Tag Archive: US Dollar


Does The Dollar Have What It Takes ?

 

 

” We use the term “reserve currency” when referring to the common use of the dollar by other countries when settling their international trade accounts. For example, if Canada buys goods from China, it may pay China in US dollars rather than Canadian dollars, and vice versa. However, the foundation from which the term originated no longer exists, and today the dollar is called a “reserve currency” simply because foreign countries hold it in great quantity to facilitate trade.

The first reserve currency was the British pound sterling. Because the pound was “good as gold,” many countries found it more convenient to hold pounds rather than gold itself during the age of the gold standard. The world’s great trading nations settled their trade in gold, but they might hold pounds rather than gold, with the confidence that the Bank of England would hand over the gold at a fixed exchange rate upon presentment. Toward the end of World War II the US dollar was given this status by international treaty following the Bretton Woods Agreement. The International Monetary Fund (IMF) was formed with the express purpose of monitoring the Federal Reserve’s commitment to Bretton Woods by ensuring that the Fed did not inflate the dollar and stood ready to exchange dollars for gold at $35 per ounce. Thusly, countries had confidence that their dollars held for trading purposes were as “good as gold,” as had been the Pound Sterling at one time.

However, the Fed did not maintain its commitment to the Bretton Woods Agreement and the IMF did not attempt to force it to hold enough gold to honor all its outstanding currency in gold at $35 per ounce. The Fed was called to account in the late 1960s, first by France and then by others, until its gold reserves were so low that it had no choice but to revalue the dollar at some higher exchange rate or abrogate its responsibilities to honor dollars for gold entirely. To it everlasting shame, the US chose the latter and “went off the gold standard” in September 1971.”

 

 

 

 

 

 

 

 

 

About these ads

China and Australia Agree To Stop Using U.S Dollar

 

 

 

” Over the weekend, Australia appears to have come to the same conclusion, with the Australian reporting that the land down under is set to say goodbye to the world’s “reserve currency in its trade dealings with the world’s biggest marginal economic power, China, and will enable the direct convertibility of the Australian dollar into Chinese yuan, without US Dollar intermediation, in the process “slashing costs for thousands of business” and also confirming speculation that China is fully intent on, little by little, chipping away at the dollar’s reserve currency status until one day it no longer is.”

 

 

 

 

 

Audit the Fed: House Decisively Approves Ron Paul Bill

” Wednesday, the 25th of July, 2012 will be remembered by monetary policy conservatives
from sea to shining sea for its incredible significance. While many could disagree with Ron Paul supporters, one cannot deny their
ferocious commitment to the Constitution, personal liberty, non-intrusive foreign policy, and especially their desire to liberate the US Dollar from the control of a private banking interest, otherwise known as ‘The Fed’.

   On the 25th, Ron Paul’s ‘Audit the Fed’ bill finally passed with massive approval from the US House of Representatives with 327-98. This
is no slight win by the margin; this was an incredibly decisive victory, showing the heart of many in the US government. The representatives
of the American people want to take a look inside the shadowy rooms and dust off the books of the Federal Reserve Fractional BankingSystem. Stephen Dinan of the Washington Times reports : “

Follow

Get every new post delivered to your Inbox.

Join 5,953 other followers