Beware of the Late Reserve Currency

You honestly think the Fed is wising up? They are not because they don't have to. Obviously there is a great risk to the stability of the US Dollar if that corporation "who" goes by the name of Federal Express Reserve continues to turn its back on the greenback and sacrifices it as the first choice by fucking around with rates to mask problems. Our rates are really only decided based on bullshit economic data that is contained in fishy reports -- they say one thing -- "Fight inflation ... protecting the value of the US currency" -- but do the exact opposite: Fight deflation by killing the buck ...

"I do believe the days of the US Dollar being the reserve currency of the world are coming to an end. However, that doesn’t mean that it should be thrown away (in favor of the Amero). Hopefully, we can see some of our American purchasing power return and at least a HINT of free markets. If not, there is always Canada!" ~ForexHound.com

The Fed is not about the common man, not about real value, and not about to fight inflation ... because their real enemy is DEFLATION... till the endgame? (After the endgame is before the endgame!)

Stockhouse members discussed some of the finer points of currency valuations. "Beware the Amero."

Interesting comments:

"I'll start with the obvious: USD is toast. I just hope that the Amero doesn't come to fruition. I would leave Canada in that case. [...] All money outside of gold and silver is valued by decree. They're FIAT currencies. Ultimately their worth, defined by confidence to hold your assets denominated in that currency, is backed up by the willingness and the capacity of the government to ensure re-payment upon demand, or upon agreed terms."

BTW, this chart illustrates real power perfectly. Any club that can get away with this ... shouldn't be fuck with -- funny when you hear fellow serfs or rappers talk about being untouchable. This is the mothership!

Amero 101: Benefits and Drawbacks

There’s still room for speculation that an Amero currency could be in the works -- benefits and drawbacks:

Save on currency transactions: Dr. Herbert Grubel estimates that Canada alone would save $3 billion from the Amero’s implementation.

Printing inflation would be more difficult: There is large criticism of the Federal Reserve’s practice of printing dollars to pay debts and obligations, which causes the dollar to lose value. With a monetary union, the US would, one assumes, be held accountable by Mexico and Canada, and less free to continue this sort of practice.

Transition risks: The worldwide transition from the dollar to Amero could risk the dollar/Amero’s status as a global currency, which may cause foreign investors to shift to the more established euro and yen.

Same problems: The amero largely does not address problems that currently exist with the dollar, like trade deficits, government debt, and status as a fiat currency.

Shared seignorage: The US currently collects net revenue from issuing the dollar, but with the Amero, any revenues would likely be shared with Canada and Mexico.

Dollar fall: The Canadian and US dollars are worth considerably more than Mexico’s troubled peso. A merging of the three currencies could result in a fall of both dollars to meet the peso.

(Re-)read the whole article at CurrencyTrading.net

The strong Euro/Amero zone

The dollar's slide seems irreversible, and beyond a not-too-far point, numerous other currencies emerge as better-yielding zones to park oil and other global revenues. While this is not the place to debunk the already weak myth of a global clash of civilizations, the long term emergence of alternative economic zones is likely. One could be the Euro/Amero area, initially separated, but merging into a larger Western macro-economic zone. Another might evolve out of the Shanghai Cooperative Organization, with the rouble and yuan embracing each other, after a similar phase of antagonism. A third, as-yet unknown currency bloc could emerge out of the Islamic oil crescent, with the facade of religion and blending with the SCO to be at least as strong as the Euro/Amero zone.

Source: Desicritics.org