Global Money? Who Would Back It?
Posted by hanson807 on April 7, 2009
Of course many here would say the Geithner would. He said he was open to the idea. So what? That isn’t what I mean. Who would back the currency? That is the little problem with a currency. It isn’t worth what you want it to be worth but what people believe it is worth. It’s value is determined by the perceived value of the people using the currency. Today, the dollar has a perceived worth because of the standing of our country. As the perception of us goes down so does the dollar. But who would lend the global money their reputation? Who would back its worth and what would that worth be? Secondly, once we agree to back the global currency we will be forced to back the IMF and the country of its choice to protect the value and backing of the currency. You ready for that?
It seems odd that a man who is supposed to be a master of monetary policy, Geithner(why would he be given that position if he wasn’t), is unable to understand why a global money would not work. There would be nothing to back this money. When you have a US dollar, the wealth of our country and the word of our people give that money its worth. We agree by our spending habits and our use of the dollar to its worth. If you bring a US dollar from over seas to here it has the same worth as one that has never left the country. This will not be true of a global dollar unless we back the global dollar with our economy. Only when people know who backs the dollar and what it is worth will they use that dollar. Maybe that is why around the world, the global money is the US dollar.
That being said, it begs the question: Why would Geithner and Obama want to destroy our credibility and make the US dollar worthless? Why would they even suggest for a second that we use anything other than a US dollar as the trade standard? What is their global view of the United States, that they would be willing to scrap our dollar for another? It shows disrespect for our country and its worth. It shows that they have no idea what our country is worth and that they have no idea how economies work. It shows they have no admiration and show no difference to America over any other country in the world. It shows the real agenda of the Obama administration is to tear down America and become subservient to other countries.