By Jon Christian Ryter

March 31, 2009

 Had Ronald Wilson Reagan not been elected the 40th President of the United States on Nov. 4, 1980, and had James Earl Carter been reelected instead, by the summer of 1981 the newspapers would not have been focused on Reagan recuperating from a near-fatal assassination attempt at the hands of wannabe assassin John Hinckley, but rather the media would be asking when would Americans start using the global currency of the International Monetary Fund instead of the US dollar?

 In April, 1980 economist Leroy O. Laney, then an Assistant Professor of Economics at the University of Miami and now Professor of Economics at the University of Hawaii, was quietly retained as an economist-consultant for the Federal Reserve Bank in Dallas to examine the weakness of the foreign exchange value of the US dollar and estimate the viability of the dollar's future as the world's reserve currency. In the first page of his report, after carefully noting his report was a "working paper," and not a planned action of the Fed, he observed that questions about "...the dollar's continued role at the center of the world's financial system" arise when the dollar comes under downward pressure in the market. Laney noted the current pressures began in 1973 with the dollar fell after being devalued twice in one decade, between 1973 and 1978. Clamoring to replace the dollar as the world's reserve currency in 1980 was the Duetschemark, the Swiss Franc and the Japanese Yen. Today, it's the Russian Rouble and the Chinese Yuan. The Deutsche Bundesbank argued, in 1979, that the Deutschemark should become the world's reserve currency since, in 1979, the mark accounted for 11.3% of the official foreign exchange, making it the most likely replacement for the US dollar.

 In the 1970s, due to the volatility of the US dollar and the weakness of the British pound, there was a lot of talk about reviving the official monetary role of gold—but not necessarily reinstituting the gold standard. Gold advocates suggested using gold as an alternative asset in central bank portfolios. The Carter Administration assured the European Community in 1978 that if the Europeans sought reserve currency diversification for both their national markets and the euromarkets, the United States would not attempt to artificially perpetuate the international status of the US dollar. By 1980, Carter further obliged the globalists in Europe who were attempting to create a global monetary unit to replace all of the world's currencies by amassing its own foreign currency reserve rather than relying on short-term central bank swap lines and the traditional financing of the nation's deficit by increasing dollar-denominated liabilities to foreign countries………

 © 2009 Jon C. Ryter - All Rights Reserved

 [Read Jon C. Ryter's book, "Whatever Happened to America?" It's out of print, supply is limited.]

 Jon Christian Ryter is the pseudonym of a former newspaper reporter with the Parkersburg, WV Sentinel. He authored a syndicated newspaper column, Answers From The Bible, from the mid-1970s until 1985. Answers From The Bible was read weekly in many suburban markets in the United States.

Today, Jon is an advertising executive with the Washington Times. His website, has helped him establish a network of mid-to senior-level Washington insiders who now provide him with a steady stream of material for use both in his books and in the investigative reports that are found on his website.

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