Of course, as The New American magazine has documented extensively over the years, the eventual implosion of America’s fiat currency — and all that entails — has been in the works for quite some time. What is remarkable now, however, is that the prospect is being trumpeted in headlines around the world as Beijing loudly pushes for a global currency and what it calls a “new world order.”
The real culprits behind the decline of the dollar, of course, include wild debt-based currency printing by the privately owned U.S. Federal Reserve and a broader global agenda to build what both China’s dictatorship-run Xinhua “news” service and the Western establishment often refer to as a “new world order.” However, instead of pointing to the true causes of the potential looming implosion of America’s fiat currency, the party line in China and the West alike seems to be: Blame it on the U.S. Constitution, the political system created under it, and reluctance among some lawmakers to continue raising the debt limit indefinitely.
Prominent American and British media outlets have even been publishing pieces openly discussing the possible end of the dollar’s reign in recent days. “The sun is setting on dollar supremacy, and with it, American power,” declared an October 14 headline in the U.K. Telegraph, one of Britain’s most influential newspapers. Among the U.S. press, the New York Times, for example, ran a piece late last week entitled “At Risk: Currency Privilege of the Dollar.” Another NY Times article, also published on October 16 in the Economic Times, warned: “Dollar's role as world's leading reserve currency may be at risk.” CNBC, meanwhile, headlined its own article about it, “Default fears put dollar's reserve status at risk.” There were plenty of others, too.
Despite the fact that the U.S. government takes in more than enough in taxes to pay its existing bills without more borrowing — though it would certainly require cuts in spending — senior bureaucrats and officials around the world have been busy making similar remarks about the demise of the dollar. International Monetary Fund (IMF) boss Christine Lagarde, for example, said if Congress refuses to raise the already sky-high debt ceiling to allow even more borrowing, it would cause so much disruption in the world economy that “the standing of the US economy would, again, be at risk.” Swedish Finance Minister Anders Borg said: “As it is an enormous advantage to be a reserve currency it seems completely insane to even contemplate creating insecurity around that status.”
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