U.S. Rep. Michelle Bachmann, R-Minn., has introduced a resolution that would bar the U.S. from recognizing any other currency than the dollar as its reserve currency.
Her action comes in response to suggestions from China,Russia and the United Nations that another currency be explored. Even U.S. Treasury Secretary Tim Geithner has admitted he would be open to the idea, although he quickly backtracked when the stock market plunged on his announcement.
“During a Financial Services Committee hearing, I asked Secretary Geithner if he would denounce efforts to move towards a global currency and he answered unequivocally that he would,” Bachmann said. “And President Obama gave the nation the same assurances. But just a day later, Secretary Geithner has left the option on the table. I want to know which it is. The American people deserve to know.”
Although Title 31, Sec. 5103 USC prohibits foreign currency from being recognized in the U.S., the president has the power to engage foreign governments in treaties, and the president is principally responsible for the interpretations and implementation of those treaties according to the Constitution, according to the congresswoman.
As a result, legislation prohibiting the president and Treasury Department from issuing or agreeing that the U.S. will adopt an international currency would need to come in the form of a Constitutional Amendment differentiating a treaty used to implement an international currency in the U.S. from other types of treaty agreements, she said.
“If we give up the dollar as our standard, and co-mingle the value of the dollar with the value of coinage in Zimbabwe, that dilutes our money supply. We lose control over our economy. And economic liberty is inextricably entwined with political liberty. Once you lose your economic freedom, you lose your political freedom,” Bachmann told the Glenn Beck program on the Fox News Channel today.
Her proposal, H.J.R. 41, isn’t complicated:
It is titled: “Proposing an amendment to the Constitution of the United States to prohibit the president from entering into a treaty or other international agreement that would provide for the United States to adopt as legal tender in the United States a currency issued by an entity other than the United States ”
Already with several dozen sponsors, it states:
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled (two-thirds of each House concurring therein), That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States within seven years after the date of its submission for ratification:”
It would add to the Constitution:
The president may not enter into a treaty or other international agreement that would provide for the United States to adopt as legal tender in the United States a currency issued by an entity other than the United States.
According to the Wall Street Journal, the latest voice to endorse an “alternative” to the dollar was the head of a U.N. expert panel discussing solutions to the financial crisis.
Officials from both and China have spoken out on the idea of a new global currency standard, and a U.N. panel published a report that said a new global reserve system would add to the world’s “economic stability and equity.”
According to a report in the Financial Times, the subject could be on the table at the coming G20 summit of leading and emerging nations in London.
Specifically, the U.N. said a new system could “counteract the risk of a rapid fall in the value of the major reserve currency, gutting hard-earned reserve funds.”