Sunday, May 15, 2011

No, it's not a story from the Onion: Zimbabwe worried about U.S. dollar as reserve currency, urges move to gold-backed standard

How bad are the dollar's prospects now that President Obama has bankrupted the Treasury with "Stimulus" programs, "Cash-for-Clunkers", "Green Jobs", the auto bailout, HAMP, HEMP, and everything in between? This bad.

THE central bank says the country must consider adopting a gold-backed Zimbabwean dollar warning that the US greenback’s days as the world’s reserve currency are numbered.

Government ditched the Zimbabwe dollar in 2009 after it had been rendered worthless by record inflation levels and adopted multiple foreign currencies with the US dollar, the South African Rand and the Botswana being the most widely used.

“We need to re-think our gold-mining strategy, our gold-liberalisation and marketing strategies as a country. The world needs to and will most certainly move to a gold standard and Zimbabwe must lead the way.”

Gono said the inflationary effects of United States’ deficit financing of its budget was likely to impact other countries to leading to a resistance of the green back as a base currency.

... “The events of the 2008 Global Financial Crisis demand a new approach to self reliance and a stable mineral-backed currency and to me, Gold has proven over the years that it is a stable and most desired precious metal,” Gono said.

“Zimbabwe is sitting on trillions worth of gold-reserves and it is time we start thinking outside the box, for our survival and prosperity.”

Zimbabwe is only the latest in a series of countries, whose leaders are to the right of President Obama (like Red China, for instance), who are demanding an end to America's insane levels of deficit spending.

Given the Cloward-Piven Strategy the Democrats are implementing, said advice is certain to fall on deaf ears.

Linked by: Ace o' Spades. Thanks!

1 comment:

GW said...

I did in fact check the Onion to be sure. It's like a skunk complaining about your stink. It's like Tiger Woods criticizing your extra-marital promiscuity. It is mind numbing.