The United Nations Declares War On The U.S. Dollar And Publicly Calls For The Establishment Of A New World Currency

Submitted by: Francis Soyer

This is an older article but one worth reviewing as we watch the dollar index continue to drop like a stone. The cause of course another bubble created by the Federal reserve system so it create an artificial wealth effect then burst it and blow up the U.S. economy even further than it already is. Originally published in July of 2010.

The United Nations Declares War On The U.S. Dollar And Publicly Calls For The Establishment Of A New World Currency


Are you ready for a world currency? If the United Nations has anything to say about it, that is exactly what we are all going to have shoved down our throats. A new United Nations report released on Tuesday essentially declares war on the U.S. dollar and publicly calls on the nations of the world to abandon it as the global reserve currency. This new report entitled "The U.N. World Economic and Social Survey 2010" is one of the most blatant attempts yet that we have seen from a major international organization to move us in the direction of a world currency. For years it was denial after denial after denial that a global currency was being considered. Of course we knew all along by reading their policy papers that the eventual goal of the globalists was indeed to move us over to a global currency. Finally, in just the past year, the International Monetary Fund's special drawing rights (SDRs) were promoted by the G20 as "an international reserve asset" that could be used as a unit of payment for IMF loans. SDRs are currently made up of a basket of various currencies from around the world, but now there are much bigger plans for the SDRs.
According to the new U.N. report, the U.S. dollar should be abandoned in favor of a new world currency based on these SDRs....
"A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency."
So why abandon the U.S. dollar? Well, the U.N. report says that we must abandon it because it has not been "stable" enough....
"The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency."
But of course it has not been stable!
It is the very same globalists that are pushing for this new world currency that have been behind the destruction of not only the U.S. dollar but all paper currencies around the world.
In fact, there are many who are speculating that the recession that the world economy is now being "pushed" into is actually a contrived crisis which is designed to pave the way for the grand solution that the globalists have wanted all along.
So exactly what is that grand solution?
During a speech back in May, IMF chief Dominique Strauss-Kahn called for the introduction of a global currency backed by a global central bank which would act as the "lender of last resort" in the event of a severe economic crisis.
That is what the globalists have always wanted - a global currency and a global central bank that we all pay taxes to.
Right now the world is not likely to go for it, but if the upcoming recession (or depression) is deep enough, then the would might just be willing to accept a global currency and a global central bank.
You see, it is the exact same problem/reaction/solution paradigm that the globalists have used time after time after time to get their way.
Even now, globalist organizations are lining up their proposals for global taxes that they wish to impose on all of us as we recently described on one of our sister sites....
*The World Health Organization recently announced that it is ready to impose global taxes on all of us. The World Health Organization says that it needs a lot more money and that it has some creative ideas for how to get it. Two of their main ideas for "raising revenue" are a global tax on Internet use and a global tax on paying bills online. These taxes would go directly to the World Health Organization.
*The IMF is actually calling for two new global taxes. One would be an international deposit insurance tax, and the other would be a tax on the profits of financial institutions worldwide. The IMF says that the funds would be used by them to prevent another major financial crisis.
So are you ready for a world currency and a world central bank that you will pay your world taxes to?
Malaysian economist Jomo Kwame Sundaram, the U.N. assistant secretary general for economic development, admitted during a news conference that "there's going to be resistance" to the idea of a world currency.

Gold Market Commentary: Buyer Of 2,000 December 1,800 Calls Emerges

Gold Market Commentary: Buyer Of 2,000 December 1,800 Calls Emerges


Submitted by Tyler Durden on 02/01/2011 19:17 -0500
From FMX Connect
Summary

April Gold settled at $1343.00 per 100 troy ounces, a gain of $5.80 for the day, after swinging from $8.00 up to $7.00 down and back. Volatility was unchanged in the backs and lower in the fronts. Call Skew and Call Tails increased.
Active Options

J 1250 P trds 7.5 with futures 1000x

Z 1800 C trds 13.5-14 2000x

J 1500 C trd 1.70-2.20 1500x
Analysis: Skew firmed up today with calls being bought in December and August. Puts were sold in April, June, August and October. Volatility was roughly unchanged on the day but there is a definite change in tenor in risk reversal trading. This was in large part a reaction to a fund buying December 1800 Cs live, approx. 2000 times. Moving forward, nothing about today’s action gives a directional hint except that December calls are being bought once again.
Commentary: The market opened very strong and then washed out, looking like a trend day lower. The bounce through unchanged came on the back of the December call buying. Our guess is that call buyer was also positioning himself in futures. Whether he’s right or not, we don’t know. Right now we are sticking to our guns and don’t expect to see volatility pop until we settle above 1346 or below 1325.

Governor Cuomo Declares New York "Functionally Bankrupt"

Governor Cuomo Declares New York "Functionally Bankrupt" , Seeks Spending Cuts; California Governor Jerry Brown Cites Egypt, Demand Tax Hikes


Posted: 01 Feb 2011 04:52 PM PST

In an interesting compare and contrast scenario, democratic governors from the two largest states have vastly differing ideas regarding what to do about huge budget gaps. New York Governor Andrew Cuomo seeks spending cuts on schools and Medicaid, while California Governor Jerry Brown wants to ram through tax hikes.
The LA Times reports Brown cites unrest in Egypt to make his case for budget vote

Citing the pro-democracy unrest in Egypt and Tunisia, Gov. Jerry Brown called it “unconscionable” that GOP legislators are vowing to block his attempt to ask voters to extend tax hikes to balance the budget.
“When democratic ideals and calls for the right to vote are stirring the imagination of young people in Egypt and Tunisia and other parts of the world, we in California can’t say now is the time to block a vote of the people,” Brown said in his first State of the State address in nearly 30 years.
He said the budget has tough choices but that the people “have a right to vote” on the package. He challenged both parties to take the difficult votes necessary to balance the budget.

Jerry Brown Is Disingenuous
The moment a vote is put to the people, the teachers' unions, the police and fire unions, the prison unions, the transit unions, and in fact every union in the state will bombard taxpayers with promises of Armageddon if tax hikes are not approved.
Money for those ads will come from taxpayers of course.
Hopefully Republican tell Brown to go to hell, and if not, then hopefully taxpayers tell the unions to go to hell.
California does not have a revenue problem, it has a spending problem. The way you fix a spending problem is to cut spending. Until the governor is willing to do that Republican should hold their ground.
Cuomo’s Budget Cuts Spending on Schools and Medicaid
The New York Times reports Cuomo’s Budget Cuts Spending on Schools and Medicaid.

Declaring New York State “functionally bankrupt,” Gov. Andrew M. Cuomo proposed a $132.9 billion budget on Tuesday that would reduce year-to-year spending for the first time in more than a decade, sharply cut back projected spending on education and health care, and cut the budget for state agencies by more than half a billion dollars in the next fiscal year.
In a novel and potentially risky move, Mr. Cuomo’s budget defers specific Medicaid cuts to the work of a task force he appointed last month and which includes lawmakers and representatives of labor and health care interests. The task force’s recommendations are due in one month — time that may buy Mr. Cuomo protection from the withering attack advertisements that those same interests typically unleash on governors seeking Medicaid cuts.
Presenting his budget to lawmakers and other officials at a state theater in Albany, Mr. Cuomo sounded stern, even angry, about the way past governors and lawmakers have built inexorable spending growth into future budgets, even as he urged the Legislature to join him in reigning in government expenditures.
He decried current budgeting practices as a “special interest protection program” that led to too much spending with too little accountability for performance, and called for a return to what he described as “reality-based” budgeting.
“It’s not about the industry of government,” Mr. Cuomo said. “It’s not about the bureaucracy of programs. Government is there to serve people.”
like Mr. Paterson, Mr. Cuomo is proposing to eliminate the annual cash subsidy that New York City receives through a state program, setting up a battle with Mayor Michael R. Bloomberg.
Offering a further glimpse of how he will seek to negotiate with the Legislature and outmaneuver unions and other special interests that dominate the budget process in Albany, Mr. Cuomo will seek agreement with lawmakers to reduce spending on adult and juvenile prisons.
But his proposal would defer decisions on which of the state’s dozens of adult prison facilities to close to a task force of lawmakers and state prison officials. Should the task force fail to agree on prison closings, under Mr. Cuomo’s proposal, the commissioner of the corrections department would be empowered to make the decisions unilaterally.
Similarly, the budget proposal would empower the executive branch to unilaterally make any Medicaid cuts that Mr. Cuomo’s task force is unable to agree on its own.
Mr. Cuomo is seeking to reduce the budget for state operations, among the larger pots of spending, by 10 percent, one of the steepest proportional reductions to any area of the budget. About $100 million in savings would be sought through agency mergers, but the bulk of the amount, $450 million, is intended to come through what Mr. Cuomo’s budget proposal terms a “Labor Management Partnership.”
Mr. Cuomo’s budget also offers a more expansive glimpse of his plans to redesign New York’s sprawling state bureaucracy, with plans to merge 11 existing agencies or authorities into just four entities. Mr. Cuomo will seek to consolidate the department of corrections, one of New York’s largest agencies, with the state division of parole, and to move several agencies that handle programs for domestic violence and crime victims into the state division of criminal justice services.
Mr. Cuomo also proposes to reduce projected spending on the State University of New York, the City University of New York and their community colleges by about 10 percent, which would save more than $200 million. The budget saves another $135 million by eliminating subsidies for SUNY’s teaching hospitals at Brooklyn, Stony Brook and Syracuse.

Band-Aid Approach
I applaud all of those moves, but most are nothing but Band-Aids. Cuomo needs to get at the root of the problem. To do that he needs to end collective bargaining of public unions, make New York a right to work state, kill prevailing wage laws, and make sure all new state employees do not get defined benefit plans, and go to merit pay for teachers.
Those moves would not only help the state, but would ease the pain of cuts on New York City. Moreover, if he did all that, I bet Republicans would agree to some tax hikes. The same applies to California Governor Brown.
Governor Cuomo is better than expected (but still off the mark). Meanwhile, Governor Moonbeam remains in outer space in regards to addressing California's problems.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com