The “Amero”
September 5, 2007
Never have I been so nervous about posting something in my life. But given the lack of discussion around the water cooler about this, it needs to be known.
It’s amazing that something so significant can get so little press. And yet, it’s something that’s happening right under our nose. The “Amero”. What is the Amero? It’s a (as such) hypothetical currency that would be common between the United States, Canada, and Mexico. It’s similar to the “Euro” in Europe, with the Union to boot (the “North American Union,” that is).
Stomach turned yet?
When I first heard about this, I was skeptical. However, the more I research, the more I find. A simple Google search turns up a wealth of information. The more credible sources still herald the North American Union and the Amero as theoretical. The less-than-credible-but-no-reason-they-would-be-wrong sources are claiming that the currency is already being printed and stamped and the North American Union will be in place by 2010.
The main reason major news sources don’t give much credence to the Union coming to pass beyond the theoretical is the fact that the US Dollar is so much stronger than the other currencies in this new Union. The imbalance would be of little incentive to the non-US countries.
However, if one examines the value the US Dollar has in the global economy over the last 5-10 years, it’s very easy to see some alarming trends.
The US Dollar’s value has tumbled. Tremendously. It’s worth less than the Euro and the British Pound (GBP) by quite a bit. It used to be you needed two British pounds to get a US Dollar. The reverse is now true. The GBP is worth over twice as much as the US Dollar.
Who cares?
Well, let me put it this way. Imagine if you had a million dollars. You’d feel rich! Imagine, now, that you had a million pesos instead. Whoopee! That’s about 90,000 US Dollars. Not chump change, but you certainly couldn’t retire with that.
Bottom line, whatever value you place on the money in your savings account, your 401k, your IRA or any other retirement plan today will mean squat in 4-8 years if the US Dollar’s value drops off the face of the planet. The Amero would do just that.
So what can we do?
Unless Congress puts the brakes on the whole North American Union, I’d say the Amero’s pretty much going to happen. We can prepare ourselves, though. The purists will tell you to invest in silver or gold, or other non-currency based investments. That’s a bit much for Joe Shmoe to swallow, I imagine. However, there are far simpler things you can do.
If you have a substantial amount of debt… get rid of it. Do what it takes to pay off your car, your house, that home equity loan you got when rates were low. And please, please get those credit cards paid off. The less you owe when this all goes down, the less it will effect you. And if I’m wrong, and this whole NAU stuff turns out to just be rhetoric… well, hey, you’ll be debt free.
And don’t think you can’t do it. The only barrier between you and being debt free is your own willingness to cut back on the crap you don’t need. Living in servitude to the monthly payment is merely a mindset. Imagine what you could do if you didn’t owe money. The idea that we have to live in debt is the biggest lie in the “American Dream,” and almost all of us have fallen for it hook, line, and sinker.
Amero Links:
http://en.wikipedia.org/wiki/Amero - Wiki Article
http://www.amerocurrency.com - Anti-Amero Website
http://www.spp.gov - The US office pushing the Union
http://www.nsi-ins.ca/english/news_views/oped19.asp - Op Ed on the Amero
http://www.humanevents.com/article.php?id=14965 (Warning - Conservatives on steroids)
Video Links:
Not much, but this is as close as the mainstream media has come to mentioning the Amero: You Tube Video about Amero
September 5th, 2007 at 6:50 pm
Maybe I didn’t read carefully enough, but I didn’t see the reasoning why the dollar would tank with the institution of the Amero. Is there some specific reason why the dollar would drop in that situation? It seems to me that if the USD is the dominant currency in the new union that the Amero would roughly track the USD in value (not that that is a good thing…)
September 5th, 2007 at 7:24 pm
There are a lot of things that could happen that would drop the value of the USD. The first is the disparity between the dollar and the other currencies in the proposed Union. For the NAU to really take off, the USD needs to be weaker. I think what we’re already seeing this in the foreign currency market in the devaluation of the USD to get it in line with the other currencies. So really, we’re seeing the effects before the Amero even comes out.
The other issue is the loss of confidence in the currency. Really, that’s the only thing the USD has going for it. It’s not backed by anything (like gold or silver), but on people’s belief in the US government and the power of the currency. Well, if the Amero becomes the dominant currency of the country, then people will lose faith in the value of USD around the world. You won’t get what you’ve put into all the money in your savings account - if you follow my meaning.
There’s also an issue as people start trading the USD for the Amero. Those who get in early (if not immediately) will feel the least pain. However, those who get in later (which will be the case, I dare say, for most Americans), the USD will be devalued enough from the Amero that they’re money won’t be worth much. That’s because the more people who move from the USD to the Amero, the less the USD will be worth. That will continue to devalue the USD against other currencies as well, as people loose faith in the USD.
The final issue is sovereignty. Just like in our personal lives, where the Country’s money is - so there is it’s heart. If the NAU takes it’s lead from what the European Union has done, the US can pretty much toss it’s sovereignty out the window. The NAU could start making decisions around how we handle national security, who can vote, how our businesses are run, etc. Basically the US becomes “just another state” in a larger government. It’s essentially what our relationship the UN is now, except the UN doesn’t have a currency to back up its operations. So, if we don’t agree with what they rule… who cares? However, the NAU would have more than just jurisdiction rule. It’ll have control over our money! That gives it more power than I care to give away. Especially if I’m not involved in voting for it.
September 5th, 2007 at 9:21 pm
Thanks for the detailed explanation. What I’m wondering about is, how would the US become part of such an organization? Would our politicians vote us into that? I guess, if we see them dumping USD’s then we should be worried. They have just as much (if not more) at stake as we do.
Even though buying gold, etc. may not be necessary, there certainly seems to be some merit in having your assets in some physical form (i.e. your house) instead of cash savings.
Either that or convert your retirement savings into fireworks. Everyone loves fireworks.
September 5th, 2007 at 10:45 pm
For starters, we voted for Bush. Oops. Well, I can’t speak for you, but I know I did. And I’m sorta regretting that. Not that Mr. Hollywood would have been better, but Bush is sure taking us to Hell in a hand basket.
This is the government body that’s pushing for the NAU:
http://spp.gov/
The other thing to realize is that this whole thing is driven by the banks more than the government. Stinky, I know, but I’d bet that when you strip away the nuances, you’d find that the banks have a lot more power over our country than our elected officials.
If you really want to get your blood moving… especially when you realize the NAU’s pretty much been formed (starting in 2005), see what ‘ole Wikipedia has on the subject:
http://en.wikipedia.org/wiki/Security_and_Prosperity_Partnership_of_North_America
September 11th, 2007 at 12:59 pm
To understand this problem a little better I feel that you have to define “money”. Money can be any standard unit of measure tangible or intangible that helps facilitate the trade of real goods. In the US economy, only about 10% of the money supply is physical paper that can be circulated. The vast majority of it is created by the banks in the form of debt representing only your ability to pay off a loan for the real good you have purchased. On one end of the scale would be any time you swipe a credit card to pay for lunch at McDonald’s. On the other end of the scale are your bigger loans: home mortgage, car loans, etc. If you have ever seen the payoff schedule of a fixed 30 year mortgage, you know that you end up spending between 250% - 300% the value of the home that you have bought. I am just using this example due to the fact that it is the most known.
But what does this really mean? Where in the world do we get our money anyway? There is a song by the name of “5 O’clock world” that has the line, “Trading the time for the pay I get…” I love this line because it is so true. Whatever you do for a living: self-employment, salary, hourly wage, etc. you give up some of your time to someone who assigns a value on what you are able to do; your work. Then, of course you use that money pay others who can provide you with real goods that help sustain your life.
When you live in debt to any other person, the money that you pay the interest with must come from your time. If another person can stake a claim on your time, how is that not a form of slavery? Can somebody please tell me?!?
September 11th, 2007 at 1:17 pm
I’ve added emphasis to Mervin’s post above. This is an excellent observation. How many people are stuck in dead-end jobs and unable to move on because they’re enslaved to their debt. Can you imagine what life would be like if you had the option to do what you really wanted to do in life… not what pays the most?
I think if we could do that… live without debt, it’s the closest thing we could do to knowing what freedom really is.
December 12th, 2007 at 2:07 am
I HAVE LIVED IN DEBT AND I DID FIND THAT THE CONCEPT OF FREEDOM WAS LIMITED. I COULD NOT PLAN FOR A FUTURE FOR ME. MY TIME WAS USED TO PAY A DEBT THAT I COULD NOT GET OUT OF. ONCE I ELIMINATED MY DEBT I FOUND OUT WHAT FREEDOM FEELS LIKE. DEBT FORCES YOU TO USE YOUR TIME TO WORK FOR SOMEONE ELSE, EVEN IF YOU ARE SELF EMPLOYED. THE REALITY IS:YOU ARE A SLAVE AND CANNOT WORK FOR YOURSELF.
July 27th, 2008 at 1:03 pm
Debt is volunteer commitment of your future time. I don’t understand your comparisons to slavery as it is basically a contract you willingly commit to. If you don’t want debt, live within your means. But don’t complain about debt being slavery and how terrible it is when you willingly signed up for it. Harsh words, but am I wrong here? Someone please point out my flaw in logic.
July 27th, 2008 at 1:39 pm
I disagree. Slavery by choice is still slavery. We live in a culture that encourages debt to the point of expectation. I can choose to enter into the debt relationship, but I cannot simply choose to walk away until my end of the agreement is paid back. If that’s not possible, then I’m “enslaved” to that debt. If I can’t keep up with a minimum commitment, than my rights a removed - but within that commitment and outside that commitment.
Now, in our country, we have a lot of protections to keep that relationship in check, but think about outside cultures as well. Debt is a vehicle in many places for literal slavery and in many cases the two are synonymous terms.