New world economic order ahead?
World leaders hail the triumph of Barack Obama as the start of a "new era" ... a "new deal"
Nov 2008

Soon it will become your responsibility to "share the wealth", not by "old" free market concepts like private charity, but by federal government mandates negotiated by the charismatic, F.D.R.-like, president-elect Obama.

Obama was not invited to the summit of the G-20 leaders on November 15th in Washington to discuss the causes of the credit crisis and start developing principles of reform for financial institutions.

"This crisis is global in reach -- and addressing it will require agreeing on common principles to reform regulators which is essential to preventing another disaster," President Bush recently announced.

"This global credit meltdown is pushing the U.S. toward a 'New Financial World Order' which seeks to replace free market principles with socialistic principles," says Swiss America CEO Craig R. Smith.

"How can all nations agree on 'common principles to reform' given the diversity of worldviews represented? Could the coming 'wealth redistribution' include government confiscation of private assets, including gold bullion, like FDR did during the Great Depression?" asks Mr. Smith.

Unlikely, but you can count on the value of the U.S. dollar declining further as the Fed together with central bankers worldwide cut interest rates and flood the markets with liquidity trying to head off a global recession/depression. Will it work? No one knows.

France’s president Nicholas Sarkozy is organizing a "New World Financial Order" based on something other than the dollar. A tri-polar global currency system is developing between Asia, Europe and the U.S.

"Asian and European countries should banish the U.S. dollar from their direct trade relations, relying only on their own currencies, said a front-page commentary in the People's Daily. A recent meeting between Asian and European leaders in Beijing presents the perfect opportunity to begin building a New International Financial Order," reports Reuters.

"Perhaps the biggest delusion of the financial world now is that the dollar... and dollar-based Treasury obligations... are a safe refuge. In an emergency, the government can always just print up the money. But that’s the problem. An emergency is coming," reports Bill Bonner at Daily Reckoning.

North American Union "amero" currency?

The idea of a North American Union connecting Canada, the United States and Mexico into a super-regional political/economic entity sparked a firestorm of public concern after the dollar fell 10% below the Canada's dollar last year.

The latest concern about a proposed new North American Union currency (the "amero") has been prompted by expectations of another worldwide dollar sell-off in 2009 as the U.S. government floods the markets with trillions in fresh bailouts.

While the mass media has ignored, laughed-off, or even ridiculed the negative impact of the dollar’s slide over the last seven years, Americans are now growing concerned about the dollar's future. Americans remember the Carter years well as inflation and interest rates hit double digits as oil prices skyrocketed.

"A North American Union, as proposed by The Security and Prosperity Partnership, is not just unconstitutional, but an act of treason committed at the highest levels, one that must be stopped before the U.S.A., as a free and sovereign nation fades into history," says Dr. Jerome Corsi.

Americans need a personal 'gold standard'

What might a further national currency debasement do to your net worth, already shrinking due to declining home prices, a stock market meltdown and a rising cost of living?

The root problem with modern money is that it does not constitute a store of value. The only two assets that are real money, and cannot fail during a credit crisis, are gold and silver. All fiat currencies eventually collapse because they lack a store of value.

A recent Merrill Lynch note to clients said: "We’re in the beginnings of a global readjustment that will end the dollar’s dominance as the 'gold standard' currency for the world’s economies. The dollar is likely entering a long, slow decline - followed by a crash."

Craig R. Smith explains the falling dollar: "One major reason for the dollars systematic decline is our snowballing debts and deficits. Today the U.S. borrows $2.5b a day from other nations! Devaluing the dollar is one way the financial markets correct our debt addition. Americans who put themselves on a 'personal gold standard' will be safe amid the storm."