CFR: The ‘Historical Anomaly’ of the Dollar

CFR
January 18, 2008

What if the international currency of the future isn’t the dollar, but isn’t the euro either? James D. Grant, the editor of Grant’s Interest Rate Observer and an expert on financial markets, discusses the “historical anomaly” of currencies like the dollar and the euro as uncollateralized international reserve currencies—that is, ones that aren’t backed by a guarantee that they can be exchanged for something else, such as gold or silver. Grant says the dollar has benefited from a largely successful grand experiment in uncollateralized currencies, but that this dynamic is being tested by current financial trends. For instance, foreign governments with large stock piles of dollars now seek to diversify these holdings, showing that their appetite for the currency has a limit.

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  1. Doug on January 20th, 2008

    It’s time for mass mobilization of Ron Paul followers to start canvasing an d kncking on those doors for Super Tuesday. If Ron Paul doesn’t win America is screwed.

  2. gliscameria on January 20th, 2008

    I’ve read mixed reviews on the crash of the dollar. I’m on the side of the dollar tanking is definitely in the best interest of the middle class in the long term, especially moving oil from the dollar to a foriegn currency.

    Increasing the cost of imports and forcing America to produce its own goods and use its own natural resources can only be good for the American worker in the long run. Maybe making electricity and transportation more expensive would force us to actually interact with members of our community. It would be a lot easier to pay more to buy from a local grocer if we knew the family that owned it. Perhaps the police would be less on the offensive if the was a ‘community’ to protect. When things are good in this country we get greedy and out for ourselves, but history proves that when we are in a crisis, we pull together. The illusion of security and prosperity is turning us against each other. Nothing unites individual groups like a common enemy, but the crash of the dollar could clear the illusion of personal security and prosperity, and lead us to the realization that the community needs to be secure and prosperous in order for us to have either.

    I welcome the removal of our currency from foreign banks and our forces from foreign lands.

  3. Duane on January 20th, 2008

    The same banks will only take control of the new currency issued. Fight club, anyone?

  4. james on January 20th, 2008

    Notice how all currencies many currencies are currently drifting towards par with one another Can - US, Pond-Euro etc.. Its coming. It will be difficult to stop, these people admitted it will come either peacefully, or forcefully, and thanks to our deceived fighting friends, it will. Best to All.

  5. Zang on January 20th, 2008

    Ron Paul has been talking this up for years. He is the only hope for the US of A but alas once again a democratic election in the country that promotes democracy is again making a mockery of thier own system ! No wonder Iraq will never become a democracy ! Good Bye America you are the laughing stock of the world now thanks to Bush/Cheney and Co.

  6. Sovereignson on January 20th, 2008

    Who says that “WE THE PEOPLE” will, or ‘must’, accept just any old ‘new’ currency? If/when the one we’re using becomes, basically, worthless…I would certainly hope “WE THE PEOPLE” are going to be skeptical when it comes to selecting another currency issued from the same central bank!!! This is just one of the many reasons that President Paul’s message gets heard wide and far. I’m thinking that is also one of the many reasons his message is being censored so heavily…Just a couple thoughts, thanks for the time you spend reading/sharing opinions etc., we are going to take control back of our country!!! Things may get ugly in the process but I’m more optimistic now than I have ever been, thanks you all, and thank goodness for President Dr. Ron Paul…

  7. Kahoneez on January 21st, 2008

    Representing the joe-six packs of America , I must say what I do know scares the beegesuzz out of me and forgive me if I misspell beegesuzz . I read The Council on Foreign Relation web site and their article admitting ” Monetary sovereignty ” is now hindrance to economic growth . Meaning one dollar for a region , a continent or world is the optimum economic condition for the corporatism and as Rothschild has said , I care not who controls a country, if I control their finances, I control the government .
    This is the goal of these corporatist fascist , one dollar ( what ever name you want to give it), no borders , and elimination of Sovereignty. In their OWN WORDS . It’s not a secret conspiracy , it’s a FACT . But as powerful these clowns are , I ain’t having it . Wishbone Ash - ” tomorrow the plow becomes the sword ” .

  8. NeedChange on January 21st, 2008

    If Ron Paul doesn’t win, all of the Ron Paul followers (enlightened and moral people) could start our own TV network and web site, to counteract the extreme media bias.

  9. Gold Bug on January 21st, 2008

    Fiat currency, fractional reserve, uncollateralized currency, they are all a direct path to the destruction of soverign nation at the hands of the central banks.

    This guy is is delivering the same double speak gibberish that Greenspan delivered for countless year while running the FED. Just like Greenspan this guy knows that Gold is the real deal and not some old relic of the past.

    Between 1916 and 1924, gold went from 220 marks to over 8 billion in Germany. This is the result of hyperinflation, which is the direct result of governments printing money when they need it. In the course of 10 years the average German citizen was wiped out financially. Bank accounts that had 50,000 marks for retirement could not even be returned to the owner since the stamp cost more than they had in the account.

    Inflation is a hidden tax in goods that impacts every citizen using the currency. The worst hit are the poor since this drives up the goods for basic survival.

    In the not so distant future, these worthless dollars are going to be repatiated into the US in the form of purchases of real things of value. When the dollars come marching back look out, because they will flood the market and drive up the cost of real goods.

    The smart money will own gold and silver. Both are considered a store a wealth that have stood the test of time as a currency.

    The time to start protecting yourself is now. Consider the following course of action ASAP.

    1. Take your money out of the banks. FDIC will not protect you…
    2. Diversify and move your money into commodities. Gold, silver, copper, cotton, wheat, corn. Ownership of the commodities is very important. Paper is not going to cut it, when the financial crisis kicks in.
    3. Move all of your investments into cash. Anything besides the dollar is a good bet.

    I know it sounds like doom and gloom, but the time for financial crisis is close at hand.

    The US has almost 60 trillion dollars in debt and requires several billion dollars a day to service the debt. This debt is going to be monitized by printing more currency. Take a look at the M2 and MZM numbers for the real truth.

    The perfect financial storm is brewing and the world economy is going to see a big correction that will last for a decade maybe longer. When the devastation is over, citizens will not trust banks for 1-2 generations. This is how it happened in the 30’s. Check it out with your grandparents if they are still alive. Most folks over 70 don’t trust banks or put their money in them. There is a reason for this…

    Protect yourself and your family!

  10. gregory on January 22nd, 2008

    families became tribes, tribes became nations, it is only natural that nations become regional collections…. nature is already one unit, what is wrong with people doing the same? it is happening anyway, not by design or machination, but because mind is one, heart is one, consciousness is one, air is one, problems are one…

    systems change, on the way to wholeness, parts will inevitably be found to be useless…

    put your attention to being useful for your neighbor, that is the smart thing to do…

    when you say “we”, mean everybody

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