The American Empire in a Changing World


Friday, June 22, 2012

''Imagining the Unimaginable: An End to the Dollar's Reign''

will it be SDR, a digital currency, or Gold?

From WSJ
By Michael J Casey

''For more than half a century, the dollar's reserve status has assured the U.S. of a prodigious flow of cheap financing. It has bankrolled the most powerful military machine in history and facilitated the rich material existence of its people. But the world won't forever allow it to enjoy what former French President Valerie Giscard D'Estaing described as America's "exorbitant privilege."

It behooves U.S. policy makers to start considering a multilateral alternative to the dollar. An International Monetary Fund-sponsored reserve unit is often floated as one idea--one that currently faces various obstacles but that could be resolved through a well-designed treaty.

Such proposals are hardly going to be embraced by Messrs. Obama or Romney on the campaign trail, not with an electorate that's downright allergic to internationalist ideas. But at some point they will need to be part of the national discourse. It is far better for the U.S. to plan an orderly exit from dollar dependence than to have the rest of the world force it into a disorderly one.''

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