Is A New World Order Currency On The Horizon?

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Do We Need a New World Currency?

For years, people have been calling for the world to forgive third world debt. The amount of effort that poverty stricken countries make just to pay interest on their debt while people are starving and living in misery is shameful. Corrupt governments stole big portions of what was borrowed instead of investing it in infrastructure and now these countries must spend generations of labor to pay off the debt instead of growing and developing.

Imagine if Washington did for the third world what it did for Wall Street, it would actually seem very humane. Hopefully one day our government we will care about people’s suffering more than it cares about investment bankers, but that day is probably a long way off. Look how the harbinger of hope and change, Mr. Obama, has been enveloped in Wall Street’s orgy of greed. However, there is another debt bomb ticking away and it’s ready to go off in the first world.

By 2012, total debt of the US Federal Government will finally reach one year of GDP, about 15 trillion dollars. Japan is well beyond that ratio already and European countries like Greece, Spain, Ireland and Iceland are close to financial chaos due to overwhelming amounts of debt. I lived in Argentina in 2001, before Argentina defaulted on its debt. It was so obvious that there was no alternative but to pull the plug, but much suffering had to be endured until the obvious was recognized and the default finally occurred.

Total world wealth is somewhere around $160 trillion, and total world debt, public and private, is about the same amount, $150 trillion. Current world GDP is about $60 trillion. More and more, the debt is beginning to drag us down into a dark whole of endless interest payments and more new debt to service old debt.

There are two options. Spend a decade in an austerity program, sacrificing development to pay off most of the debt, while at the same time making big structural changes to our financial system in order to stop the easy flow of credit to people, governments and business. This is a very sound, honest thing to do; hence, it will never happen. No person, government or corporation is willing to succumb to that kind of pain, and for good reason, do we really need to?

One day in the near future, we will wake to our coffee and media outlets and get a very strange surprise. We will have a new world reserve currency, made up of a basket of currencies and commodities, say oil, gold, the Dollar, the Euro, the Yen etc… This must be done completely in secret, by the world financial elites, or massive speculation beforehand would wreak havoc on financial markets. Some very interesting deals will be struck, fortunes made and lost, but what is certain is that the incredible amounts of dollar denominated debt that China, Japan, and Europe hold will be converted into the new currency. No longer will Barack Obama’s finger on the printers start button be giving the Chinese, Japanese, and Europeans fits.


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[link to hawaiinewsdaily.com]

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Could Money Printing in the U.S. Speed the Rise of the Chinese Currency

Could Money Printing in the U.S. Speed the Rise of the Chinese Currency?

A major tectonic shift in global finance and economics is happening as we speak and it could affect geopolitics and global finance for decades to come. That shift is the rise of the Redback, or the renminbi. The Chinese currency is being powered by massive government and trade surpluses coming out of China as well as a high growth economy.

On the other side of the hill is the U.S. dollar being dragged down by massive U.S. government deficits, endless trade deficits, and rapid dollar debasement through the Federal Reserve printing press.

The Chinese currency, the renminbi or what some people call the “Redback” is rapidly becoming a new global reserve currency and in the future could replace the Dollars position as the preeminent global reserve currency faster than we can imagine.

Foreign multinationals in Europe are now holding large cash positions offshore in renminbi. Central Banks around the world such as Malaysia have ordered renminbi to hold as a reserve currency.

more [link to www.financialsense.com]