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Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the... More
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  • A New World Currency? 4 comments
    Jul 15, 2009 10:19 AM

    The dollar is still the world’s reserve currency, but the question is “For how much longer?”

    In Italy last week, the leaders of the G-8 industrialized nations all received a gold coin called a “Eurodollar”—valued at $3,900 and created by a Belgian designer who also designed the common side of the euro coins back in the 1990s.

    For United Future World Currency, the group behind the coin, the Eurodollar is a big step forward toward its goal of a currency “capable of speaking a single, comprehensible language to foster humankind’s innate desire to go farther, to surpass boundaries, and move towards true principles of peace, freedom, brotherhood and understanding beyond issues of race, political and religious beliefs and party interests.”

    And you thought we were just talking about money.

    China also used the G-8 meeting to publicly advance its position that the dollar needs more company as a reserve currency.

    China thinks the dollar (and to a lesser degree, the euro) should be replaced as the reserve currency by an International Monetary Fund basket of currencies with the awkward name of “Special Drawing Rights.” The SDR is now made of the dollar, the euro, the British pound and the Japanese yen.

    China also believes its own currency, the yuan, should play more of a role in global trade. Bloomberg recently reported that there has been a drop in dollar-denominated contracts by Chinese exporters, with the yuan being used instead to reduce transaction costs and exchange-rate swings.

    This trend could continue as the dollar’s valuation remains volatile. With the trillions of dollars in economic stimulus already created by the Federal Reserve and the prospects for additional stimulus efforts, that volatility is not likely to change any time soon.

    Conventional wisdom is that the dollar’s position as the world’s reserve currency is in no immediate danger. That’s probably true, but United Future World Currency is thinking long-term about a world “united by a coin.”

    09-479

    Themes: currency, G8
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This post has 4 comments:

  •  
    Yes, it would be to China's favour to lessen it's dependency on the Dollar, especially after they loot the United States of much of it's real worth and then set their sites on the remainder of Europe. The authoritarian regime in Beijing will not rest until they control much of the world's wealth and overall reserves, and we in the West are simply handing over our economies to them on a silver platter. I believe there must be substiantially less trade with China and more trade between the United States and Eurpoe, we have much more in commom and can compete on a greater even-playing ground than we can ever do with China. Please remember, we in the west do not pay a dollar a day for labour as is commonly done in China. We have greater benefits for our labour force than an ordinary chinese will ever see and we have far higher standards with regardto consumer products are concerned. The only way for us to pull ourselves out of the US / EU recession is to become more self reliant rther than to transfer even more of our real with to Beijing, it will be to our eventual destruction an to their dominance, it's a truly scary scenario.

    M Alexander
    Jul 16 05:38 AM | Link | Reply
  •  
    Yes, it is scary, but the turth, the AWFUL truth is, Obama is selling America up and down the river as quickly as he can, so expect this to happen. Our puppet president is not for America, and he, not being an American, does not have our best interests at heart. I'm never surprised at how he compromises our freedoms, our peace, or our general well-being. He's anti-Christ, anti-American and anti-anything that is good. Gird up your loins and make ready for the destruction that is surely to come under the hands of this narcissistic, pandering, enemy-butt-kissing, broke-back man who was placed in office under the corrupt electoral college system that operates under the CFR, Illuminati, Skull and Bones, Bohemian Grove, The three Hundred, and other secret, powerful, elite, small groups of rich people here in America and in Europe.
    Jul 22 10:32 AM | Link | Reply
  •  
    ha ha! that's a good one.. everything was fine in America- But then we elected a black kenyan for president. ha ha! BTW- which fraternity did the bushes and kerry belong to again? i forgot.


    On Jul 22 10:32 AM User 458268 wrote:

    > Yes, it is scary, but the turth, the AWFUL truth is, Obama is selling
    > America up and down the river as quickly as he can, so expect this
    > to happen. Our puppet president is not for America, and he, not being
    > an American, does not have our best interests at heart. I'm never
    > surprised at how he compromises our freedoms, our peace, or our general
    > well-being. He's anti-Christ, anti-American and anti-anything that
    > is good. Gird up your loins and make ready for the destruction that
    > is surely to come under the hands of this narcissistic, pandering,
    > enemy-butt-kissing, broke-back man who was placed in office under
    > the corrupt electoral college system that operates under the CFR,
    > Illuminati, Skull and Bones, Bohemian Grove, The three Hundred, and
    > other secret, powerful, elite, small groups of rich people here in
    > America and in Europe.
    Aug 31 04:09 PM | Link | Reply
  •  
    That's rediculous to say Obama is the reason more like the companies that have been selling our jobs overseas for a long time. Companies like wal-mart and best buy and the large corporation you see in every town in America buy our supplies for cheaper overseas then buying within our country. We also don't care about them or the greenhuse effects suffered when they are the bad guys now.. They product large quantities of waste by taking in our waste and reusing our materials, recycling isn't a clean process (especially with electronics) Chinese people risk their lives for a wage high enough to live. America simply builds up our military to be the most advanced in technology of war and has always been in wars because it shows we are not afraid to through punches if someone fucks with us. Military is all you really need think about it would you risk getting your ass kicked or killed for some money a drug dealer borrowed from you?? There's a reason why America has spent more money on the military then any other expense of government combined..
    Sep 23 03:44 PM | Link | Reply
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