Wednesday, March 25, 2009

No cheerleader for propping up greenback at G20 summit

By Judi McLeod Tuesday, March 24, 2009
Is the table being set for One World Government rather than speeding the recovery of the worldwide recession at next week’s G20 London summit?

China has now joined Russia in pressing G20 members for a single world currency. The deadly duo, which has blocked all things America at the United Nations, is calling for the same thing: Dumping the US greenback as the international reserve currency for a new global system controlled by the International Monetary Fund (IMF).

So far no calls to protect the greenback by the new occupant of the Oval Office.

Days ahead of the summit, both China and Russia posted their priorities for the new global system on their official websites.

“In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.” (, March 23, 2009).

China, of course, can always justify its priority with its recently stated anxiety about U.S. loans now that the US economy seems to have reached its tipping point.

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,” (The, March 17, 2009).

The Kremlin has persistently criticized the dollar’s status as the dominant global reserve currency and has lowered its own dollar holdings in the last few years. Both President Dmitry Medvedev and Prime Minister Vladimir Putin have repeatedly called for the ruble to be used as a regional reserve currency, although the idea has received little support outside of Russia.

Both are getting a lot of help from Kazakh President Nursultan Nazarbayev, who is calling for the “acmetal” world currency and who now has the backing of the architect of the euro currency, Canadian Nobel-prize winner Professor Robert Mundell.

The easy to forget “acmetal” combines the Greek word “acme”, meaning peak or best and “capital”.

“Call it acmetal in Kazakh. Call it amero in the headed-for-economic-meltdown United States of America,” Canada Free Press wrote on March 13.

The United States is headed to the Summit without a cheerleader, evidenced by the deafening silence of President Barack Obama.

It gets worse.

In the run-up to to the “press the reset button” on U.S. rekindling ties with Russia, it is now known that Obama met secretly with Mikhail Gorbachev last week.

White House spokesman Robert Gibbs would not categorize the meeting as secret. According to him, “The president tends to roam around the larger (White) House and sometimes walks into meetings that weren’t previously on his schedule”.

That means the president just happened to walk in on Gorbachev!

Guess he learned nothing from the random late-night jaunt he made into the White House press corps when he just wanted to say “Good Evening” and went away mad because some reporters asked real questions.

According to Gibbs, Vice President Joe Biden and Gorbachev had been discussing ways of reducing their countries’ respective nuclear arsenals, an issue Obama and Medvedev would talk about when they met in London on April 2.

But Medvedev remained mum about Kremlin plans to publish its priorities calling for the creation of a supranational reserve currency as part of a radical reform of the global financial system?

The Moscow Times states that the Kremlin document also calls for national banks and international financial institutions to diversify their foreign currency reserves. It said the global financial system should be restructured to prevent future crisis and proposed holding an international conference after the G20 summit to adopt conventions on a new global financial structure.

Sounds like it came right out of the United Nations resolutions book as written by UN Poster Boy Maurice Strong with cohorts George Soros and Gorbachev to some.

Meanwhile, Canada, which hopes Obama will live up to his promise to keep trade alive with its biggest trading partner, is one of the Group of 20 industrialized and developing countries, meeting in London on April 2.

As the Hon. Perrin Beatty, President and CEO of the Canadian Chamber of Commerce said at an address at the University of Western Ontario yesterday, ...”there has been a complete failure of political will to overcome protectionist pressures and dismantle impediments to world trade.

Noting the need to remember the lessons of history, Beatty recalled how the value of global trade fell by two-thirds between 1929 and 1934.

“Memories fade, and seventy-nine years later Congress incorporated Buy America provisions in its stimulus package to target the benefits to American companies. It once again ignored warnings about the dangers, including the blunt assessment by Dallas Federal Reserve President Richard Fisher, who warned, `Protectionism is the crack cocaine of economics. It may provide a high. It’s addictive and it leads to economic death.’”

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