LDS Freedom Forum

Bella wrote:Sorry! Hey if you have the link for Russia. I can edit the article and we can kind of write it together. team work!
I will change the title to China and Russia....

Russia suggests the G20 summit in London in April should start establishing a system of managing the process of globalization and consider the possibility of creating a supra-national reserve currency or a “super-reserve currency.” The Russian Federation’s proposals for ways out of the ongoing financial and economic crisis and for a post-crisis order of the world financial system have been published on the Kremlin’s website. The proposals have been dispatched to the leadership of the G20 countries, the CIS and international organizations.

The Kremlin published its priorities Monday for an upcoming meeting of the G20, calling for the creation of a supranational reserve currency to be issued by international institutions as part of a reform of the global financial system.

Bella wrote:Thanks for all your additional great info! Team work is the best!

Especially when we're engaged in a fight for righteousness and against evil.

China calls for new global currency
By JOE McDONALD , 03.24.09, 08:26 PM EDT



China is calling for a new global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week's London summit on the financial crisis.

The surprise proposal by Beijing's central bank governor reflects unease about its vast holdings of U.S. government bonds and adds to Chinese pressure to overhaul a global financial system dominated by the dollar and Western governments. Both the United States and the European Union brushed off the idea.

world economic crisis shows the "inherent vulnerabilities and systemic risks in the existing international monetary system," Gov. Zhou Xiaochuan said in an essay released Monday by the bank. He recommended creating a currency made up a basket of global currencies and controlled by the International Monetary Fund and said it would help "to achieve the objective of safeguarding global economic and financial stability."

Zhou did not mention the dollar by name. But in an unusual step, the essay was published in both Chinese and English, making clear it was meant for a foreign audience.

China has long been uneasy about relying on the dollar for the bulk of its trade and to store foreign reserves. Premier Wen Jiabao publicly appealed to Washington this month to avoid any response to the crisis that might weaken the dollar and the value of Beijing's estimated $1 trillion in Treasuries and other U.S. government debt.

For decades, the dollar has been the world's most widely used currency. Many governments hold a large portion of their reserves in dollars. Crude oil and many commodities are priced in dollars. Business deals around the world are done in dollars.

But the financial crisis has highlighted how America's economic problems - and by extension the dollar - can wreak havoc on nations around the world. China is in a bind. To keep the value of its currency steady - some say undervalued - the Chinese government has to recycle its huge trade surpluses, and the biggest, most liquid option for investing them is U.S. government debt.

Jnewby wrote:What better way for the United States to pay down or reduce it's debt load! We agree to a one world currency or money policy in exchange for debt write-down. Just think, our entire economy is in the tank, anarchy in the streets and out of the thin air comes a solution to entire set of problems, a one world currency allowing us to 'start over' so to be speak with a clean slate! I could see the masses going for this hook, line and sinker.

Col. Flagg wrote:I was just going to post this story Bella... you beat me to it. Russia is also calling for the same thing... these two countries seem to have united economically and militarily... big problem for the U.S.

kate brierley wrote:These two have always been secretly united against the west, any seeming "division" was just a diversion and to lull the west into a false sense of security and we have fallen into the trap

Fed begins move that could sink dollar
Economists warn government subsidizing purchase of its debt

Posted: March 25, 2009
4:04 pm Eastern


By Jerome R. Corsi
© 2009 WorldNetDaily


NEW YORK – The Federal Reserve began today to buy longer-term U.S. Treasury securities in a move some economists believe will end up "monetizing" the dollar, a process that could inflate the amount of money in circulation and cause serious devaluation of the currency on world markets.

The move comes the same day U.S. Treasury Secretary Tim Geithner told the Council on Foreign Relations that the U.S. is "open" to a proposal by China to replace the dollar as the world's reserve currency with a "super-currency" to be created by the International Monetary Fund, or IMF.

The Federal Reserve Bank of New York released yesterday a statement specifying that the Federal Open Market Trading Desk within the Fed will purchase up to $300 billion of longer-term U.S. Treasury securities over the next six months in what amounts to the a government-subsidized purchase of U.S. government debt.

To many Americans, the move appears equivalent to a retail consumer in debt using a Master Card to pay a Visa credit card bill.

"The Fed is monetizing U.S. Treasury debt in order to debase the dollar – to create inflation – in hopes of avoiding deflation," economist John Williams, author of the Internet newsletter Shadow Government Statistics, told WND in an e-mail.

"This move also sets the precedent for the Fed acting as lender of last resort to the U.S. Treasury, if foreign and other investors in U.S. treasuries balk at upcoming auctions or look to dump existing holdings," Williams said.

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"The record federal deficits ahead mean record Treasury borrowings," he explained. "Fed monetization of the debt eventually means surging money supply growth and much higher inflation."

WND previously reported Williams' analysis of the U.S. Treasury's GAAP accounting of the federal budget deficit, which indicated the negative net worth of the U.S. government last year was $65.5 trillion in total obligations, a sum that exceeds the gross domestic product of the world.

"Because of the U.S. government's effective insolvency with $65 trillion in obligations, even before the Obama administration deficits, the higher inflation caused by the Fed buying Treasury debt has the early potential of evolving into an uncontrolled hyperinflation in which the U.S. dollar becomes totally worthless."

Williams' comments were especially pertinent after Britain announced earlier today that for the first time in almost seven years the country failed to find enough buyers of £1.75 billion ($2.55 billion) of bonds as debt investors rejected Prime Minister Gordon Brown's plan to stimulate England's economy with deficit-financed government spending, according to Bloomberg.

International economist Bob Chapman, author of the Internet newsletter International Forecaster, agrees.

"This is just the beginning," Chapman told WND in an e-mail. "The Obama administration expects to run annual deficits between $1-$2 trillion a year for the next decade, and we estimate that foreign buyers might only buy one-third to half that amount of debt. The Fed will have to monetize $3.75 trillion to $5.25 trillion over the next few years, just to buy the U.S. government debt."

The move by the Fed to buy Treasury debt comes as China proposes to replace the dollar as the world's reserve currency.

As the Financial Times in London reported today, China's central bank governor Zhou Xiaochuan has proposed to utilize Special Drawing Rights, or SDRs, issued by the IMF as a world reserve currency.

Red Alert explained in an article in this week's issue that the IMF, with the support of the United States and Russia, appears positioned to launch a one-world currency at the G-20 meeting scheduled for London April 2, with the move intended as a last ditch effort to prevent massive bank failures throughout the European Union.

The idea is for the IMF to issue at least $250 billion in Special Drawing Rights, or SDRs, to IMF member states, as a method of placing a safety net under developing countries that might otherwise have to declare bankruptcy.

The idea gained momentum last week when the Moscow Times published an article revealing that the Kremlin intended to use the G-20- meeting to push for the IMF to utilize SDRs as "a super-reserve currency widely accepted by the whole of the international community."

U.S. Treasury Secretary Tim Geithner is on the record calling for the G-20 to support "substantially increasing emergency IMF resources" by up to $500 billion to deal with the global economic crisis.

SDRs are international reserve assets calculated by the IMF in a basket of major currencies allocated to its 185 member nation-states in relation to the capital, largely in gold or widely accepted foreign currencies that the members have on deposit with the IMF.

China's proposal would require the IMF to issue SDRs to central banks of IMF member states far in excess of any gold or currency reserves the states have on deposit with the IMF.

The idea to utilize the little-understood and largely ignored SDR's in this new capacity, as a sort of an international overdraft facility made available to bankrupt or financially failing IMF member nation-states, originated with Ted Truman, formerly a senior official at both the Federal Reserve and the U.S. Treasury.

According to Reuters, Truman has returned to the U.S. Treasury for the past six weeks to explain his proposal to revitalize the IMF Special Drawing Rights facility with at least a $250 billion commitment from the Obama administration.

This year, China's holdings of U.S. Treasury securities have jumped to $739 billion, up dramatically in less than a year, from $535 billion in June 2008.

China is clearly worried that its massive holdings of U.S. dollars are at risk of devaluation because of the massive deficit financing required by the Obama administration's proposed $3.7 trillion budget, on top of the administration's deficit-financed $787 billion economic stimulus plan and $410 billion omnibus funding bill passed by Congress in the last two months.

China currently holds approximately $2 trillion in foreign exchange reserves, the most any nation has ever held in the history of the world. The reserves have been gained largely by the positive balance of trade China has enjoyed exporting cheap goods to the U.S. since 2000, when President Bill Clinton signed a landmark bill granting permanent normalized trade relations status to China to accommodate the communist nation's entrance into the World Trade Organization.

Mark wrote:Think Argentina 2001. Obama is America's Menem. He has set out to ruin us completely. What a sad state we are in. Babylon is coming down fast and furious.


http://video.google.com/videoplay?docid ... 2817317115