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US dollar abandoned by 9 countries; US Dollar falls further

dollar burning

Leftist Latin American leaders agreed here on the creation of a regional currency, the Sucre, aimed at scaling back the use of the US dollar.

Local currencies, which were once very popular during the Great Depression of the 1930s when federal funds were insufficient in number, are experiencing a renaissance in North America, but for new reasons. In the last decade many small towns and inner-cities have discovered that local scrip, which helped define the regional trade areas, to educate consumers about local resources and builds community.

In a barter economy simple production methods are very visible. The value of tomatoes that we offer in trade is directly linked to our memories of hoeing in the garden, construction of the heap, and wait for the rain after planting. Though our image of the cord of wood for which we barter is not as detailed, although we have probably seen our neighbor as he split and stacked the wood of the tree. Barter binds us inextricably to a particular place and time.

Money, for all its obvious benefits, introduces an element of abstraction in the economic process. This was less so in the past, where real property had been used as money back or exchange. The value was still understood in terms of quantity of labor applied to natural resources.

Today most currencies are not linked to commodities. They are, at best, attached to another, or connected in any way vague overall productivity of the country of origin. At the end of the twentieth century, the process of money creation and management has become completely ignored by most. People can speak to gain 6% interest, but have no idea what this money really doesl if it works at the construction wheelbarrows in Brazil, or if it grows corn on chemically fertilized land in Iowa, or if it makes shoes in a crowded factory in Thailand.

By voluntarily reducing our choices of consumer goods to those manufactured locally, the local currency allows us to know in detail the history of items purchased, stories that include people who have made the minerals, or how rivers, plants and animals that have given substance to the products. This form of consumerism, formed from the experience of real life, seeks to promote responsible consumer choices and a commitment to restore the community. In this sense, local currencies become a tool not only for economic development but also for cultural renewal.

The problem we have now is that many countries which traditionally pegged their currency to the US dollar, as many South American, Asian, and Middle-easter countries have for years, are now finding the value of their labor and products diminished by the devalueing of the US dollar and talk from many of these countries that the US dollar would be worthless because of their growing deficits and unlikely possibility of their paying back debts.

One of the main points of the former Americanism as espoused by Hamilton is that every single nation-state was to have financial soveringty within its own borders, That each nation-state’s government was to be the sole arbitrator was to what its own currency was worth within its own borders. But Monetarism prevail and then system things as teh IMF developed to make Credit of each nation and each person subject to the whims of a very small cabal of international bankers.

Just recently, 9 countries have decided to “ditch” the US dollar as preferred method of exchange and decided to establish their own local currencies in frantic efforts to avoid inflation.

Excerpt from: upside down world in April ’09

During the meeting Chávez said that the SUCRE, which stands for the Unified System of Regional Compensation (Sistema Único de Compensación Regional), “will be much more than a currency.” According to Chavez, the Sucre system will have four branches: The Regional Monetary Council, The Sucre currency itself, the Central Clearing House, and a regional reserve and emergency fund.

“This will help us to overthrow the dictatorship of the dollar, imposed on us from over there, from Bretton Woods,” said Chávez.

LatAm leftists tackle dollar with new currency


COCHABAMBA, Bolivia — Leftist Latin American leaders agreed here on the creation of a regional currency, the Sucre, aimed at scaling back the use of the US dollar.
Nine countries of ALBA, a leftist bloc conceived by Venezuelan President Hugo Chavez, met in Bolivia where they vowed to press ahead with a new currency for intra-regional trade to replace the US dollar.

“The document is approved,” said Bolivia’s President Evo Morales, who is hosting the summit.

The new currency, dubbed the Sucre, would be rolled out beginning in 2010 in a non-paper form.

That move echoes the European Union’s introduction of the euro precursor, the ECU, an account unit designed to tie down stable exchange rates between member states before the national currencies were scraped.

ALBA’s member states are Venezuela, Bolivia, Cuba, Ecuador, Nicaragua, Honduras, Dominica, Saint Vincent and Antigua and Barbuda.

The currency, which was backed in April this year, is named after Jose Antonio de Sucre, who fought for independence from Spain alongside Venezuelan hero Simon Bolivar in the early 19th century.

The bloc also called for the replacement of the World Bank’s International Centre for Settlement of Investment Disputes, which arbitrates international contract disputes and has probed a slew of disputes involving ALBA members and western energy firms.
Most ALBA members have already withdrawn from the organization, with Ecuador announcing last July that it would pull out of the group.

When Going Gets Tough, Local Currency Gets Going

By Karla Adam
Special to the Washington Post

LONDON — Throughout Britain, people are hanging on to their hard-earned pounds, scrimping and saving as they ride out the recession.

But in a few communities, people are taking a different tack: printing their own money and spending it. No, the queen’s image on the iconic British pound isn’t being counterfeited. Instead, some communities are producing their own scrips — some of the latest have painter Vincent van Gogh’s face on them — which can be used much like cash at participating businesses.

The latest community to do so is Brixton, the second area in Britain this month that introduced its own currency. With an initial run of 40,000 notes in various denominations, it is the most ambitious project here of its kind so far.


  1. arlenice arlenice January 10, 2010

    The U.S. needs to exercise fundamentalities. We are learning the hard way that money doesn ‘t grow on trees. The Administrators of our nation would be homeless if they managed their own money in the manner that they are managing the finances of our country. It is necessary that we stop the sharing of our wealth with other countries. It is a time that we need to utilize our own resources. We need to produce our own products as needed and not rely on other countries who shunn us after we have helped them. We need to stop relying on credit cards and learn that we have become our own, worst enemy. The White House needs a rude awakening. Americans already are in their worst nightmare. ..many are without employment and homeless and/or on their way to homelessness. America, Wake Up!

  2. Junita Luneau Junita Luneau May 30, 2010

    Staggering piece of writing, I share the same views. I wonder why this specific universe truly does not picture for a moment just like me not to mention the weblog operator 😉

  3. David Jeremiah David Jeremiah May 31, 2010

    America, the Nation that gave Freedom, Knowledge and Democracy to the World is now playing the role of the mentally skewed Angel which holds a Beacon that bestows darkness upon the Financial World of Trade, Commerce and Business. How can the rules of accountancy be different for the small and the Big ? I think the people have tolerated sufficient suffering because of the deregulation of the financial system. The deregulation of the financial system is just a sign that many of the rights of the people are also going to be striped off soon. The FED is printing so much money that all the trees in Canada and US won’t be enough. First they got rid of the use of Gold in 1971. Now in 2010 they hit pay dirt that they don’t even need to use trees or even ink. Electronic printing on computers doesn’t even need ink ! Ben Bernanke is going to stash all his cronies with inkless, treeless, goldless, regulationless funds, – make the world buy and borrow for a living instead of work and save, – then blame them for not using our head, – and the people will be paying debts for the next 3 generations that Bernanke incurred for them by a goldless, treeless, inkless – scam, scandal and fraud. Get that Ponji scheme Maniac behind bars before the rest of us perish ! What audacity of America to think that it is OK to print money without limit and serve it to the irresponsible and unaccountable Big Banks !!!!

  4. Jason Jason Post author | July 7, 2010

    Buddy you should check the bottom of the articles. You must be blind!

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