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Attack by International Monetary Fund "could kill the U.S. Dollar and wreck America's economy," Says Monetary Expert: "The U.S. Dollar Is Dying a Death of a Thousand Cuts."
"The U.S. Dollar is dying a death of a thousand cuts," says a monetary expert. "This devastating attack by the International Monetary Fund could kill the U.S. Dollar and wreck America's economy." The International Monetary Fund, explains Craig R. Smith, was one of two major global institutions created at the end of World War II as part of the Bretton Woods agreement. Bretton Woods created the modern international money system, under which to keep values stable and reliable the U.S. Dollar was to be convertible to gold, and other major currencies were pegged to the dollar. "In 1971 President Richard Nixon chopped off the U.S. Dollar's anchor to gold," says Smith, who three decades ago founded the highly regarded company Swiss America Trading Corporation and is currently its Chairman. "The dollar and other currencies have been adrift since 1971," says Smith, "and because our politicians keep printing paper money, we have accumulated so much inflation that it today takes about $5.50 to buy what one dollar could purchase in 1971." "With America's Federal Reserve printing more trillions of dollars out of thin air for spending, bailouts, stimulus, and Quantitative Easing 2 (QE2), the countries that use our dollars to buy oil and other commodities - and whose lending covers our debts - are losing faith in the dollar," says Smith, author of the 2010 book Crashing the Dollar: How to Survive a Global Currency Collapse. "Russia, China and other nations have called for a new global currency to replace the dollar's special Reserve Currency role in buying and selling commodities such as oil," says Smith. "The IMF has just proposed using its special exchange system, Special Drawing Rights, based on multiple currencies, to replace the dollar." "In fact, last Thanksgiving week Russia and China agreed that they would trade with each other in their own currencies and no longer use U.S. Dollars." "Being the country that prints and controls the world's Reserve Currency has given the United States a huge advantage in world trade," says Smith. "Before other countries can buy oil, they must convert their currency into dollars to pay for oil," says Smith. "We simply print whatever dollars we need, forcing trading nations and our creditors to pay for part of our profligacy by acquiring our inflated, debased dollars." "European nations created their currency the Euro in 1999 in an attempt to break the U.S. Dollar's monopoly as the world's sole Reserve Currency," says Smith. "This was the start of today's 'currency wars,' in which every nation tries to make its money less valuable to make its export goods cheaper...a 'race to the bottom' that has politicians cheapening the U.S. Dollar and making our big imports such as oil more expensive." "The International Monetary Fund, heavily influenced by Europeans, last week also proposed creating SDR Bonds, and repricing assets such as oil in SDRs," says Smith. "These changes could end the dollar's supremacy as the world's Reserve Currency and force us to purchase SDRs before we could buy oil." "This would overnight devalue the dollar worldwide and make gasoline and everything else we import much, much more expensive. We would immediately become a much poorer country financially and a weaker country militarily," says Smith, who predicted this dollar decline and fall in his 208-page 2010 book Crashing the Dollar. "Late last year the President of the World Bank, the other major institution created by Bretton Woods, called for a new international exchange medium based at least in part on gold to give it a stable value," says Smith. "The gold standard, which President Nixon destroyed in 1971, had kept the dollar strong, reliable and honest," says Smith. "The integrity of gold behind our money prevented our politicians from printing excess paper money and made America the most prosperous superpower in world history." "The post-Nixon fiat dollar is a faith-based paper currency, and the world is now rapidly losing faith in it," says Smith. "Our short-term and long-term liabilities combined add up to more than $120 Trillion, obligations so big that we can never pay them off with honestly-earned money," says Smith. "Foreign nations like China and Japan have kept the U.S. solvent by advancing us Trillions of dollars in credit. They see us wildly printing and spending money - more than $4 Trillion since 2008 - and our Congress in recent years borrowing 41 cents of every dollar it spent," says Smith. "America's creditor nations quite logically worry that we plan to 'monetize our debt,' paying it off merely by printing $120 Trillion in worthless paper Federal Reserve Notes when they take away our national credit cards," says Smith. "If we do this, it will destroy the dollar and America's preeminence in the world." "Millions of Americans agree that the U.S. Dollar is going down," says Smith. "They recognize that the soaring price of gold is really the falling value of the paper U.S. Dollar. They are diversifying their portfolios to include gold, which will retain its value whatever new currency the world turns to." "People need to know that some ways of investing in gold can be a lot smarter than others...," says Smith. Can the dollar be saved from this "death by a thousand cuts" by foreign nations and institutions such as the IMF? "We can at least buy time and strengthen America by making a thousand cuts of our own - drastic cuts to government's reckless spending and to the Fed's program of printing more and more paper money," says Smith. #### 1.18.11 News Release When Chinese President Meets Obama, says Monetary Expert 
1.18.11 -- The fate of the U.S. Dollar and America's economic future will be on the table at Wednesday's (Jan. 19, 2011) White House State Dinner for visiting Chinese President Hu Jintao, warns a monetary expert.Available for Talk Show interviews on this topic is Swiss America CEO Craig R. Smith, who contends that America's economy depends on China continuing to extend credit to the U.S. The United States keeps "digging the biggest economic hole in human history," writes Craig R. Smith in his new book Crashing the Dollar: How to Survive a Global Currency Collapse. "This hole of debt is now so deep," writes Smith, "that, if you listen carefully, you can hear the voices of Chinese creditors asking one another if they will ever get back the $900 billion they have lent to us." [1] President Hu and other Chinese officials have criticized Federal Reserve Board Chairman Ben Bernanke's creation of $600 billion out of thin air by this coming July - a policy called Quantitative Easing Two, or QE2. QE2 will make every dollar worth less, says Smith, longtime Chairman of the prominent trading company Swiss America. "This means the U.S. can repay China with devalued dollars," says Smith, "and it makes China's $2.85 Trillion foreign currency reserve worth a lot less." On Sunday President Hu called the present U.S. Dollar-dominated currency system a "product of the past." [2] Because of its worldwide importance, said Hu, "the U.S. Dollar should be kept at a reasonable and stable level." [3] The U.S. Dollar since World War II has been the world's "reserve currency," meaning that oil and other key commodities are priced and purchased using dollars. This has given the United States huge advantages in the world economy, including the sole power to print global money. As Smith explains in Crashing the Dollar, we have used this position of trust like a credit card, buying what we wanted merely by printing paper dollars and paying our debts with devalued money. "The ancient Chinese invented not only money," writes Smith, "but also paper money, which they called 'wind money' because it could so easily be blown away." [4] China, along with Russia, the world's oil producers and several other nations, have mounted an effort to replace the dollar with a new global "reserve currency" that American politicians and central bankers at the Fed cannot devalue. These matters will be at the heart of what Presidents Hu and Obama have on the table this week. If the dollar loses its status as the world's "reserve currency," this will, according to Smith, devastate the U.S. economy. Crashing the Dollar quotes a former director of the New York Stock Exchange, Kenneth Langone, warning that: "The minute our foreign partners stop taking our debt, it's game, set, match...it's over" for American dominance in the world economy. [5] China is foremost among America's creditors, says Smith, with the power to crash our dollar and economy overnight. China's own growing prosperity, however, has been built through American trade. In 2010 the United States bought approximately $275 billion more in goods from China than it did from us. [6] In 2011 total trade between the U.S. and China is expected to top $380 billion. [7] "We learned to practice Mutually Assured Destruction, MAD, with U.S. and Soviet nuclear weapons," says Smith. "Today with China we are in a position of Mutually-Assured Economic Destruction." "President [Richard M.] Nixon decided that we could drive a wedge between Maoist Red China and the Soviet Union by reaching out to China," writes Smith in Crashing the Dollar. It was also President Nixon who in 1971 cut the last anchor of the U.S. Dollar in a gold standard, thereby freeing politicians to print as many dollars as they wish. As a result, the dollar has drastically lost value. What cost $1 in 1971 costs more than $5 [8], says Smith, and with today's QE2 and trillions in stimulus spending, inflation could soon explode and drastically devalue the dollar. "[T]oday China is one of our biggest creditors and holders of our debt, enabling credit junkie America to keep feeding our addiction to spending as we turn into...I.O.U.S.A." "President Nixon placed a life-or-death long-term bet that America could turn the People's Republic of China capitalist before we transferred enough wealth to make it militarily superior to us," writes Smith. "Thus far it appears that China has become a crony capitalist country but retained its near-totalitarian government." Days before last Thanksgiving, China and Russia announced an agreement to trade between themselves using only their own currencies, not dollars. China and the United States are now the two largest economies on Earth, one a sinking power and the other a rising one. China is a Communist nation, but its taxes on business are lower than those of the nominally-capitalist United States. With Japan now lowering its corporate tax rates, says Smith, "the United States has the heaviest business taxes in the entire world." [9] FOOTNOTES
[1] Crashing the Dollar, page ix, from Craig R. Smith's Introduction. ABOUT CRAIG R. SMITH:  Craig R. Smith is an author, commentator and popular media guest because he instantly engages audiences with his common-sense analyses of local, national and global trends. Serving as CEO of Swiss America for more than 25 years, Craig understands that Americans want solid answers to the tough questions and that real leadership begins with servanthood. Craig's most recent book is "Crashing the Dollar: How to Survive a Global Currency Collapse." more... News Release ~ Covers ~ Foreword ~ Introduction Table of Contents ~ Sample Quotes
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"The U.S. economy has been skyjacked" -Craig R. Smith
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Late last week the International Monetary Fund (IMF) called for replacing the U.S. Dollar as the world's Reserve Currency with its own exchange "money" called SDRs, Special Drawing Rights.