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(snip) ...However, Canada, the USA and Mexico are hardly the same economically. For a world super-power like the USA to consider diluting its economy with that of Canada and a ‘third world’ nation like Mexico, rife with corruption, seems at first ill-conceived. Unless, of course, the ultimate goal is to create “corporatism” – the merger of big business with big government (and something Mussolini referred to as the foundation of fascism).
U.S. sovereignty is, perhaps, our most precious facet, as defined in our Declaration of
Independence and Constitution. Our sovereignty is part of the formula that makes our Republic the most
unique political and cultural experiment in the history of civilization.
"Most fundamentally however, Mr. Grubel makes the sensible observation that "sovereignty is not
infinitely valuable." (snip) The merit of giving up some aspects of sovereignty should be determined by the gains brought by such a sacrifice. Every nation in the world, even the mighty United States, has traded off
elements of sovereignty to multi-national associations such as the WTO, NAFTA, and the United
BEIJING (Reuters) - Threatened by a "financial tsunami," the world must consider building a financial order no longer dependent on the United States, a leading Chinese state newspaper said on Wednesday.
To that end, the Task Force proposes the creation by 2010 of a North American community to enhance security, prosperity, and opportunity. We propose a community based on the principle affirmed in the March 2005 Joint Statement of the three leaders that "our security and prosperity are mutually dependent and complementary." Its boundaries will be defined by a common external tariff and an outer security perimeter within which the movement of people, products, and capital will be legal, orderly and safe. Its goal will be to guarantee a free, secure, just, and prosperous North America.
While I am certain, that the collapse of the American dollar is being engineered inorder to usher in the Amero, I don't see what Canada would gain by using the Amero. Canada using the Amero would be like jumping on board a sinking ship.
Canada's flexible exchange rates have contributed to poor economic performance. On the one hand, they have cushioned the producers of commodities from the effect of lower world prices. On the other hand, they have caused a reduction in labour-market flexibility and delayed adjustment to the long-term decline in the world prices of natural resources. They also brought high currency-exchange costs and a significant risk premium on Canadian interest rates.
The conversion of existing currencies into the amero will take place at rates that leave unchanged each country's real income, wealth, and international competitiveness at the time of conversion.
Every country will receive the profits from the issuance of ameros used domestically.
Trade among the members of the monetary union will be stimulated by the elimination of the costs of currency trading and risk. There will be greater price stability and, importantly, interest rates in Canada will fall by about one percentage point.
Backed by what? Backed by the collective labor pool of a weakened United States, Mexico, and Canada. That is how you back any paper currency.
The US has gotten itself into too deep of a debt. The only way out is to leverage our debt against the continent's collective labor force.