The U.S. currency has had its days as provost of international transactions and how to maintain currency reserves of countries. There is growing awareness that the world’s central banks are directly propping up the criminal U.S. financial system to transfer their reserves in exchange for Treasury bonds and other notes. The transfer of reserves relieves fiscal deficit and finances eternal wars always being undertaken by the military-industrial complex housed in the Pentagon. The Project of the Sonoma State University of California nominated this topic for probable inclusion in the annual ranking of the 25 most censored news items in 2009/2010, to be published in the book Censored 2011, like every year by the publishing house Seven Stories of New York.
The big global media has not reported that there are several concrete initiatives to replace the U.S. dollar as world currency. Agreements have been adopted to bury the greenback-not reported by the mainstream press, in the Conference on Trade and Development of the UN (UNTACDA, for its acronym in English). On September 9, ALBA countries in Latin America, six nations in Asia, including Russia, and Iran also wants to get rid of the dollar, while the same urgency has been raised in other international forums.
In September 2009, the Conference UNTACDA proposed creating a new currency to replace the dollar as a reserve and redesign the “Bretton Woods style” of the current international monetary system. This initiative for a new currency would lead to the biggest monetary review since the Second World War. The resort of Bretton Woods in New Hampshire, served as head office to the Monetary and Financial Conference of the United Nations in 1944 and established the rules on trade and financial relations of the two industrialized countries in the postwar world and they decided to create the World Bank and International Monetary Fund and use the dollar as international currency.
Nations around the world have now reached their limit on subsidizing U.S. military adventures. The June 2009 meeting in Yekaterinburg, Russia, with the presence of world leaders such as Chinese President Hu Jintao, Russia’s Dmitri Medvedev and other top officials of the six-nation Shanghai Cooperation Organization (China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan), also adopted the first formal measure of major U.S. trading partners to replace the dollar as world reserve currency.
If successful, the value of the dollar will plummet dramatically and the cost of imports such as oil will skyrocket suddenly and the U.S. empire cannot continue its wars. In addition, China has been negotiating deals with Brazil and Malaysia to assess conducting trade in the Chinese yuan, while Russia announced it will begin trading in rubles and local currencies. Moreover, Russia, India, Pakistan and Iran are forming a military financial area to try to force the U.S. out of Eurasia.
Nine Latin American countries also agreed on the creation of a regional currency, the sucre, outpacing the use of U.S. dollar. The nine members of ALBA (Bolivarian Alternative for the Peoples of Our America), a leftist bloc designed by Venezuelan President Hugo Chavez at a summit meeting held in October 2009 in Bolivia, is committed to further progress in the use of the sucre, the new unit of currency to replace the U.S. dollar as its currency in intraregional trade. The new medium of non-cash payment called Sucre, an acronym for Unified Regional Compensation Payments, started out in early 2010 as the accounting standard (not in paper money) among the member states of ALBA (Venezuela, Bolivia, Cuba, Ecuador, Nicaragua, Honduras, Dominican Republic, St. Vincent / Antigua and Barbuda).
The block also called to replace the International Center for Resolution of Investment Disputes (ICSID, its acronym in English) of the World Bank, in which arbitrations on misunderstandings or disagreements in international contracts have involved ALBA member nations in a morass of conflicts with some large transnational oil companies. Most ALBA members withdrew from the organization, and Ecuador also announced that they will leave the group.
Criminal Financial System
Among the few media who reported this, was the story in the British outletwww.Telegraph.co.uk entitled “The UN wants a new global currency to replace the dollar.” The economics editor Edmund Conway wrote on September 7, 2009 that the UNCTAD proposal was “the greatest revision of the world monetary system since the Second World War,” adding that “this is the first time a major multinational institution has postulated such a suggestion.” He said that “a number of countries, including China and Russia, suggested replacing the dollar as reserve currency of the world in a radical report of the UN Conference on Trade and Development.” The UN report said: “The foreign exchange system and regulation of capital tied to the global economy is not working properly, and is largely responsible for the financial and economic crisis.”
“The replacement of the dollar by an artificial currency would solve some of the problems associated with the potential of countries to wipe out large deficits and would help stability,” said Detlef Kotte, one of the authors of the report. The proposals included in the UNCTAD annual report contain the most radical suggestions ever made for the network to redesign the global monetary system.
“The U.S. empire is ruined,” wrote the columnist Chris Hedges on June 15, 2009 in www.TruthDig.com and www.CommomDreams.Org. Commenting on the meeting in Yekaterinburg (formerly Sverdlovsk, Russia), the Chinese President Hu Jintao, Russian President Medvedev and other top officials of the six-nation Shanghai Cooperation Organization, Hedges said, “Barack Obama and the Wall Street criminal class, aided by corporate media, continues peddling inane gossip and garbage masquerading as news, while we endure the biggest economic crisis in our history. They may have cheated us, but the rest of the world knows that we are ruined.
These nations are cursed if they continue to support keeping afloat an inflated U.S. dollar and sustaining massive federal budget deficits, swollen to over 2 trillion dollars, which finances U.S. imperial expansion in Eurasia and our system of casino capitalism . We are grabbed by the throat. It is at the point of being too tight.”
The “substitution of the dollar for a conventional currency would solve some of the problems associated with the potential to wipe countries’ large deficits and help stability,” Kotte said. Although many economists have pointed out that the economic crisis was due to malfunction of the monetary system established in the agreements at Bretton Woods, so far no major institution, including the G20, has raised an alternative.
Note: This censored news arose frpm the investigation of the students Nicole Fletcher, Sonoma State University; Krystal Alexander, the Indian River State College, and Bridgette Grillo, the Diablo Valley College. It was validated by academics Ronald Lopez, Sonoma State University, Elliot D. Cohen, Indian River State College, and Mickey Huff, blo Day Valley College.
Sources of the Censored Project:
– “The American Empire Is Bankrupt” Chris Hedges, TruthDig.com, June 15, 2009http://www.truthdig.com/report/item/20090614_the_american_empire_is_bankrupt/ orhttp://www.commondreams.org/view/2009/ 06/15-0
– “De-Dollarization: Dismantling America’s Military Empire Financial,” The Turning Point Yekaterinburg “Prof. Michael Hudson, Global Research, June 13, 2009 http://www.globalresearch.ca/index.php?context=va&aid=13969
– “Iran and Russia nip at U.S. global dominance” Fred Weir, The Christian Science Monitor, June 16, 2009http://www.csmonitor.com/2009/0616/p06s12-woeu.html
-Telegraph Media Group
Tackle-Latin American Leftists with New Currency Dollar Source: Agence France-Presse, October 17, 2009 URL:http://www.commondreams.org/headline/2009/10/17-3
Ernesto Carmona, Chilean journalist and writer, board member of the Journalists Association and the International Jury of Project Censored.
Translated from the Spanish version by: Lisa KARPOVA (pravda.ru)