbage will have to find more safe investments elsewhere. China please save Americans from the hyper-inflationary follies of our gov't and stop buying that crap, so the US gov’t will bankrupt and we can start over to rebuild our economy.

Ofcourse there will be many hungry, impoverished Americans in the process. But China we also ask that you take over world leadership in getting Asia & Europe to send massive foreign aid to America to help us rebuild. Call it the Marshall Plan of the 21st Century.

“Stressed spelled backwards is desserts.”
Coincidence? I think not. Dig in, Girls……
(American Greetings)

The Wedge's picture
Submitted by The Wedge on Thu, 03/26/2009 - 9:00am.

that we have sacrificed our future in orer to keep costs down. We have shifted manufacturing to places such as China and SE Asia and yes, it has kept our costs down. But at what price? Generally, our economy is sun and ground based. The sun provides the earth with approximately 1000 watts of power per square meter of sunlight. This power is converted into plant life growing and the plant and planting cycle continuing. Throw in the minerals in the ground and you have the basis of our economy in very general terms. When we decided that we would be a nation of bankers and soft/service economies, we have sealed our long term doom. With our current banking practices and a fractional reserve system, every bank will failure if account holders withdraw everything. Generally a bank has about 15% of reserves on hand to meet demand. Banks rely on good investments to remain profitable. Bad investiments have crushed our banking industry. When are we going to get back to what people buy and use to survive as our economy?

matt.barnes's picture
Submitted by matt.barnes on Thu, 03/26/2009 - 9:38am.

But it sure is nice saving a dollar on paper towls at Walmart.

The Wedge's picture
Submitted by The Wedge on Thu, 03/26/2009 - 7:25am.

If the Chinese refuse to buy more T bills, or start calling in debt, we can always print more money and pay for it that way. Yes, it will destabilize our currency, but we are already on that road.

We are already eroding contract law. What is our mystery of capital and capital formulation? It is the private ownership of land, and our ability to use the land as collateral in other financial transactions. With an erosion of property rights--liberalized eminent domain, a generalized acceptance of seizure for the public good; we are well on our way to destabilizing our capital creation. As the government becomes arbitrary, whether at the federal or local level, business dries up in an evolving landscape. Would you set up a business in the Avenues-with talk of eminent domain in the air?
With our "evolving" government philosophy-not tied to any sort of constitutional authority--we most likely will "nationalize" foreign-owned land and businesses if we get in a dire of enough situation. Our erosion of property rights and contract law are getting us closer to that situation.

S. Lindsey's picture
Submitted by S. Lindsey on Thu, 03/26/2009 - 8:57am.

at least Sniffles think so..

More recently, Chinese officials have voiced concern about their massive holdings of U.S. Treasuries and dollar assets in general. A couple of weeks ago, Premier Wen Jiabao expressed concern about the safety of U.S. Treasury securities. Last month, a Chinese official put it bluntly: "We hate you guys. Once you start issuing $1 trillion-$2 trillion, we know the dollar is going to depreciate." But given the lack of viable alternatives, they're stuck buying Treasuries, he said."

"But given the lack of viable alternatives" What happens when those alternatives are given??? hmmm.. Sniffles thinks it will never happen.. anyone else care to bet on it..?

I will not lower my standards.. So UP YOURS.. Evil


Submitted by skyspy on Thu, 03/26/2009 - 7:37am.

I also would not buy property near or around the by-pass-to-rivercrimedale.

Very good points there Wedge. Have a good day.

The Wedge's picture
Submitted by The Wedge on Thu, 03/26/2009 - 8:21am.

You have a good day as well

sniffles5's picture
Submitted by sniffles5 on Thu, 03/26/2009 - 7:20am.

The Chinese will NOT call our debt, because that would make their exports to the United States prohibitively expensive, and ruin their economy far more than they could ruin ours.

Remember, we import six times as much stuff from China as they import from us.

It's a Mexican standoff..the only thing China can do is ease their non-US exports to another currency....and exactly WHAT currency could they use? They tried the Euro, had no success. The Pound?

Their choices are limited, especially with petroleum denominated in dollars.

Stop believing all the tinfoil twittery you hear.

S. Lindsey's picture
Submitted by S. Lindsey on Thu, 03/26/2009 - 7:53am.

not a Communist one.. History has proven over the years that many Communist Goverments are willing to bring themselves down if they can take the US with them.. The USSR is a good example of a Country trying..
A different scenario for the China Syndrome..
The Arab Emirates buy our debt from China and agrees to take over the import status that the US enjoyed over the years.. once acomplished they simply refuse to finance our debt further or worse call in our debts and force us to "cash in" the T-bills..
Yes I know anti-conspiracy posters here are going to pooh-pooh all over this.. not surprised.. However ask yourself when you say it will never happen.. DID ANYONE PREDICT THE FALL OF THE USSR? So stranger things have happened and can happen again...

I will not lower my standards.. So UP YOURS.. Evil


Submitted by skyspy on Thu, 03/26/2009 - 7:30am.

We live in an interesting time.

I don't believe everything I read, however it will be interesting to see what happens.

When they talk of a "new global currency" that would be stable the only thing I can think of is gold. What else is there?

I read several newspapers online and each one seems to have at least one economist expressing concern over the stability of the U.S. economy.

Hope for the best and plan for the worst. I guess that is all we can do. Have a good day sniffles.

sniffles5's picture
Submitted by sniffles5 on Thu, 03/26/2009 - 6:11am.

Let's see if I understand you correctly, Morgan....
When the Dow goes down, it's Obama's fault....
When the Dow goes up, Obama had nothing to do with it.

Rather interesting bit of logic you have there.

Auditioning for a role as Libertarian spokesperson perhaps?

The Wedge's picture
Submitted by The Wedge on Thu, 03/26/2009 - 7:15am.

I find it somewhat laughable how much a president gets blame or praise for the state of the economy. In the very short term they can affect markets, but not for the long haul. When the government weighs in, there are always winners and losers, but generally it is bailing money from one side of the boat to the other. How much of the stimulus boondoogle was Obama vs the Congress? I doubt seriously that he wanted the level pork and nonstimulus items than ultimately was passed. He was most likely forced.

Long term is a different story. Now I believe that the President wants to convert to a command economy. I believe that when banking, insurance, automotive, and healthcare are rolled into the governmental domain, the US will approach a 40-50 percent command economy. Obama has the bully pulpit and a mandate, but it is tenuous at best. I don't think that he has the capital to get there. Do you want to see instantaneous change? Double the bank reserve rate from an effective 15% to 30%. That will show some change. We may have to do measure like that in the next several years anyway, to get a handle on our burgeoning money supply.

S. Lindsey's picture
Submitted by S. Lindsey on Thu, 03/26/2009 - 7:13am.

while it was plunging.. so now he gets credit when it blips upward? So Snif using your logic.. when it dives again then is it his fault finally?

I will not lower my standards.. So UP YOURS.. Evil


Robert W. Morgan's picture
Submitted by Robert W. Morgan on Thu, 03/26/2009 - 6:14am.

And I'm sticking to it. Makes more sense that what I see on TV every single day.

hutch866's picture
Submitted by hutch866 on Wed, 03/25/2009 - 11:03am.

You take this right from prison planet but you don't admit to it now, way to go, that's much better then cutting and pasting.

May the FARCE be with you.

I yam what I yam....Popeye

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