Council on Foreign Relations Pushes for Three Regional Currencies in the World

Create a global lending institution that weakens the economy of wealthy nations, enslaves Third World countries, and prevents those nations from rising out of their impoverished conditions. Blame that institution for creating a plethora of global financial crises over the past fifty years. Then offer a solution of consolidating all of the economies of the world into three different regions, each of which will use one type of currency. Benn Steil, the CFR's Director of International Economics, argues that the International Monetary Fund's (IMF) practice of "lending" money to poor countries causes them to give up a portion of their sovereignty. The IMF is funded by the wealthy nations of the world, the U.S., Britain and Japan, to name a few. However, since the dollar is the currency of choice for much of the world, the lion's share of funds in the IMF and World Bank are made up of U.S. dollars. The United States, having the fortunate position of possessing the money that the rest of the world has faith in, will then sell government bonds to foreign governments that have just borrowed from the IMF to offset the deficit spending (such as funding the IMF) that Congress approves. To use an analogy, it is like buying a suit from a tailor and then receiving that same money back the next day in the form of a loan. Because of this process, he rightly calls the dollar an absurdity supported only by blind (or stupid) faith in man's wisdom. The logical answer from the perspective of a free marketer is for the U.S. to return to the gold standard, which is what gave the dollar a worldwide prominence in the first place. Not according to Steil, who says: "A revived gold standard is out of the question. In the nineteenth century, governments spent less than ten percent of national income in a given year. Today, they routinely spend half or more, and so they would never subordinate spending to the stringent requirements of sustaining a commodity-based monetary system."