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Daily Reckoning/James Ricards
Graphic courtesy of HowMuch.net
“The specter of a global debt crisis suggests the urgency for new liquidity sources, bigger than those that central banks can provide. The logic leads quickly to one currency for the planet. The task of re-liquefying the world will fall to the IMF because the IMF will have the only clean balance sheet left among official institutions. The IMF will rise to the occasion with a towering issuance of special drawing rights (SDRs), and this monetary operation will effectively end the dollar’s role as the leading reserve currency.”
USAGOLD note: What Ricard’s assessment might mean for Americans is difficult to determine at this stage of the game. He warns of a major dollar devaluation from 50% to 80% under those circumstances and suggests “buying gold – if you can find any.” We emphasize that we offer Mr. Ricards opinion as a matter of interest but do not necessarily agree that a one-world currency is in the offing anytime soon – even with the current crisis taken into consideration. For one thing, it would require an agreement among the primary nation-states at a time when they cannot cooperate on much of anything.