Death of the Dollar

Over this last year there has been increasing talk of scrapping the US Dollar as a financial standard.

This talk has grown to the point where even “Forbes” no longer discusses: should the dollar be scrapped, but: how to do it.

Now the Bank of England is discussing the possibility as well as other formidable financial institutes.

In my opinion the dollar should never have become the standard and so is long over due from removed as the global standard.

My views are based on two points.

Firstly in 1971 when the switch was made from Gold, the United States was enjoying a boost to its economy. The Second World War afforded the US the opportunity to have its people go back to work in munitions factories. They had not enjoyed such employment levels since the great depression. In 1971 Europe was still paying America for the weaponry it had bought in order to fight Fascism and the US’s economy had this as an extra boost at that time. Later, when Europe had fulfilled its debt, the US did not cut back in its spending accordingly. It was enjoying its elevated position in the financial world and as the dollar was the standard, surely the rest of the world would eventually have to pay for their continued extravagancies. When the realizations of the fragility of the dollar came home, the elitists could not change their direction. Not only would it hurt them financially but possibly more importantly, it would completely destroy their self inflated egos. These invisible elite then fostered war in the misconception that that could again lift their financial status. This time however the United States themselves were involved in the conflicts and so the wars cost as much, if not more than they made. This has all resulted in the United States having a tremendous debt which has played a major role in damaging other countries economies.

Secondly, I do not think that the US dollar is a good financial standard due to who it belongs to. The US dollar belongs to the Federal Reserve and this is not run by the US government. The Federal Reserve is run by a group of bankers. These bankers do not have the financial interests of the planet in mind, not even the financial interests of the US, at least no more than it plays a role in their own personal financial interests. If The Euro was more stable at the moment that may have made a better choice, it at least would be dependent on the decisions of several countries, instead of the egos of a few elitists.

Even Gaddafi of Libyan fame had been trying to introduce a new standard, based on oil. Perhaps that is why the west was so interested in him losing power.

The United States will certainly venomously oppose a new standard, especially if the new standard is to be gold. A lot of the US wealth is based on the supposed assets held in the Gold Vault at Fort Knox, however the reality of the existence of this Gold has long been in doubt. It has been well over a decade since anyone has been permitted to look into the vault, even Senators have been denied access. In that period locals have reported the movement of many trucks weighted down, perhaps with gold, leaving the Fort. Some have speculated that perhaps this gold was used to pay for the Gulf War, if so, then switching back to a gold standard would not bode well for the US.

With the US so much in debt and given the current fragility of the world economies, it is surely time that a new gold standard was given serious thought.