The dying US dollar

US Fed Chairman Ben Bernanke: “Desperate times call for desperate measures.”

In November 2010, Bernanke made a little-reported-on-speech in Frankfurt. He spoke of the so-called dollar standard, saying it was “flawed” and that the trade deficit was imperiling the nation. “It would be desirable for the international community to [devise a] new international monetary system.” A Fed chairman has not admitted likewise or disparaged his own currency in such a way prior to these admissions.

The speech was a huge departure from the status quo and a sign of something new to come. It means the very way in which we trade in the context of the global economy will be redefined and the dollar likely devalued much more than it has been already. Bernanke said to bankers in a meeting in Frankfurt, Germany, that a common sense of purpose in the world was disappearing.  He referred to large fissures in ideas about economic policies abroad.

Bernanke expressed the belief that these problems made it more difficult for a solution to be found. He attacked China, blaming the country for much of the trade and economic imbalances destabilizing the current dollar-based economic order. China is manipulating the market to keep its currency undervalued, which has let to imbalances, he claimed. (Blame it all on China, eh, ole Bernanke-boy? Who’s going to buy that?)

The Fed chairman said that because China sells more to the US than the US sells to China in return, combined with China’s low-wage, low-taxation, low-regulatory, non-union environment, resultant in the fact that millions of American jobs are going abroad, China has been lifted up economically at the expense of a tremendous American decline.

The Fed’s main man concluded that this was the main reason China (and nations like her) have recovered from the recession while America is still in its throes. He said the US can no longer afford to have China drain its economy.

“As currently constituted, the international monetary system has a structural flaw,” said America’s head banker. “It lacks a mechanism, market based or otherwise, to induce needed adjustments by surplus countries, which can result in persistent imbalances.”

 “In the meantime, without such a system in place, the countries of the world must recognize their collective responsibility for bringing about the rebalancing required to preserve global economic stability and prosperity.”

In other words, the US dollar is no longer sufficient to be the world’s reserve currency without causing further imbalances which could potentially lead to economic collapse in certain regions or globally. Bernanke warned the world to prepare for actions by the Fed to pressure China into accurately valuing its currency and balancing the world economy. Perhaps China’s undervaluing of its currency is not only strategically an economic device but also a device for war on the US with an eye on dominion via a superior economy. Who needs the superior military when you control a country’s currency? Mayer Amschel  Rothschild would have agreed with that. (“Give me control of a nation’s money supply and I care not who makes its laws.”)

Perhaps the global elite realize they cannot openly impose a totalitarian government on the world via the American system but rather through a system more like China’s, so they shift the power to China and manipulate it in setting the world’s economic/political policies. Does this mark the beginning of the final shift toward one world government, or a New World Order?