New Currency for US, Canada, and Mexico

[jgk3]

Re: New Currency for US, Canada, and Mexico

Knowledge is power... and the common man is left in the dark on purpose.

"Knowledge is power... Guard it well." Warhammer 40k: Dawn of War

If you abide to the above, I guess you will not be a common man anymore.

[KanadaHye]

Re: New Currency for US, Canada, and Mexico

Who will buy all those treasurys?
China has misgivings about the U.S. economy and the value of the dollar.

(breakingviews.com) -- Chinese doubts about the value of U.S. Treasury bonds highlight a crucial question: Who will buy the estimated $2.7-4.2 trillion of debt expected to be issued over the next two years?

With annual foreign purchases accounting for less than a tenth of the low end of that range, and domestic investors unable to bridge the gap, the Chinese are right to worry.

Yu Yongding, former adviser to the People's Bank of China, recently demanded guarantees for the value of China's $682 billion of Treasury securities. Then Luo Ping, director of the China Banking Regulatory Commission, said that China had misgivings about the U.S. economy, but despite this it would continue to buy Treasuries.

The two statements appear designed to raise the issue non-confrontationally before new chief U.S. diplomat Hillary Clinton's visit to Beijing on February 20.

China worries about the dollar's value against other currencies, particularly the yuan. With U.S. interest rates so low, the dollar's value may slide. However, President Barack Obama has repeatedly said he wants a strong dollar, and indeed its trade-weighted value rose 13.9% between April and December 2008.

The other area of concern for China is the value of its Treasuries. Given the U.S. borrowing requirement and its lax monetary policy, T-bond yields could well rise sharply, causing a corresponding price decline.

If China's holdings match Treasuries' average 48-month duration, then a 5% rise in yields, from 1.72% on the 5-year note to 6.72%, would lose China 17.5% of its holdings' value, or $119 billion.

Foreign buyers have absorbed a little over $200 billion of Treasurys annually, a useful contribution to financing the $459 billion 2008 deficit, but only a modest help towards the $1.35 trillion minimum average deficit forecast for 2009 and 2010.

Unless that changes substantially, there will be $1 trillion annually to be raised by the Treasury from domestic sources, more than double the previous record from domestic and foreign sources together, plus whatever is needed to bail out the banks.

Even if the U.S. savings rate were to rise from zero to its long-term average of 8% of disposable personal income, that would create only an additional $830 billion of savings - not enough to fund the domestic share of the deficit. Interest rates would probably have to rise substantially to pull in more foreign investors.

Yu is right to worry
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Its nice to see that the future of the "free" world is in the hands of the Chinese... better start learning to speak Mandarin

[JohnCanadian]

Re: New Currency for US, Canada, and Mexico

New Currency to Replace US Dollar Already Printed
Pravda | Pravda.ru 1,943 views
December 3, 2008
Pictures of the new currency that will supposedly replace the US dollar have appeared on the Russian Internet. The United States is reportedly working on the new currency, the amero, which will be common for the USA, Mexico and Canada. The unstable financial situation in the world, the collapsing oil prices and the growing foreign debt of the United States may eventually crush the US dollar as the world’s major currency. Needless to say that the US authorities reject the rumors and promise to keep the dollar afloat.

Amero notes have no portraits of US presidents on them and resemble the Belarussian rubles. For example, there is an image of a deer depicted on a 50-amero note, whereas a picture of a pyramid of Mexican Indians can be seen on a 100-amero note.

The amero follows the model of the European Union and its euro. It brings up the idea that the new currency can be adopted by the USA, Canada and Mexico within the scope of the North American Union, which the Bush administration established in 2005 under the Security and Prosperity Partnership of North America (SPP).

On April 6, 2005, the US Treasury announced the formation of the Financial Services Working Group to assist in the SPP’s ‘prosperity’ plans. According to its own press release, the US Treasury’s Financial Services Working Group said it “will play a critical role in the SPP.”

Conspiracy theorists contend that the governments of the United States, Canada, and Mexico are already taking steps to implement such a currency, as part of a “North American Union (NAU)” No current members of any country’s government have officially stated a desire to create such a body, nor introduce a common currency.

The idea for a North American currency union was first proposed in 1999 by Canadian economist Herbert G. Grubel. A senior fellow of the conservative Fraser Institute think-tank, he published a book titled The Case for the Amero in September 1999, the year that the euro became a virtual currency. Another Canadian think-tank, the C.D. Howe Institute, advocates the creation of a shared currency between Canada and the United States .

After the report came out, center-left nationalist groups in Canada expressed their opposition to any currency union because they view it as an attempt by American businesses to gain access to Canada ’s extensive natural resources while dismantling the nation’s social services. The 100,000 member strong Council of Canadians, a progressive advocacy group, has declared one of its central issues to be the threat of “deep integration”.

Dr. Robert Pastor, in a 2001 book, suggested a common currency should be a foundation of “macro economic cooperation” among the three NAFTA countries. However, the 2005 Independent Task Force on North America, which he chaired, did not recommend a common currency, nor does Pastor in the section for additional and dissenting views suggest a common currency should be a goal.

Source:
http://www.wariscrime.com/2008/12/03...ready-printed/

Im sorry but Third World Countries like Russia tend to have a habit of creating big disinformation campaigns. I totally reject that article in Canada and the US we haven't heard of anything like this before this is very odd Russian media. We have not decided anything at a North American single currency like the strong and highly able Euro. Where do Russian's get these false stories from, its weird? Dont trust Russian media most of its scam and there to take the money and resources of you in trade of a bullet in your face.

[ara87]

Re: New Currency for US, Canada, and Mexico

Don't worry guys with clive owens new flick about evil, scheming, manipulative, out of control banks, the publics bound to wake up.