Last week, Rep. Michele Bachmann (R-Looneyville) convinced herself that U.S. currency is under attack (it isn't) and the threat of a "global currency" is real (it isn't). What sparked the paranoia was a Chinese proposal to replace the dollar as the world's reserve currency, which of course has nothing to do with Bachmann's bizarre ideas.I've written about this at length, (see, for example, "Leftists Launch "Currency Trutherism" Against Bachmann").
Actually, Ms. Bachmann didn't convince herself of anything. Treasury Secretary Timothy Geithner's suggested last week that he was open to the displacement of the U.S. dollar as the world's reserve currency. Indeed, Geithner specifically claimed that the world economy needed a "new global supercurrency" as a unit of international commerce and exchange. Check the links, folks. Benen's just smearing Representative Bachmann, nothing less. And for him to say that the dollar isn't under attack is completely ignorant. While we're not seeing market-crashing speculation, over the last week international investors have fled the dollar for the safety of gold on the the New York Mercantile Exchange. And as Martin Hutchinson argues at the Asia Times, there is "no reason to believe that the dollar represents a sound store of value, the principal function of a reserve currency."
So let's be clear about all of this: (1) No, it is not likely that the U.S. dollar will be replaced anytime soon, for the main reason that the U.S. economy, for all it's problems, remains the world's largest, and will continue to be the motor for growth and development worldwide for decades to come; yet (2), the Obama administration's monetary incompetence, combined with Chinese financial assertiveness, means that Representative Bachmann's demands for policy clarification from Secretary Geithner are perfectly reasonable. The U.S. dollar cannot remain the world's reserve currency forever, and Geithner's gaffe certainly reflects a subconsciousness knowledge of the dynamics of currency power in international relations.
Most people are not paying attention to this issue simply because international monetary policy is a complex areas of public affairs (see, "Americans VERY confused about Economics and Personal Finance"). And as Michele Bachmann's not a household name, the netroots rodents of the radical left get free rein to slur her reputation. Then, of course, a lie, told often enough, becomes accepted as truth (a variant of astroturfing, so common on the left).
This is why it's important - now more than ever - to smackdown these idiots when and where they cut loose with their insane leftist trollery.
P.S.: Benen's post also makes a lame attempt to delegitimize Scott Rasmussen's polling organization, and no wonder, since on this issue, most Americans agree with Representative Bachmann: "88% Say It’s Important to Keep The Dollar as America’s Currency." And note how the background discussion to the poll demonstrates just how dishonest Steve Benen is:
China’s top government banker and a United Nations panel have both proposed that the dollar be replaced with a new global currency. However, only 21% of American adults believe the proposal is intended primarily to help the global economy.Gird your loins, folks. Don't buy the Big Lie that Michele Bachann's an extremist (as have some on the right). As I've argued in a number of recent posts, this administration, and especially the radical left, may well destroy the United States of America.
God help this nation.