Doc 224899

PBC's Proposal for International Monetary Reform

It is time for the US government to begin formulating a new foreign policy hinge to take the place of "dollar diplomacy", because "dollar diplomacy" will be even less effective when the dollar is no longer a global reserve currency.

If US currency will no longer be the global reserve currency, then the US government had better stop wasting time bickering about bonuses and micromanagement plans, and put on the big girl panties needed to address foreign policy.

It is unlikely that our dollar diplomacy foreign policy, based on attempts to bribe people who hate us into acting like they tolerate us, is going to carry us much farther, so it's time to look for a new approach. We should consider something other nations are likely to understand and react to in a predictable fashion, such as "We don't care what you believe or say. Do what we want or we'll bomb something you don't want to lose, and we'll use stealth technology so you can't pin it on us."

Too bad Hillary Clinton is our new Secretary of State. Just when the job became crucial we get a Secretary of State nobody else in the world trusts, whose credibility with foreign governments is limited, who alienates our own military with every breath she takes, who has inspired the majority of Americans to have an unshakable animosity for her, and who seems to have the troubling capacity to believe anything she finds it convenient to say.

China isn't talking about a "neutral" reserve currency. China is talking about a reserve currency that favors China, and that reduces the risk China incurs by holding US treasuries.

There were rumbles and murmers a month or two ago about a proposed Chinese+Russian currency at least partially backed by gold. We should direct our Federal Reserve to review its policies with respect to gold, to stop selling gold, and to buy more gold.