Tuesday, February 22, 2011

Worse than the dollar

NEW YORK (CNNMoney) -- The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency. The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.
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Comment: To replace the US dollar with Special Drawing Rights( SDR) as the international reserve currency is no solution at all. On the contrary: probably even more so than the US dollar, the use of SDRs would become a vehicle for global inflation. The evil spirit of inflationism is still very virulent at the IMF. To have national currencies is a curse and to have an international currency is even worse a curse. The right move is the opposite way: the denationalisation of money. What is needed are private monies that can be globally used as it is nowadays the case with the major credit cards.

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