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The IMF is Desperately Seeking a Replacement for the American Dollar: SDR’s Maybe Their Temporary Solution

The International Monetary Foundation (IMF) is growing increasing anxious over the continuous financial crisis that the US can’t seem to find a resolution too. In the beginning the IMF believed that the US had enough brilliant minds to find a workable plan to turn their debt crisis around, unfortunately, it’s becoming painfully clear that the US economy is in serious trouble.

America’s constant political bickering on National Television will ultimately be their downfall. Sam Houston the Emancipator once wrote:

“A nation divided against it self cannot stand!”

Does it feel like the US is tilted on an axel these days? Every time we take one positive step forward, we take two negative steps backwards, effectively wiping out any positive outcomes we made in the past.

Can ordinary everyday people understand or appreciates how close the US is to financial ruin? This is the first time in recent years that the House & Senate have been so ineffective for so long, making the US vulnerable in more ways than one. If you could only grasp what is being said, you would be up in arms with all your political figures. Do you consider yourself “collateral damage?”

Well, thanks to your politicians, that’s exactly what you are! If the dollar should collapse tomorrow, it is certain that they have a plan b? It’s also certain to suggest that you would be on your own, effectively, making you “collateral damage to whatever is yet to come. Do you like that position? If you answered No! Then do something about it. Call your prospective representatives’ and voice your opinion.

The IMF disclosed recently that Special Drawing Rights (SDRs) could help stabilize the global financial system – at the expense of the American dollar that is. Could this be the American dollar’s fall from grace? IMF appears adamant about replacing the American dollar and justifies its insistent of SDRs as a viable replacement that could help stabilize the global financial system and calm the other countries down.

According to CNN money, “SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.”

Constitutional Reference for Today:

“It is hardly too strong to say that the Constitution was made to guard the people against the dangers of good intentions. There are men in all ages who mean to govern well, but they mean to govern. They promise to be good masters, but they mean to be masters.” — Daniel Webster


December 21, 2011 Posted by | Business News | , , , , , , , , , | Leave a comment

The Value of the U.S. Dollar … Is it Real or Memorex?

Is America status around the world losing its power? The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency.

The IMF said “Special Drawing Rights,” or SDRs, could help stabilize the global financial system. While the SDRs are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.

The goal is to have a reserve asset for Central Banks that better reflects the global economy since the dollar is vulnerable to swings in the domestic economy and changes in the U.S. policy.

Is the world looking at the U.S. economy and its inability to stabilize itself as a turning point to look elsewhere for reserves that could compete more favorably,worldwide?

Fred Bergstein, director of the Peterson Institute for International Economics, said at a conference in Washington that IMF member nations should create $2 trillion worth of SDRs over the next few years.

Where will that leave the U.S. and its lack luster dollar? Can the U.S. dollar survive another 10 years of weak economy and high unemployment numbers? Is the Super Power losing its influence on the rest of the world because it can’t get its own house in order? Is this the beginning of the end or can the U.S. turn itself around before it is viewed around the world as inconsequential?

February 11, 2011 Posted by | Business News | , , , , , , | Leave a comment