United Nations Says Ditch the Dollar

The dollar is unreliable and needs to be replaced as the world’s reserve currency, the United Nations Department of Economic and Social Affairs said in a report released June 29.

“The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency,” the report, which was supported by UN Secretary General Ban Ki-moon, said.

Instead, the UN wants to replace the dollar with a new global currency managed by the International Monetary Fund. The new currency, called sdrs, or special drawing rights, would be backed by a basket of various currencies and could be manipulated by officials to maintain stability.

According to the UN, this new international currency would help sustain global trade and financial systems and help bring less-developed countries into the world economy.

However, any move toward abandoning the dollar as the world’s reserve currency could have disastrous consequences for the U.S. economy. Reserve currency status means there is huge, virtually locked-in demand for dollars. This has allowed Americans to run huge deficits and debts, while not having to deal with the stifling consequences of rising interest rates. It also allows the Federal Reserve to print money to stimulate the economy, pay the bills, and stealthily inflate away the national debt.

If the dollar were to lose its reserve currency status, it would be a rude awakening to a nation suddenly forced to deal with decades of overspending.

There is a global trend of nations seeking ways to abandon the dollar reserve system. Germany, France, Russia, Brazil, the UN, and the International Monetary Fund have all expressed misgivings—if not outright criticism—concerning the dollar system and the unfair advantages it gives America.

The problem facing these nations is, what is the alternative?

According to the Bible, two gigantic markets will rule the post-dollar world: one in Europe, focused on Germany, and one in Asia, focused on China and Japan. These two markets will grow to dominate trade, and will do so at America’s expense.

The recent UN report is the latest manifestation of this growing anti-U.S. sentiment.

For more on this trend, read “World Prepares to Dump the Dollar.”