Is alternative to dollar in works? Plan for 'Special Drawing Rights' creates competition for reserve currency

By Jerome R. Corsi

The administration of President Barack Obama, without congressional authorization, is advancing a plan that could end the use of the U.S. dollar as the world reserve currency by setting up International Monetary Fund Special Drawing Rights to compete.

The move comes as the dollar heads toward a 14-month low of $1.50/euro and as some top fund managers, including some of President Obama's

top financial supporters, worry the decline will continue as long as Obama depends on China to fund trillion dollar budget deficits.

It is Obama's promise to participate in a G20 nations agreement by giving $250 billion to the IMF to set up the alternative reserve currency that now has been documented in the final communiqué of the London meeting, according to the G20 website. 

Plans for the dollar alternative are coming into play just as a former science adviser to British Prime Minister Margaret Thatcher says the real purpose of the United Nations Climate Change Conference in Copenhagen on Dec. 7-18 is to use global warming hype as a pretext to lay the foundation for a one-world government.

"At [the 2009 United Nations Climate Change Conference in] Copenhagen this December, weeks away, a treaty will be signed," Lord Christopher Monckton told a Minnesota Free Market Institute audience recently at Bethel University

in St. Paul.

"Your president will sign it. Most of the Third World countries will sign it, because they think they're going to get money out of it. Most of the left-wing regimes from the European Union will rubber stamp it. Virtually nobody won't sign it," he said.

At G20.org, a report under "The London Summit 2009" reveals the LondonSummit.gov.uk/en/ site where "Point 5" of the final communiqué says the G20 agreed to allocate that amount to Special Drawing Rights in a move calculated to provide the liquidity needed to position SDRs as a dollar alternative in international trade.

"I think the dollar is now under question," billionaire investor George Soros told CNBC during the G20 summit in London, noting that Obama agreed with the G20 to utilize the IMF to fund a "one-world currency" dollar alternative for international trade.

Soros, one of presidential candidate Obama's leading financial backers, also has launched a new attack against the dollar by calling on China to stop pegging Chinese currency to the dollar, a move that would cause the dollar to fall in value.

The Soros-run hedge firm Soros Fund Management continues to bet against the dollar in keeping with the hedge firm's reputation for betting against currencies Soros sees as weak. ....