Head of IMF Proposes New Reserve Currency

Dominique Strauss-Kahn, the head of the International Monetary Fund, suggested Friday the organization might one day be called on to provide countries with a global reserve currency that would serve as an alternative to the U.S. dollar. "That day has not yet come, but I think it is intellectually healthy to explore these kinds of ideas now," he said in a speech on the future mandate of the 186-nation Washington-based lending organization. Strauss-Kahn said such an asset could be..similar to but distinctly different from the IMF's special drawing rights, or SDRs, the accounting unit that countries use to hold funds within the IMF. It is based on a basket of major currencies. -snip- "The challenge ahead is to find ways to limit the tension arising from the high demand for precautionary reserves on the one hand and the narrow supply of reserves on the other," he said. Several countries, including China and Russia, have called for an alternative to the dollar as a reserve currency and have suggested using the IMF's internal accounting unit. Strauss-Kahn said the IMF also needs to do a better job of tracing how risk percolates through the global economy.

That’s Funny, I called for a new currency today as well but NOT for those crooks.

The column to which I refer is titled “Introducing a BETTER US Currency” and is located at http://www.TableOfWisdom.com

There are pictures and emphasis within the post that make reading it at TableOfWisdom much more expedient but here’s the start and if you like it, go to the site.

February 26, 2010

Introducing: A BETTER US Currency
By MrArbitrage

The media and analysts are mystified as to why gold is suddenly going up in tandem with the US Dollar because they traditionally have an inverse relationship. This buttresses what I have been contending here for years. Whether the dollar is up or down versus other world currencies is about as relevant as a step ladder on the Titanic. Better yet, remember (in the movie) all of those people who rushed to one end in the ship so when the opposite side sank first, they were momentarily lifted high in the sky as though they were at the top of a sinking sky-scraper? Well, that’s the global currency situation and it’s still too soon to say which nation will have the luxury of drowning on the “upward” end. If you haven’t guessed yet, gold and other precious metals are the proverbial lifeboat and as with the Titanic, few people had a lifeboat in the end because of negligence in preparing.

It always amuses me how “economists” view situations and often come to erroneous conclusions. Some fallacies like the Sun and planets revolving around the Earth have a deceptive allure to them because of appearances. Other fallacies, like the notion that “gold is being quite the rebel lately” as one headline at Marketwatch.com reads today, have additional help from those who have a vested interest in the notion.

It’s mainly the persistent prodigality and plunder of our elected scoundrels that is driving up the price of gold. It’s not just gold; you see oil here at $80 per barrel in a horrendous economy because of the counterfeiting of our elected scoundrels. It is all related. These criminals have for the past year been trying to further con us by outwardly scoffing at the notion of “inflation” and are “warning” us about what they absurdly predict will be “deflation”.

Swindlers like Charlie Rangel, Barney Frank and Chris Dodd have to lie to you in order to prop up their scam. You want me to believe in DEFLATION? Ok, I will say here and now that we have RAMPANT deflation – in our currency- but CERTAINLY not in food, energy, and products that are essential to human sustenance. Sure you can get a great price on a 60 inch plasma TV – because most people cannot afford the plasma right now, nor do they NEED it.

I honestly don’t understand how people actually fall for this nonsense. I live in the real world. I buy my gasoline and see what is happening at the pumps. I buy my groceries and it is nothing short of stunning what their counterfeiting has done at the stores. I was at Sam’s Club yesterday and an average size container of blueberries was $8.00 and an average container of strawberries was $6.00! My generic, store brand gallon of “purified” water is up 30% in a two month period. What items haven’t –technically-gone up in price (like ice cream and soda) have shrunken in quantity by 30%.

So I was waiting in line at the grocery store yesterday. Rather than read more about the sordid Tiger Woods exploits, I took a look at the candy isles that surrounded me and remembered that not so long ago I could buy 2-3 candy items for a buck. Sensing an inflation tirade coming on, I took out my Blackberry camera and took some pictures. I was amazed at how little that dollar can now procure in the way of sweets. The photo below pictures the reality of where we are. The Hershey bar, the M&M’s, KitKat, Twix... are all $1.05 with Florida tax. (Photos at http://www.TableOfWisdom.com )

See all the gum: My US Dollar cannot even buy me the cheap, second tier singled pack- of “Freedent” gum! Deflation??? Where are the pitch forks?

Ladies and gentlemen, this is serious. These illustrations may seem trifling to some but these are the foreshocks of hyper-inflation to come. As you can see, serious damage has already been done. But it isn’t over. As we witnessed on February 25, 2010 – the elected scoundrels met to devise a way to further plunge our nation into the abyss. What they are trying to promulgate with their government healthcare scheme is unmitigated economic jihad on the US dollar and will absolutely require trillions in additional counterfeit dollars. If you –own- debt (bonds) and cash/equivalents – you are unprotected.

Let’s suppose you already own gold and/or silver but you want to add something to your hedging program that can easily be traded as –currency- in smaller denominations.

I have an idea for you. To set the table for this one, I think we agree it is an axiom that our dollar is secured by little more than the empty rhetoric of elected swindlers. Due to their profusion, the dollar has lost over 90% of its value over the past century and they are on their way to 100%. Because they took us off of the gold standard, there is no measurable valuation for our currency and the same goes for our Treasury Bills, Notes and Bonds.

By thinking a little outside the box, the realization came to me that the US Government currently issues an overlooked vehicle that COULD easily function as a cash-like currency –and- an investment. Unlike the Federal Reserve Notes we use, this vehicle is backed by something with measurable, intrinsic value. The best part is that it could also go far higher in value than the broad inflation rate.

Without further ado, the idea I bring you is none other than...”

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God Bless America, what’s left of it.

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