March 27, 2009

Loverly Bunch of Coconuts

Rep. Michele Bachmann (R-MN) is at it again. As I’ve pointed out before, this lady is a few French fries short of a happy meal. And in Glenn Beck, who I have also found reason to ridicule, she has an enabler in her most recent whacky quest.

Bachmann, following some comments made earlier this week by the Governor of China’s Central Bank, began spouting off about some global conspiracy that the world was bound for ruin and heading toward establishing a global currency, and that the U.S. would join in the move as early as the G-20 conference next week. China’s suggestion of replacing the U.S. dollar as the world’s reserve currency contained no language about Bachmann’s feared “unified global currency”, but that didn’t stop her from running off at the mouth yet again.

Beck is right about one thing; most Americans have no idea what Bachmann is talking about, but then neither does she.

Most countries hold financial reserves in various foreign currencies, or in gold, and right now a majority of countries hold mostly U.S. dollars. This is not exclusive, as Euros Yen and British Pounds are also popular. Our treasury does not hold our own dollars in reserve, but we do keep a bit of gold.

What the Chinese were referencing is that our currency the de facto global reserve currency, but the International Monetary Fund also issues International Reserve Assets, called Special Drawing Rights (SDR), which governments may use instead. The Chinese suggested that the world move away from dollars. The use of SDR’s, they suggested, would be more balanced and less vulnerable to changing U.S. policies.

How Bachmann made the leap from a mere banking policy suggestion to some global conspiracy is beyond me, and why Glenn Beck would find any value in enabling a kook defies reason. I thought Beck was crazy when he was with CNN, and the move to FOX only deepened his bizarre behavior. As for Bachmann, she should stick to more substantial issues, like Freedom of Choice for light bulbs.