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New World Reserve Currency Continuously Being Floated

Here's the latest from Bloomberg:

http://www.bloomberg.com/apps/news?pid=20601010&sid=aeFVNYQpByU4

As usual, the article is not getting at the root of the problem.  The problem is that all currencies are now fiat, backed by nothing but faith.  People worldwide are rapidly losing faith in ALL fiat currencies.  This is part of the reason for the commodities boom, as people are accumulating hard assets in lieu of worthless paper.

A new World Reserve Currency IS needed, but it must be backed by, and redeemable, for a commodity.  Exchanging a national fiat currency, the dollar, for a supranational fiat currency, does not solve the problem.  Indeed, all it does is produce a loss of sovereignty for Americans.

The best thing to do would be to have the dollar, euro, yen, yuan, Swiss franc, Aussie dollar, Canadian Loonie, etc. all backed by hard commodities.  Then, let the best currency win on deciding the new reserve currency of the world.

Central planning has been a disaster, whether it is tried in the USSR or here with central banks, farm subsidies, government monopoly on mortgages, etc.  The last thing we need to do is have a centrally planned global currency.

Central banks everywhere have a solid track record of destroying whatever currency they have a monopoly on.  How do you stop a global central bank from inflating away the value of the new fiat reserve currency of the world?

Disclosure: Long gold, silver, mining companies