Mar 23, 2009

Calls for a Global Currency

By Todd Strandberg

A few months ago, I stated that "economic hardship is the mother's milk of prophetic progression." This phrase is not something I coined for this current global economic crisis. I made that observation during the boom years of the last decade. I noticed that prophecy always unfolds faster during times of economic trouble. I thought if a financial downturn would come our way, the wheels of progress would start spinning faster.

For the past several months, we have been blessed with record levels of economic hardship and the wheels of prophetic progression have been spinning like crazy. This past week, there has been a chorus of calls for the creation of a new global currency.

Russia started the ball rolling by proposing the possibility of creating a new world reserve currency to be initiated at the April 2 G20 summit in London. The Russian proposal reads,
"We believe it is necessary to consider the IMF's role in this process and also define the possibility and the need to adopt measures allowing for Special Drawing Rights (SDRs) to become an internationally recognized super-reserve currency."
Two days later, Reuters news service reported,
"A U.N. panel will recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies."
One of the key reasons cited by the panel for making the change is the general unhappiness with the downward decline in the dollar.

The Chinese government has been very vocal in expressing its desire to move away from the dollar as a reserve currency. It holds roughly $1 trillion of U.S. Treasury and other government-backed bonds.

The world has good reason to question the long-term value of the dollar. The American government is running up huge deficits in its effort to stabilize the economy. In just the past six months, Washington has pledged $10 trillion, and in the next decade, we could see shortfalls of another $10 trillion.

The US Federal Reserve raised its eyebrows when it said it would buy almost $1.2 trillion worth of debt to help boost lending and promote economic recovery. The Fed will start buying long-term government debt and expand purchases of mortgage-related debt. The Federal Reserve is not Uncle Sam's rich brother. Since the two are one and the same, this step seems like a rather shady deal.

The Bank for International Settlements is an international organization of central banks. It issued a report last year that stated,
"Foreign investors in U.S. dollar assets have seen big losses measured in dollars, and still bigger ones measured in their own currency. While unlikely, a sudden rush for the exits cannot be ruled out completely."
There may not be a stampede right now, but there is a steady migration away from the dollar. Just this past week, the greenback suffered its worse decline in 24 years.
"What it introduces is the problem of the currency to the extent that the Fed is buying what isn't desired by foreign holders,"
...said Bill Gross of Pacific Investment Management Co.

I don't think all these central banks that hold U.S. debt have much of an option. If they all decide to move their holdings at the same time, the dollar will collapse and their reserve assets will be wiped out.

Unless the U.S. economy turns around very quickly, I find it hard not to see a dollar collapse. With the nation's debt at historic levels, the Federal Reserve and Treasury are out of bullets, and their next option is to start printing money to cover the nation's obligations.

I don't expect any major developments out of next week's G20 meeting. I think the stage has already been set for the introduction of the global financial system that will lead to the mark of the beast.

Like all major changes, the final push will likely be triggered by a new economic crisis. In my view, the fallout from the rapture is a prime candidate. When Jesus removes the Church from this world, America will instantly implode, leaving the rest of the globe in a severely shaken state.

The Bible does not directly say the Antichrist will be a financial savior, but since the Bible predicts he will largely use peaceful means to become a world dictator, money is the most logical vehicle for consolidating power. The guy who comes along with the most helpful financial ideas might be the one to watch.
"Through cunning he shall cause deceit to prosper under his rule; and he shall exalt himself in his heart, and by peace he shall destroy many. He shall even rise against the Prince of Princes; but he shall be broken without human means" (Daniel 8:23-25).

"And he causes all, the small and the great, and the rich and the poor, and the free men and slaves, to be given a mark on their right hand or on their forehead, and he provides that no one can buy or to sell, except the one who has the mark, either the name of the beast or the number of his name" (Revelation 13:16-17).

Related Links

Euro Currency of Choice as Fed Easing Devalues Dollar - Bloomberg
China Voices Support For New Global Currency To Replace Dollar -
China ready to discuss new reserve currency at G20 summit - RIA Novosti