Bachmann Bill: Don't Replace The Dollar

By: Brian Montopoli
Topics: Congress

(AP)

Minnesota Rep. Michele Bachmann has introduced a resolution in the House "that would bar the dollar from being replaced by any foreign currency."

Think Progress' Matthew Yglesias first flagged the legislation, which appears to reflect confusion on Bachmann's part about calls by China for a so-called "international reserve currency."

Here's why: China has indeed called for a new global currency that would, in one sense, replace the dollar. But that does not mean Americans would start using such currency in everyday transactions. The dollar would only be "replaced" in that it would no longer serve as the world's reserve currency.

Because it has a significant investment in U.S. government bonds, China is concerned that its investments will be devalued as a result of inflation tied to U.S. economic struggles and the Obama administration's stimulus and bailout spending.

Along with some other countries, it has called for a global currency controlled by the International Monetary Fund that would be made up of a number of currencies and "achieve the objective of safeguarding global economic and financial stability."

And as Yglesias points out, Congress couldn't legislatively ban such a move even if it wanted to, since this is a "decision by foreign countries about what they do with their reserves."

Despite these facts, Bachmann's press release about the bill is headlined "Bachmann Demands Truth: Will Obama Administration Abandon Dollar for a Multi-National Currency?"

The move landed her at the top of the conservative-leaning and enormously popular Drudge Report web site.

Contacted by Greg Sargent, Bachmann's spokesperson said the representative understands the situation and is "talking about the United States."

"This legislation would ensure that the U.S. dollar remain the currency of the United States," added the spokesperson. As Sargent notes, there has been no suggestion from China or anyone else that the dollar cease to be the currency of the United States.

On Tuesday, Bachmann asked Treasury Secretary Timothy Geithner and Federal Reserve Chair Ben Bernanke to "categorically renounce the United States moving away from the dollar and going to a global currency."

Both men did so, but Geithner later said he was open to an international reserve currency. He later walked back that comment, which Bachmann seized on in her press release. Again, however, the creation of such a currency would not mean the U.S. would "abandon" the dollar.

Brian Montopoli
Brian Montopoli is the senior political reporter at CBSNews.com.
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by MorrisonBonpasse April 5, 2009 7:26 AM EDT: Presumably, Rep. Bachmann wants for Americans what all the world's people want: global financial stability. For much of the 20th century, the U.S. dollar provided that stability, but the world trade and finance are now more globalized and the old multicurrency international monetary system is obsolete. The world should be grateful to China and the U.N. Panel led by Nobel Laureate Joseph Stiglitz for leading the way to a Single Global Currency, which will be managed by a Global Central Bank within a Global Monetary Union. Their interim proposals for a new "reserve currency" are only a first step toward long term global monetary stability. As China requests, this next global currency will not be the responsibility of just one country.
What is needed now is international recognition of those goals, and research and planning to achieve them.
The success of the euro shows that monetary union is the best way to
ensure monetary stability. The primary problem with the euro and currencies of other monetary unions is that they still must co-exist within the international multicurrency system itself where the value of those common currencies must still fluctuate in value against each other.
If 16 countries can use the same currency, why not 192?
In addition to eliminating currency risk, the use of a Single Global Currency would eliminate the current foreign exchange trading expense of $400 billion annually, eliminate current account imbalances,
eliminate the need for foreign exchange reserves (now totaling more than $4.2 trillion); and bring other benefits worth trillions.
The Single Global Currency Assn. (www.singleglobalcurrency.org)
promotes the implementation of a Single Global Currency by 2024, the 80th anniversary of the 1944 conference. That's only 15 years away.
The world is moving toward a Single Global Currency through the creation, expansion and merger of regional monetary unions. Another route is through international monetary conferences proposals and agreements, such as were seen at Bretton Woods in 1944.
The challenge now is to reach that goal planfully, as soon as possible, with as little cost and as few crises as possible.
See the book, "The Single Global Currency - Common Cents for the World."
Morrison Bonpasse
Single Global Currency Assn.
Newcastle, Maine, United States; Reply to this comment


by VinceP1974 March 28, 2009 12:39 AM EDT: of course i didn't notice the horrible grammar until I hit send and it was too late.; Reply to this comment


by VinceP1974 March 28, 2009 12:38 AM EDT: I wonder under what circumstance would these Leftists ever NOT complain about people who are in acting in defense of the country?

Listen to these people.. they're so emotion over this. Their responses so devoid of substance and just pure personal attack.

It seems the chief objective is that she's "crazy" or "nuts" After all this country has been through since 2001 we need more anticpating crazy and nutty events .. not less.

But why these people seriously? Obama and company will ensure the collapse of the US Dollar and with it Constitutional government and more than likely the US Military. And just try to get gas with a worthless dollar, and thanks to the Dems we will have ever decreasing production of our oil... destroying all econmic activity.

But they complain her. We should take them seriously? No .. We must defeat them.; Reply to this comment


by twicky333 March 27, 2009 11:18 PM EDT: I want to see a public condemnation of Representative M Bachman's call to arms and revolution against those ELECTED to hold office. By her own admission, her words ARE NOT metaphoric. To have a sitting member of the U.S. Congress spew such incendiary remarks is irresponsible, dangerous, and an act of treachery that should not be ignored.; Reply to this comment


by PacificGatePost March 27, 2009 2:23 PM EDT: China is simply flexing its economic muscle before the G20 meeting.

http://pacificgatepost.blogspot.com/2009/03/chinas-weak-gambit-on-currency-shift.html

The U.S. Dollar is not about to be replaced, regardless what China's wishes might be.; Reply to this comment


by bytheway59 March 27, 2009 1:11 PM EDT: this woman is nuts, i don't live in the 6th CD that elected her, i would have to move if i did. I live in a neighboring 5th CD Representative Ellison. I feel sad for the people in the 6th Congressional District.; Reply to this comment


by mattcat25 March 27, 2009 9:38 AM EDT: Michele Bachmann (turner overdrive) represents all the Principles, Integrity, and Message of the Conservative Right Wing Republican Party.

There you have it, right there.; Reply to this comment


by inachu1 March 27, 2009 8:41 AM EDT: You know early one in my young teen years reading the Bible it states how christains are to be against this NEW WORLD ORDER but its funny how they do not follow the Bible wishes and those same christians are pushing these very changes and are the builders who this new world order. Now why would they do something like that?

I suspect they are truly atheist and want world war all for the love of money.; Reply to this comment


by johnb8888 March 27, 2009 8:19 AM EDT: It was really funny to watch Michelle Bachmann at Bush's last "State of the Union" address. Wearing a white dress like she was at First Communion, she rushed into the aisle as Bushit entered the room, and threw herself on him. Bush had to shove her out of the way.

Bachmann came across like a love-struck groupie at a rock concert. Only a bunch of brain-dead Holy Rollers of the hemorrhoidal "red ring" exurbs would put a bimbo like this in office.; Reply to this comment


by budmag06 March 27, 2009 2:55 AM EDT: It is becoming more and more obvious that Obama's plans are not in the best interest of the people of the U.S. His plans serve the goals and fundementals of socialism. It is time to start telling him "NO"!; Reply to this comment