An article in The Financial Times reports that Brazil and China are working toward an agreement that will enable the use of their own currencies in trade transactions rather than the US dollar. This will be a major step that will encourage other countries to do likewise, thus reducing the longstanding dependence upon the US dollar as the international payment medium. As foreign dollar holdings stop increasing or are reduced, the US government will have a harder time selling its bonds. The buyer of last resort, of course is the Federal Reserve. As the Fed and the banking system monetize ever greater amounts of US government debt, the purchasing power of the dollar will drop precipitously.
The only thing that has supported the value of the dollar thus far has been the “great recession” in which the business sector is starved for credit and ordinary people are starved for cash; that and the abiding myth that the dollar will always be “as good as gold.” — t.h.g.
On May 4 I was interviewed by Tim Lynch of New Zealand’s GreenPlanetFM radio program. You can lsiten to it here.
Deirdre Kent and conference organizer Laurence Boomert have provided a link to audio records of the New Zealand Community Currencies Conference 2009 that was held in Whanganui April 17-19th.
Here is their note:
Here is a link to the audio recording of our keynote speaker Thomas Greco at the conference.
Click on the link in the yellow box then scroll to the bottom of the new page and click on the red download arrow – enjoy
Audio recordings of other speakers at the conference will also soon be available and a bit later we will have the videos that go with the talks.
The written resource document that records the different models of currency brought forward at the conference will soon be available.
I’ve also now posted the photos to my photo gallery. — t.h.g.