Thursday, March 26, 2009
In a near complete reversal of his comments on Tuesday, when he told a Congressional hearing that there were no plans to move towards a global currency to supplant the dollar, Treasury Secretary Timothy Geithner sought to please the elitist CFR by assuring them that he was “open” to the notion of a new global currency system.
Geithner’s two-faced reversal is another shining example of how much contempt Obama administration front men have for the American people – assuring them one day that the dollar will remain while the next pandering to their globalist puppet masters the CFR as the move towards a global monetary union accelerates.
As we reported yesterday, Obama, Geithner and Bernanke on Tuesday publicly defended the dollar and denounced proposals by China and Russia to supplant the greenback with a new global currency, and yet the very policies of the Obama administration, the Treasury and the Federal Reserve are creating the perfect storm for the dollar’s death and its replacement with a new international reserve currency.
“Would you categorically renounce the United States moving away from the dollar and going to a global currency as suggested by China?” a lawmaker asked Treasury Secretary Geithner on Tuesday.
Geithner immediately responded, “I would.”
However, just a day later, Geithner told the CFR in a speech that he was “open” to the Chinese proposal to replace the dollar with a new international reserve system.
In response, “The dollar fell 1.3 per cent against the euro as headlines saying “Geithner open to SDR currency” flashed across traders’ screens,” reports the Financial Times.
[efoods]“I haven’t read the governor’s proposal. He’s a very thoughtful, very careful distinguished central banker. I generally find him sensible on every issue,” said Geithner, before adding, “We’re actually quite open to that suggestion – you should see it as rather evolutionary rather building on the current architecture rather than moving us to global monetary union.”
However, any move away from the dollar and towards an international reserve system, including the use of “special drawing rights” – a synthetic multinational currency maintained by the IMF, cannot be defined as anything other than a move towards a global monetary union.
The continued use of the dollar as a reserve currency, he added, “depends..on how effective we are in the United States…at getting our fiscal system back to the point where people judge it as sustainable over time.”
By that standard then, the dollar is a dead duck.
The moderator of the CFR forum later gave Geithner a chance to reverse his comments, nervously sensing that he’d let the cat out of the bag.
Geithner’s comments to the CFR are noteworthy because the CFR itself has constantly lobbied for the end of the dollar and its replacement with a new global currency as part of a wider agenda to establish global governance.
In May 2007, Benn Steil, the director of international economics at the Council on Foreign Relations wrote an article for the CFR’s influential Foreign Affairs magazine entitled The End of National Currency, in which he wrote that, “the world needs to abandon unwanted currencies, replacing them with dollars, euros, and multinational currencies as yet unborn.”
Steil wrote that “countries should abandon monetary nationalism” and “produce a new multinational currency over a comparably large and economically diversified area.” In the article, he argues that unneeded currencies should first be replaced by the dollar or the euro, but that even these currencies were just a temporary solution for an ultimate goal of a world monetary union. World Net Daily featured Steil’s comments in a piece entitled Goodbye U.S. dollar, hello global currency.
Paul Volcker, former Fed Chairman, has also called for a world monetary union, famously stating, “A global economy requires a global currency.”
Volcker’s replacement Alan Greenspan has also badmouthed the dollar’s position as the world reserve currency, arguing that it should be replaced by the euro and also encouraging Arab countries to abandon their dollar pegs, which would be disastrous for the greenback.
Groups like the Single Global Currency Union have also received support from NGO’s and other influential policymakers in the pursuit of creating a global currency as part of a wider agenda to implement “global governance”.
In addition, White House economic adviser Austan Goolsbee refused to rule out the introduction of a global currency in an interview with CNN’s Wolf Blitzer earlier this week.
Treasury Secretary Geithner has played a leading role in the wholesale looting of the greenback, announcing this week that the printing presses will be cranked to the tune of at least another $1 trillion to buy more “toxic assets” from the sagging balance sheets of failing institutions – again, all at the expense of the taxpayer who will pay for it with rampant tax hikes and runaway inflation on fuel and food later down the road.
Geithner’s double-dealings are nothing less than traitorous. While publicly downplaying the demise of the dollar and the birth of a global currency, his every action is greasing the skids for that very scenario to unfold. In the meantime, he’s careful to assure the anti-American fifth column Council on Foreign Relations, who have vehemently lobbied for a global currency, that the agenda for a world monetary union, a key cog in the pursuit of world government, is right on track.