Amero Plan Starts To Make Sense
Vol: 63 Issue: 14 Thursday, December 14, 2006
Some months back, a friend in a position to know these things advised me to get rid of any US-denominated currency holdings and convert dollars to euros in advance of a coming collapse of the US dollar.
And, based on what I’ve learned since, if I actually had surplus US-denominated currency holdings, I would take his advice.
I’ve had to sit on some of this information for some time to protect my source, but what was once a secret known only to a handful is now headline news. So, without sharing the specific details I am still sworn to keep to myself, I’d like to revisit the topic of the rumored “North American Union” project under discussion between Canada, the US and Mexico.
I’d like to amend a statement I made in OL Volume 61, Issue 6, (“Just Crazy Enough to be True”) in which I wrote: “The “Security and Prosperity Partnership of North America” has no downside for the Mexicans. But it has no up side for either the United States or Canada. At least, not the plan as it is being bandied about by its critics.”
While the proposed NAU has no upside for the US or Canada AT THE MOMENT, within the very near future, it may be America’s only defense against an economic collapse imposed by our enemies.
When the Non-Aligned Nations Movement summit in Cuba concluded in September, they issued a joint declaration, signed by 118 countries representing more than half the membership of the United Nations and fifty-one percent of the world’s population.
The summit was attended by alleged US ‘allies’ like Singapore, Pakistan and India, together with America’s growing roster of enemies, like Venezuela, Iran, Syria and North Korea.
The summit was an America-bashing free-for-all that concluded with a unanimous declaration to “change and transform the present unjust international order” imposed by the United States.
To accomplish that goal, they agreed “to coordinate, support, represent and defend the interests and priorities of its members. To do so, they agreed to strengthen concerted action, unity and solidarity between all its members.”
(I am quoting directly from the 14th Summit’s document; “Declaration on the Principles and the Role of the Non-Aligned Movement in the Present International Juncture.”)
When the summit concluded, Cuba and Venezuela hosted delegations from NAM, OPEC, Russia, China and North Korea to discuss ways to implement their fight against the ‘unjust international order.”
Major OPEC countries, Russia, China and members of NAM have already been divesting themselves of US dollar-denominated holdings. Oil-producing countries are demanding payment for oil in euros, yen or British pound sterling instead of US dollars.
The move away from US dollars has already begun to bear fruit. Since the NAM meeting, Russia and OPEC have transferred two percent of their total US dollar reserves into euros.
Two percent doesn’t sound like a lot, until you consider the fact that two percent caused the dollar to fall to a twenty-month low against the euro. Since the NAM meeting, Iran converted $4 billion from US dollars to euros; Qatar converted $3 billion.
In early 2003, as a test, OPEC cut their US dollar holdings by just $2.4 billion – at a time when international dollar reserves were above 70 percent. The dollar plunged to its lowest point ever against the euro as a result. OPEC’s successful manipulation of the US economy was noted carefully by the NAM summit.
Today, international dollar holdings are less than 65 percent and the dollar-dumping conversion to euros is double the 2003 figure. Why is that significant?
Think of a US dollar as an IOU. IOU’s are only as valuable as their guarantors. An IOU for a specific number of shares of Microsoft stock is a lot more valuable than an IOU for an equal number of shares of stock in Enron, for example.
If nobody buys dollars, whoever is holding them can’t sell them, either. They become as worthless as Enron stock. There is no way for the US to defend itself from this economic attack.
Washington can’t make other countries buy the US dollar. And if other countries won’t accept US dollars as payment for international debt, American companies can either convert their US dollars to an acceptable currency or go out of business.
The only alternative is to come up with a different currency less vulnerable to international manipulation. Enter the Amero.
Its beginning to make some sense to me, now.