There have been rumblings for quite some time about shoving the U.S. Dollar out of the way as the world currency. Having that unique position has meant that the U.S. economy can continue to operate, even with its massive debt load, when other countries economies have faltered and crashed with less severe debt issues.
A CNNMoney.com , article by Ben Rooney, outlined the International Monetary Fund’s (IMF) proposal in their article “IMF Calls for Dollar Alternative” and state that this new plan “could help stabilize the global financial system.” Ben goes on to say that “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 U.S. policy.”
In an effort to show what the U.S. is trying to do to stabilize the dollar, the article quotes the Fed Chairman “Bernanke also urged lawmakers to come up with a "credible plan" to bring down "unsustainable" federal budget deficits.
"We expect that the outlook for the U.S. fiscal position will weigh heavily on the U.S. dollar in the quarters ahead," said Sutton. In the near-term, however, she said "a strengthening growth profile" could help provide "a temporary period of dollar strength."
In February 9th article in Bloomberg, Carolyn Salas and Scott Lanman quote Mark Gertler, aaprofessor of economics at New York University ““There is this tremendous fiscal problem looming, and Congress has to do something about it.”
I’d like to remind everyone to think back just a few short months at the various countries in the European Union. When faced with their huge debt crisis and were forced to cut services, the people took to the streets protesting those cuts. So what is a country to do? It is a stand off; cuts are required to maintain fiscal health, but the masses riot when they don’t get their handouts.
Other countries went a step further (Hungary and Argentina to name only two) have absconded with its citizens retirement accounts in order to tap into a huge source of funds to right their sinking economic ships. The people had no choice. Their retirement money was gone.
It is time to wake-up America. Our way of life as we know it will not remain the same. Are you as prepared for that as you can be?