On November 17th 2006 we posted a story from IndiaDaily that reported, "The biggest bubble of all - derivatives Trading Soars to $370 Trillion – it will be the root cause for global depression".
Today (12/01/2006) Bill Bonner, of DailyReckoning.com, reported "The derivatives market has reached a face value of $480 trillion...30 times the size of the U.S. economy...and 12 times the size of the entire world economy"
November 28th 2006 - "In an interview with CNBC, a vice president for a prominent London investment firm yesterday urged a move away from the dollar to the "amero," a coming North American currency" The report about a CNBC interview was reported on WorldNetDaily so I expect a bit of 'Faux News' spin. If I can't find the same story anywhere else that doesn't refer right back to the WorldNetDaily version then I suspect that something is being feed into "the Matrix" for public mind consumption.
WorldNetDaily's 'Amero Currency Warning' July 6th, 2006 was the first hit when I Google'd "WorldNetDaily Amero".
Search "Amero" and "The Plan to Replace the Dollar With the 'Amero'" by Jerome R. Corsi comes up on another online "Conservative" site (Human Events) at http://www.humanevents.com/article.php?id=15017.
Jerome Corsi is the author of several books, including "Unfit for Command: Swift Boat Veterans Speak Out Against John Kerry" and most recently, "Minutemen: The Battle to Secure America's Borders." He will soon author a book on the Security and Prosperity Partnership of North America and the prospect of the forthcoming North American Union. So anything written by Mr. Corsi I can expect to be "flavored" rhetoric of the right. Not that this disqualifies anything the right has to say (Pat Buchanan hits the nail on the head often) but I do find that the seeding of fear in the minds of their audience is a common tactic to get attention and to motivate followers to,... follow. So I need to look deeper into where the idea of a North American Union common Currency came from. I have no doubt that the big bad guys that see the world as theirs to manipulate have a global currency on their wish list, but the campaign for a North American Currency had to have a start.
The Fraiser Institue is said to be a "libertarian" think tank in Canada. They seem to be pretty libertarian on many issues. So I called Dr. Herbert G. Grubel, Senior Fellow of The Fraser Institute that wrote the story, and left a message asking that he call me to discuss the issue. I am interested to see if his opinion has altered since he wrote this in September of 1999
The United States is the world's largest and most prosperous economy. Americans are proud of these achievements and the US dollar is an important political and nationalistic symbol. Why would Americans ever want to join a North American Monetary Union, lose the uniqueness of their currency, and give foreigners a seat on the Federal Reserve where they would be able to influence monetary policy? Why would they want to sign an agreement that limits their ability to incur government deficits since no such policy has been enacted domestically? What interest groups in the United States would support such a policy initiative.30
It is tempting to suggest for the reasons inherent in the preceding questions that the government of the United States will never agree to the creation of a North American Monetary Union. However, I am more optimistic for a number of reasons.
History of international agreements and the American national interest
First, if anyone had asked analogous questions 60 years ago about the prospect of the United States becoming a member of the World Trade Organization (formerly the General Agreement on Tarifs and Trade), the International Monetary Fund, the World Bank and, more recently, the North American Free Trade Agreement, most people would have answered much as they now do when it is a question of the proposed agreement on a North American Monetary Union.
Yet, the United States did become a member of all of these organizations and did surrender a significant degree of national sovereignty. There are escape clauses in all of these treaties that can be invoked if the national interest is threatened seriously. Similar escape clauses are certain to be in the proposed monetary agreement. There is still much opposition to these organizations in the United States and it receives much media attention. However, political movements like those headed by Pat Buchanan and Ross Perot that make withdrawal from such organizations a major plank in their platforms have not had significant electoral successes.
I believe that the United States became a member and accepted the accompanying loss of national sovereignty because the benefits from doing so outweigh the costs. Increased trade, more stable economies in the rest of the world, and continuous forums for the exchange of views have increased the prosperity of Americans. The United States may be large but the rest of the world is even larger and American relationships with other countries matter to economic growth and national security. By extension, the proposed monetary agreement will benefit the United States since it is expected to improve the size and stability of the economies of Canada and Mexico; American trade and investment will grow correspondingly.
Finally, the preceding analysis of the merit of monetary union implies that some real economic benefits will also accrue directly to the United States just as they will to Canada and Mexico. These benefits to the United States will be much smaller in relation to national income than the benefits to the other two countries. But, there will be significant savings in the cost of currency exchange and protection against exchange-rate uncertainty. The increased size of the market will make for more efficient and deeper capital markets. American firms will have even more incentives and opportunity to produce and market their goods and services in the entire continent. At the same time, Canadian and Mexican firms will invest in the United States and bring consumers better and lower-priced goods and services. These and other gains will grow through time as the economies of Canada and Mexico grow absolutely and probably also relative to the American economy.