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Page added on January 30, 2014

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World Bank Ex-Chief Economist Calls For End To Dollar As Reserve Currency

World Bank Ex-Chief Economist Calls For End To Dollar As Reserve Currency thumbnail

In the past we have discussed at length the inevitable demise of the USD as the world’s reserve currency noting that nothing lasts forever. However, when former World Bank chief economist Justin Yifu Lin warns that “the dominance of the greenback is the root cause of global financial and economic crises,” we suspect the world will begin to listen (especially the Chinese. Lin, now – notably – an adviser to the Chinese government, concludes that internationalizing the Chinese currency is not the answer (preferring a basket approach) but ominously concludes, “the solution to this is to replace the national currency with a global currency,” as it will create more stable global financial system.

 

The infamous chart that shows nothing lasts forever…

Nothing lasts forever… (especially in light of China’s earlier comments [21])

 

Via China Daily,

The World Bank’s former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.

“The dominance of the greenback is the root cause of global financial and economic crises,” Justin Yifu Lin told Bruegel, a Brussels-based policy-research think tank. “The solution to this is to replace the national currency with a global currency.”

 

Lin, now a professor at Peking University and a leading adviser to the Chinese government, said expanding the basket of major reserve currencies — the dollar, the euro, the Japanese yen and pound sterling — will not address the consequences of a financial crisis. Internationalizing the Chinese currency is not the answer, either, he said.

 

 

China can only play a supporting role in realizing the plans,” Lin said. “The urgent thing is for the US and Europe to endorse these plans. And I think the G20 is an ideal platform to discuss the ideas,” he said, referring to the group of finance ministers and central bank governors from 20 major economies.

 

The concept of a global “super currency” tied to a basket of currencies has been periodically discussed by world leaders as well as endorsed by 2001 Nobel Memorial Prize-winner Joseph Stiglitz. A super currency could also be tied to a single currency, but the interconnectedness of world financial markets and concerns about the volatility that can occur as a result of the system being tied to one currency have made this idea less popular.

 

Arguments in favor of a global currency resurfaced during October’s US budget impasse, which forced the government to shut down (as we noted here).

“It is perhaps a good time for the befuddled world to start considering building a de-Americanized world,” a Xinhua News Agency commentary said on Oct 14. The piece argued that creating a new international reserve currency to replace reliance on the greenback, would prevent government gridlock in Washington from affecting the rest of the world.

 

In March 2009, China’s central bank governor, Zhou Xiaochuan, called for the creation of a new “super-sovereign reserve currency” to replace the dollar. In a paper published on the People’s Bank of China’s website, Zhou said an international reserve currency “disconnected from individual nations” and “able to remain stable in the long run” would benefit the global financial system more than current reliance on the dollar.

Of course, as we are seeing now, it’s not just the Chinese that are concerned…

On that note, David Bloom, global head of FX research at HSBC, said US monetary policy change “will bring fluctuations for emerging countries’ currencies and lead to financial instability”.

 

Chen Wenling, chief economist at the China Center for International Economic Exchanges, a government think-tank, said, “A supranational currency may be a new direction for development of the global financial system. It also requires different countries to cooperate in coordinating macroeconomic policies.”

 

Bloom and Chen both said China needs to play a more important role in global financial governance. But Bloom said it is difficult for international financial organizations to reach a consistent conclusion on how to improve the foreign exchange system.

 

He said the renminbi is predicted to be stronger this year, even against an appreciating US dollar, and internationalization of China’s currency will accelerate when the government decides to further open the capital market.

Of course implementation will be painful…

Pierre Defraigne, executive director of the Madariaga College of Europe Foundation in Brussels, said of Lin’s infrastructure proposal, “It is excellent, but the problem is how to implement these plans to link those countries that need such infrastructural construction and those with enough foreign reserves, by using an effective global mechanism.”

As we noted previously, the muddle-through is over and there is no painless solution left…

Michal Krol, a researcher at the Brussels-based European Center for International Political Economy, said …

 

I don’t think that the largest economies and their currencies are at this moment ready for the introduction of a supranational currency,” Krol said. “Neither the EU nor China have financial markets and monetary systems yet that are sound, solid, predictable and well functioning to be the cornerstone for a global system. But, indeed, it is time to formulate the fundamentals for global monetary governance.”

zerohedge



32 Comments on "World Bank Ex-Chief Economist Calls For End To Dollar As Reserve Currency"

  1. Northwest Resident on Thu, 30th Jan 2014 2:34 am 

    “The dominance of the greenback is the root cause of global financial and economic crises,” Justin Yifu Lin told Bruegel.

    Wrong. The soaring cost of energy combined with rapidly decreasing resources and exponential population growth is the root cause of global financial and economic crises.

  2. PapaSmurf on Thu, 30th Jan 2014 5:07 am 

    Actually the root cause was mostly just a bunch of crappy mortgages and weak lending standards, mostly encouraged by the repeal of Glass Steagall.

    Trying to link everything back to the worship of oil is silly.

  3. Dave Thompson on Thu, 30th Jan 2014 5:12 am 

    Try not using any oil or gas in your day to day activities and tell me how “silly”you feel about your statement PapaSmurf.

  4. Northwest Resident on Thu, 30th Jan 2014 5:30 am 

    PapaSmurf — Its okay, there are lots of ignorant people such as yourself who aren’t perceptive enough to see the facts through all the lies and propaganda, or who can’t overcome their pre-conceived notions. What makes you unique is that you are compulsively inclined to come to this website and whip out your one-liner denunciations from time to time.

  5. clueless on Thu, 30th Jan 2014 8:25 am 

    Question: How come dollars are still the reserve currency?

  6. J-Gav on Thu, 30th Jan 2014 8:39 am 

    A supranational currency “… also requires different countries to cooperate in coordinating macroeconomic policies.” Exactly. And just how much of that have we seen lately?

    Trundling along ‘as is’ will end up with the implosion of the present system. Shifting it to any other global form would entail painful, messy and time-consuming adjustments. I don’t say it can’t be done, only that 1 – We’re not there yet; 2 – Any such globalized macroeconomic policies should be accompanied by the parallel development of local currencies to offset the potential of extending the hegemonic tendencies that the international financial bigwigs have so frequently demonstrated.

  7. Arthur on Thu, 30th Jan 2014 10:01 am 

    Wrong. The soaring cost of energy combined with rapidly decreasing resources and exponential population growth is the root cause of global financial and economic crises.

    That’s correct of course, but you can’t expect the Chinese to advocate an end to the dollar as a reserve currency (and as such a free lunch), just because they want to downsize US benevolent hegemonic power.

    Going to happen anyway. But hey, don’t worry, just scuttle 13 carriers in the middle of the Atlantic and call troops home from 800+ foreign basis and you’ll be fine, just like mere mortals such as there are Europeans, Russians and Chinese. There is a life after the empire, ask the British 😉

  8. robertinget on Thu, 30th Jan 2014 1:16 pm 

    Find us a truly democratic nation with an economy as large as the US to discover a safer place for rich people worldwide, to put their money.

    Any true financial crisis in America will devalue the dollar. This devaluation spreads faster than a speeding bullet.That in turn upsets
    developed economies. All these currencies begin to fall. Rich people
    simply buy dollars to protect themselves against a plummeting peso, euro, whatever. Result, USD’s regain strength
    because of Treasuries being purchased
    at zero interest.

    In financial crisis, there is simply NO other currency large enough to shelter
    foreign wealth in trouble.
    This FACT is provable daily. USD is currently the strongest, most trusted currency worldwide.

    THe USD is so strong we permit several other nations, including one OPEC member to use dollars as their own single currency. Because oil, and it’s price,
    availability, determine market movements
    worldwide, ONLY the Petrodollar is trusted not to fluctuate wildly against
    any basket of currencies.

    China holds One Trillion USD’s in reserve. Needless to say, it’s not in China’s interest to undermine the dollar.

    If anything the dollar is way too strong today because of spreading Middle East and African conflicts.

    A strong dollar is bad for exports, costs US jobs but offset by lower cost for six or seven million barrels a day of imported oil.

    One look at US OLD import/export deficits and one begins to understand
    Japan’s death spiral resulting from closing 40+ nukes.

  9. robertinget on Thu, 30th Jan 2014 1:43 pm 

    One of the strongest, perhaps most destructive forces worldwide in ‘nationalism’. The USD works, more or less, because we have a single government with three branches.

    The Brits were too concerned about disunity to join the euro. GB shares that land mass. Could Africa or the Middle East ever in your wildest dreams
    share a single currency? Most of these guys won’t share a room with each other.

    All the world’s peoples do share one value however, the USD. In short, we ALREADY have an international currency, it’s called “the dollar”.

    A few weeks ago I compared North America
    to Europe stating Europe hadn’t seen a war since the late twentieth century.
    Canada, Mexico, US have had friendly relations for over a hundred years.

    Today we see Europe again in eruption.
    Should The Ukraine join with a Russian trade block or euro? Trust me, it’s ALL about oil. If a former Soviet Bloc nation can’t decide which currency it should use, the ruble or euro, good luck selling a currency shared by a potential enemy or those of a different religion or branch of their own religion.

  10. SteveO on Thu, 30th Jan 2014 1:43 pm 

    The dollar’s death warrant was signed on 15 August 1971 by Richard Milhous Nixon. It has has taken more than 40 years for it to do it, but it will die.

  11. Makati1 on Thu, 30th Jan 2014 3:38 pm 

    “The dominance of the greenback is the root cause of global financial and economic crises”. While that is correct, unbridled capitalism is it’s Siamese twin. Both are killing the earth and preventing world peace.

    Anyone thinking that China will not dump the dollar does not know history. China does not depend on the US consumer as much as you may think. And they do not have to dump the dollar. All they have to do is convince the IMF to use a basket of currencies to price their drawing rights notes as currency that can be used in world trade. They are working along with Russia to convince the IMF to switch to this new method of payment circumventing the dollar. It is only a matter of time. The world is tired of the theft that the US is doing every day with their money printing. You should be also.

    And, a trillion worthless US dollars is not security to pin your hopes on people. The Chinese know that their dollar holdings are turning into toilet paper so they are buying gold with it by the tons, mines, oil fields, farms, etc., all over the world.

  12. GregT on Thu, 30th Jan 2014 5:59 pm 

    The answer is not further globalization, it is the return to small, localized, sustainable economic activity. Modern industrialization, with continued exploitation of energy and natural resources is coming to an end. We live on a finite planet, with finite resources, and all current fiat monetary systems require infinite exponential growth, or they will collapse. Which is precisely what the US dollar is in the process of doing.

    “Find us a truly democratic nation with an economy as large as the US to discover a safer place for rich people worldwide, to put their money.”

    Well for starters, the US is not a TRULY democratic nation. Not anymore. There are only two political choices, both have become corrupt, both are run by lobbyists, and both are controlled by corporate interests. The US has become a corpocracy. The US ‘economy’ is dying a slow death, and the only thing holding it up is massive amounts of debt. As another article above so clearly illustrates, GDP is NOT a reliable indicator of economic wellbeing. The US’s biggest exports are militarism, and inflation. The Chinese are well aware of this, and this is precisely why they are amassing commodities, land, energy resources, and gold.

  13. GregT on Thu, 30th Jan 2014 6:12 pm 

    Oh, and before I’m bombarded with the usual American hater rhetoric, I am a Canadian, and I am very aware of the seriousness of the implications of a US dollar collapse on the Canadian economy. Which is precisely why I MYSELF, am investing my assets in commodities, land, alternate energy resources, and gold.

  14. Tom S on Thu, 30th Jan 2014 6:54 pm 

    PapaSmurf:

    “Trying to link everything back to the worship of oil is silly.”

    Good for you. Especially since you will now be subject to a long string of hysterical emotional outbursts from doomsday cultists who cannot stand even the slightest contradiction of their doctrines. Every time someone points out a fact to them, they throw an emotional fit. Every time someone points out their long string of drastically failed collapse predictions, they throw an emotional fit. This time will be no exception, as I suspect you know. Yet you did it anyway. Good for you.

    -Tom S

  15. Tom S on Thu, 30th Jan 2014 6:57 pm 

    Northwest resident:

    “Its okay, there are lots of ignorant people such as yourself who aren’t perceptive enough to see the facts through all the lies and propaganda, or who can’t overcome their pre-conceived notions… etc… etc…”

    Wow. It sounds like you’re flipping out, in the face of what appeared to be a fairly innocuous factual claim. Even if the poster were wrong (he is not), why didn’t you offer something other than a long string of vitriolic personal remarks?

    -Tom S

  16. Tom S on Thu, 30th Jan 2014 6:59 pm 

    Dave Thompson:

    “Try not using any oil or gas in your day to day activities and tell me how “silly”you feel about your statement PapaSmurf.”

    That doesn’t support your point at all. Even if I use oil and gas in my typical day, that doesn’t imply anything about whether the economic crisis was caused by bad mortgages or the increasing price of oil.

    -Tom S

  17. Tom S on Thu, 30th Jan 2014 7:01 pm 

    SteveO:

    “The dollar’s death warrant was signed on 15 August 1971 by Richard Milhous Nixon. It has has taken more than 40 years for it to do it, but it will die.”

    That seems to have falsifiability problems. People have been claiming that the dollar would implode and the economy collapse, for that reason, for 40+ years. Yet it still hasn’t happened. When do you conclude that the doctrine is false?

    -Tom S

  18. Northwest Resident on Thu, 30th Jan 2014 7:17 pm 

    Tom S — Are you PapaSmurf’s sock puppet? What are you two reality deniers doing here anyway, if not because you simply enjoy tossing your smarter-than-you insults around and trying to satisfy your own warped emotional needs by stirring up the water in a place that you won’t find anybody who agrees with you? I mean, why bother. If you’re so smart and so sure that your own superiority at interpreting today’s financial and oil situations, why not just smugly keep on walking by and leave all the falsifiability problems to us? Answer: You and PapaSmurf are terrified so terrified of peak oil and all its implications that you feel a compulsive need to dispute it and try to ridicule those who belief what you your attempt to suppress in yourself — just like avid haters of homosexuals are almost always “closet homosexuals” themselves. Is that what you and PapaSmurf are — closet Doomers?! Yep — that explains it…

  19. Northwest Resident on Thu, 30th Jan 2014 7:26 pm 

    Tom S — being PapaSmurf’s sock puppet, you no doubt realize that it is PapaSmurf tossing around the “vitriolic personal remarks” here at peak oil. He goes over to his computer once every two or three days, comes to this site and bangs out one or two short little denunciations of what this website discussion forum is here for, then he crawls back to wherever he came from — in two or three days, he’s back again, repeat constantly. Your only possible reason for being here is because you have a compulsive need to DENY peak oil — for whatever psychological reasons you have that drive you here. Why don’t you go find some other forum where people are discussing a subject you disagree with, try changing their minds with your idiot statements? Please do go share your intellectual supremacy with somebody else. And take your left hand (PapaSmurf) with you, or is that your right hand?

  20. Tom S on Thu, 30th Jan 2014 7:54 pm 

    Northwest resident:

    “Why don’t you go find some other forum where people are discussing a subject you disagree with, try changing their minds with your idiot statements? Please do go share your intellectual supremacy with somebody else. And take your left hand (PapaSmurf) with you…”

    Sure. I’ll leave. I won’t post here again for awhile. You’ve made it very clear that you don’t appreciate disagreement. You guys can go back to unfettered agreement that civilization is (yet again) about to collapse.

    However, I wish to make sure you understand, that the collapse you envision is not happening.

    Best wishes,
    -Tom S

  21. GregT on Thu, 30th Jan 2014 8:15 pm 

    TomS,

    How about commenting on the article. Tell us what you believe the end of the US dollar as the world’s reserve currency would mean. Disagreement is fine, back up your views. Also while you’re at it, please explain how you believe that the ongoing global economic crisis is not a direct result of a tripling in energy costs over the last 5 years.

  22. Northwest Resident on Thu, 30th Jan 2014 8:20 pm 

    Tom S — (aka: PapaSmurf): If only you and PapaSmurf would make a cogent argument, cite some fact, reference some links — you know, build your case — then I and I am sure most people here would enjoy debating you. But you (and PapaSmurf) don’t cite facts or attempt to build your case. You just stop by, spit on the ground, make a grimace, toss out an insult and leave, till next time. Let’s hear YOUR facts, Tom and Smurf — stick around and make your case.

  23. Northwest Resident on Thu, 30th Jan 2014 8:48 pm 

    GregT — I’m not sure if you got my response on something you posted on another article — they disappear so fast from this site. I’m in Oregon, not WA. And I was effusively enthusiastic and congratulatory re your little neck of the woods — sounds like an awesome place to be. But question: When a deer “attacks”, what does it do? Bite? Kick? Both?

  24. Arthur on Thu, 30th Jan 2014 9:00 pm 

    Find us a truly democratic nation with an economy as large as the US

    The US is just as democratic as North-Korea or the USSR of former fame, namely none at all (the real difference between the US and NK is not a non-existing democracy, but that glorious document called the Constitution, which typically Washington tries to abolish in it’s relentless push of becoming a full blown dictatorship). The situation in Europe is a little better, since here it is still possible to break in into the political pasty system, but I would not call Holland a democracy either. Democracy is when the population is directly asked about issues of importance, like war or introduction of the euro or European Constitution. In the latter case, the population in Holland and France WAS asked, but gave the wrong answer and the Constitution was introduced regardless. The West is a political correct, kosher leftist, soft-tyranny, aimed at establishing a global banker government.

    All the world’s peoples do share one value however, the USD. In short, we ALREADY have an international currency, it’s called “the dollar”.

    That’s general knowledge and a leftover of the outcome of WW2. The question is how much longer this situation will continue. All the signs are: not much longer. China is continuously sending signals that it wants to change that, like the article above.

    Today we see Europe again in eruption.

    I am sorry, but Ukraine is not Europe. The former are begging to be let in into Europe. The Ukraine saw what happened to Poland and it’s miraculous transformation, thanks to EU membership, and now the dirt poor Ukrainians predictably want that too.

    People have been claiming that the dollar would implode and the economy collapse, for that reason, for 40+ years.

    That is absolute untrue. The distrust in the dollar stems from 2008, in the wake of the Lehman debacle. Nobody seriously challenged US supremacy between 1991 and 2008.

  25. Northwest Resident on Thu, 30th Jan 2014 9:05 pm 

    Arthur, I enjoy reading your posts, although I have to admit that your come out with some statements that make me wonder where you got that idea. Saying for example that “US is just as democratic as North Korea.” That one just seems way, way, WAY out there to me. I’m sure it would to you too, if you really thought about it.

  26. GregT on Thu, 30th Jan 2014 9:19 pm 

    NWR,

    They use their front hooves mainly, and they head butt. It is usually the does with fawns, that attack dogs, or people with dogs. There have been cases of bucks attacking as well.

    A quick google search ‘Deer attack BC’ will show some news stories. There is also a video of a hunter on YouTube, I think in the states, that is attacked by a white tail. It looks kind of comical, but I wouldn’t want to be on the receiving end.

  27. Northwest Resident on Thu, 30th Jan 2014 9:33 pm 

    GregT — In this video, the poor dog is just an innocent bystander but that doe is looking to kick some serious butt, and takes it out on the poor dog. Wow, what a mauling… And that cat — of course it is a trouble maker, they all are. Just walks up to the doe and when the doe tries to grab a little sniff, the cat claws it on the nose, prompting the doe to commence a little kick-butt on the cat too. Fortunately for the cat, it is a lot quicker than the dog…:-) Yeah, that’s a big problem you guys have up there!!

    http://www.huffingtonpost.ca/2011/06/21/deer-attacks-dog-in-cranbrook_n_881050.html

  28. DC on Thu, 30th Jan 2014 9:50 pm 

    Arthur is trying to explain to you, in forceful terms than I might, that the US is not a democracy-simple enough. Its only seems ‘way out there’ to you, because of a lifetime of feel-good exceptionalist rheotoric you have been subjected to. Its ok though, I used to think the ‘west’ as A-oK too. Thought we had it all figured out. ‘We’, and by ‘we’ I mean the west collectively(and not amerika specifically), were the white hats, everyone else that disagreed with our corporate-consumerist-war ‘way of doing business’, were the black hats.
    But I am past all that now-called growing up. So yes, Arthurs assement of US ‘democracy’ being on par with North Koreas is as accurate a statement as any. I am sure you noted he was no kinder to his own govt, even ‘ultra-liberal Holland’. For my part, I know my own ‘democracy’ is a sham too. My country is little better than an energy\resource colony of the US and its govt is completely subservient to US corporate demands. IoW, were all in pretty much the same boat there NWR. Maybe we just see things a little more clearly is all.

    You are familiar with the term ‘inverted democracy’ right? Sometimes referred to as Inverted totalitarianism,though the meanings are essentially the same. A gov’t with (some) of the *outward* signs of ‘democracy’, but none of the reality of it (however one wishes to define the term). My own take on the term is,

    The Illusion of Choice.

    Anyhow…..

    http://en.wikipedia.org/wiki/Inverted_totalitarianism

  29. GregT on Thu, 30th Jan 2014 9:58 pm 

    NWR,

    Damn cats, always causing trouble, and getting away with it. LOL.

  30. Northwest Resident on Thu, 30th Jan 2014 10:38 pm 

    DC, I agree with you that America is not a “democracy”. Ever since I was forced to read a college textbook called “Democracy For the Few” in my political science class, I have understood that “we the people” is just a big illusion. The elite run America — and the world — always have — always will. The elite make all the decisions, then manipulate public opinion, do or don’t count votes in elections all depending, and employ numerous other methods to make us all think we are living in a true democracy, when we don’t. You don’t need to characterize me as an American who has been duped into believing “the feel good story” of democracy in America. Dude, I’ve got it all figured it, as good or better than you.

    All that being said, I think there are a million examples of “democracy” working in America on a minor and collectively, on a major scale. We do get to vote, and sometimes our votes count. We do get to express our opinions openly, without fear (most of the time). We do have choice in our lives. We can move, immigrate, come back, bad mouth the government, talk shit to the local policeman, etc… In North Korea, they execute you just for not showing up to the government mandated pep rally on time. And they throw your wife and kids into the concentration camp just for the fun of it, and because they have recently opened slots as they carry the stiffs out the back door for burial or burning. There is NFW that you can compare North Korea to America on any level, at least, not rationally. If you don’t understand that, then it is your loss. We are so far from perfect in America that it isn’t even funny — but name one country that is more perfect than us, all things considered. In America, we strive for freedom and democracy — on the grass roots and ideological level that is — our hearts are in the right place. Dude, you are WAY TOO CRITICAL of America and Americans. That’s my point of view.

  31. Makati1 on Fri, 31st Jan 2014 1:48 am 

    Democracy in the US is an illusion. There are no freedoms left inside the 50 states. None. They have been absent for decades, but you just didn’t notice. Freedom of speech? With new laws that don’t allow you withing 100 feet of a politician? The need for a permit to protest? And have you tried to leave and come back into the US lately?
    The TSA gestapo is still groping anyone they want, and you can be on a no fly list and not even know of it. You email, text messages and phone calls are recorded. You internet activities are recorded. Everything you buy with your credit/debit card is recorded. Your car is tracked as is your cell phone. There are so many laws on the books that you have broken at least one everyday of your life.

    The US is a terrorist police state that is dying and trying to take the rest of thew world down with it. The EU is in the same situation as all of the socialist programs are also dying with the end of cheap energy.

    Japan will maybe go to war to try to save itself, but will not succeed. This is not the early 1900s. China could destroy Japan in one day if it chose to do so. I think Japan knows this and is just desperate for a distraction from its troubles, which goes double for the US and the EU.

  32. Arthur on Fri, 31st Jan 2014 8:01 am 

    DC, I agree with you that America is not a “democracy”.

    That was quick.

    Look NWR, this is not about bashing America. There is a lot to be admired about America. I stand up and go to bed with America, http-wise, so to speak. What IS great about America is the Constitution and as a consequence radical freedom of speech, which creates the atmosphere that enables us to freely exchange ideas, like on this forum. That actually is (a little) better than in Europe. In this sense North-Korea is a bad joke. For me as a Dutchman there are no people on this planet easier to relate to than North-Americans, easier even than Germans, let alone French. Which has everything to do with a centuries old common heritage of dominant Protestant/Calvinist religion, capitalism, civil liberties, individualism, Enlightenment, the lot (which, apart from Enlightenment, all started in the Netherlands btw). One can be very skeptical if democracy really can exist. It does exist in small western outposts like Switzerland, that has a democracy-by-hand-raising-on-the-market-place tradition, and Iceland perhaps. Even the ‘cradle of democracy’, classic Athens/Greece was in reality a democracy of the very few, the elite really. The only way for the people in the US to break in into the political system is by grassroots action, CIRCUMVENTING normal ‘democratic procedures’: Vietnam demonstrations, OWS, Teaparty. US Congress is a joke, ‘Israeli Occupied Territory’, as Pat Buchanan once aptly called it. Americans go to the voting booth every four years to vote for a face and a slogan (“change”). When that circus is over, the ‘American Supreme Soviet’ (CFR) and host of other kosher dominated bodies takes over again to define real policies, like intervention in Iraq, Lybia, Syria, FED monetary policies, etc., etc. The policy papers produced by these political bodies are handed over to the president, a poster boy, by the David Axelrod’s du jour, and reads it aloud in the microphone. That’s the US political system for you, a situation that began with the founding of the Fed, got a real boost from the Roosevelt government and picked up again since LBJ. And now with 9/11 and NSA, the system is on on course of becoming the next USSR, if Washington gets it’s way.

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