Thursday, April 2, 2009

New World Reserve Currency- yeah right

Could you believe the world staking their financial underpinnings by a country run by the Mafia and ex-KGB agents ? Supporting your economy with a currency run by Chavez in Venezuela ? The problem with expanding the use of the IMF's SDR's is that a currency run by people who don't have a stake in it makes the currency controllers too detached from the economies relying on that currency. So far the Euro has been a success, but that has been easy because of the global expansion over the past seven years. During these times, different EU members will require differing solutions to their financial problems. New EU member Hungary, for example, is waiting for the EU to step up to the plate and dump billions in aid for it- they will be waiting a long time. Reserve currencies like the dollar, EU and Yen are trusted because those who run it have a direct stake and interest in it- therefore, you get the best management possible. The current financial crisis has nothing to do with the dollar being the dominant reserve currency. Even if the IMF SDR's were dominant, that would not have prevented other countries from buying into exotic financial instruments and vehicles from America.

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