Plausible Way to Devalue the "Dollar"?
Posted: July 8th, 2010, 7:53 pm
How to devalue a fiat currency? One has to have something to "devalue" it against.
Since the American "dollar" had been established as THE world's reserve currency, there was little to devalue it against. Gold? Nixon fixed that in 1971-2.
Never before have we seen such a cry by so many counries demanding the world abandon the American "dollar" as the world's reserve currency. But to replace it with what?
I think it is plausible that we are being set up to accept these SDR's (Special Drawing Rights) issued by the BIS (Bank of International Settlements) as the new world's reserve currency. It would, almost over night, (1) establish the long desired one world central bank. (2) It would allow all these national central banks (including the private Federal Reserve) to devalue their fiat currencies, impacting all this sovereign debt. The "dollar", could (would?) be devalued against these SDR's and we would immediately lose the protection of being the world's reserve currency we've enjoyed for decades, allowing us to export our debt. With the BIS taking that role over, America would see "the chickens come home to roost" real fast.
What happened to Mexico when the peso was , overnight, devalued agaisnt the dollar? We could easily see a similar result in this country.
I dunno, whatduya think?
Since the American "dollar" had been established as THE world's reserve currency, there was little to devalue it against. Gold? Nixon fixed that in 1971-2.
Never before have we seen such a cry by so many counries demanding the world abandon the American "dollar" as the world's reserve currency. But to replace it with what?
I think it is plausible that we are being set up to accept these SDR's (Special Drawing Rights) issued by the BIS (Bank of International Settlements) as the new world's reserve currency. It would, almost over night, (1) establish the long desired one world central bank. (2) It would allow all these national central banks (including the private Federal Reserve) to devalue their fiat currencies, impacting all this sovereign debt. The "dollar", could (would?) be devalued against these SDR's and we would immediately lose the protection of being the world's reserve currency we've enjoyed for decades, allowing us to export our debt. With the BIS taking that role over, America would see "the chickens come home to roost" real fast.
What happened to Mexico when the peso was , overnight, devalued agaisnt the dollar? We could easily see a similar result in this country.
I dunno, whatduya think?