Soros Calls for World Currency
From Citizen Link:
The day after the elections, Federal Reserve Chairman Ben Bernanke authorized the printing of $600 billion to buy back U.S. debt, in order jump-start the economy.
The move – dubbed QE2, short for quantitative easing – was widely criticized by both domestic and international markets as being far too risky and untested. This was first round of quantitative easing began in December 2008.
However, President Obama publicly defended Bernanke’s move while in India.
One corporate finance and strategic consultant wrote about the QE2:
“One of the most important questions of the day concerns how the dollar will fare in the coming months and years.
“If you are working for a wage, it is essential to know whether you should save or spend that money. If you have assets to protect, where you place those monies is vitally important and could make the difference between a relatively pleasant future and a difficult one.
“If you have any interest at all in where interest rates are headed, you’ll want to understand this (issue).”
Zubi Diamond, author of “The Wizards of Wall Street,” warned that the Fed’s move is already putting Americans in serious jeopardy – as seen by the marked price increase in goods and services.
“The QE2 will increase the debt, devalue our currency and create a bigger problem that won’t solve the crisis,” Diamond said. “Eventually, America could collapse under its own weight of massive debt.”
J.D. Foster, Ph.D., the Norman B. Ture Senior Fellow in the Economics of Fiscal Policy for The Heritage Foundation, agreed:
“Quantitative easing is a largely experimental tool employed by the Federal Reserve to address a continuing sluggish economy and the renewed potential of deflation.
“That the Fed faces this prospect is final proof positive that President Barack Obama’s Keynesian stimulus policies have failed, leaving monetary policy as the sole remaining major stimulus tool. The risks associated with quantitative easing are substantial, including that it will fail, or will trigger a resurgence of inflation with or without a pickup in output growth.
THE SOROS FACTOR
The status of the U.S. dollar, which has been the world’s reserve currency, is also at risk.
Conservatives are deeply concerned that the Fed’s move also opens up the U.S. currency to a move by George Soros, the liberal hedge fund financier, who has made his wealth by betting against currencies
Soros, who has been calling for an international currency, told the Financial Times that China should lead the economic currency – and that America should not resist the weakening dollar, lower living standards and introduction to a new currency.
In an op-ed published last year, Soros wrote:
“Reorganizing the world order will need to extend beyond the financial system and involve the United Nations, especially membership of the Security Council. That process needs to be initiated by the U.S., but China and other developing countries ought to participate as equals…The system cannot survive in its present form, and the U.S. has more to lose by not being in the forefront of reforming it.”
Heritage’s Foster said that the new Congress will not have easy choices to make:
“Even if successful, the Fed will need to act decisively down the road, reversing course by pushing up short-term and long-term interest rates to prevent a bout of new asset price bubbles and inflation. These future actions could produce another recession in the face of still-high unemployment.
“Navigating these waters successfully will require extraordinary skill and luck.
“The President and Congress could greatly improve the Fed’s prospects for success by vowing not to raise taxes and instead reducing federal budget deficits by substantially reducing spending.”