Council on Foreign Relations: Regional Monetary Integration
October 19th, 2007Regional Monetary Integration by Peter B. Kenen and Ellen Meade
Bonus points for the coincidence value: The biggest front for the elite in the world publishes a book about monetary integration as the U.S. Dollar collapses.
Priceless.
Via: Council on Foreign Relations:
This book surveys the prospects for regional monetary integration in various parts of the world. Beginning with a brief review of the theory of optimal currency areas, it goes on to examine the structure and functioning of the European Monetary Union, then turns to the prospects for monetary integration elsewhere in the world—North America, South America, and East Asia. Such cooperation may take the form of full-fledged monetary unions or looser forms of monetary cooperation. Regional Monetary Integration emphasizes the economic and institutional requirements for successful monetary integration, including the need for a single central bank in the case of a full-fledged monetary union and the corresponding need for multinational institutions to safeguard the bank’s independence and assure its accountability. The book concludes with a chapter on the implications of monetary integration for the United States and the U.S. dollar.
Must Read: Council on Foreign Relations on U.S. Dollar: “An Absurdity… Supported Only by Faith”
Research Credit: JG
Anyone who has not read William Engdahl’s
“A Century of War”, please do. It is the most
sober analysis of how a powerful Anglo-American
elite are financially, socially etc. destroying
and remaking the world as they desire it –
the rest of us be damned ! After reading many
books trying to make sense of it all, Engdahl’s
is the best.
The whole idea of integrating the U.S. dollar with neighboring countries’ currencies is laughably impractical and unrealistic.
At what rate would, say, pesos be redeemed for dollars? If the peso isn’t given a favorable exchange rate, the result would be severe inflation for mexicans, which would cause rioting in Mexico and endless cursing of the gringos up north. However, if the pesos were converted at a rate favorable to Mexico, we’d suffer severe inflationary effects here in the U.S. And then our public would go bonkers.
Recall that when East Germany’s marks were converted to West German marks following the reunification, the East German mark was generously fixed at 1:1 to the West German mark. The result was severe inflation that dogged the former West Germany for years, but they put up with it for the sake of easing their East German brethren’s transition to capitalism. Americans certainly wouldn’t be in any mood to undertake that kind of burden for the sake of Mexico.
Furthermore, which monetary authority would control the issuance of this new supranational currency? If its our Federal Reserve, the Mexicans certainly aren’t going to stand for a bunch of East Coast U.S. bankers making monetary policy for them.
Why does the CFR enjoy any kind of prestige at all when they come up with these kinds of shit-for-brains ideas?