It's has been in the news a lot lately, and the prospects of a global currency have Max Keiser, Huffington Post blogger and host of BBC World's "The Oracle," giving dire warnings of the consequences if China or other countries were to make a push for it.
Keiser appeared on Al-Jazeera English's March 27 "Inside Story" to discuss the possibilities of a global currency. Host Darren Jordon asked Keiser about the pitfalls of converting to a global currency and Keiser used it as an opportunity to launch into an anti-American diatribe.
"Well, the pitfalls are for the U.S.," Keiser said. "The U.S. has what [former French President Charles] de Gaulle called an extraordinary privilege - they can write checks that they never have to cash. They just print new dollars. This has been going on since Bretton Woods at the end of World War II."
Keiser insisted it was the United States that had a lot to lose and that China, a big player in the global economy, would be reluctant to push for a stronger currency than the U.S. dollar for fear of retribution.
"So, America has everything to lose and they're going to resist the new global currency every way that they possibly can," Keiser said. "China would obviously love to be able to do their business in currencies outside of the U.S. dollar. But look what happened in the Mideast."
The Huffington Post blogger pointed to the invasion of Iraq and America's strong warning to Iran over its nuclear activity.
"Look what happen to Saddam Hussein when he tried to start to trade oil in Euros," Keiser said. "He was bombed and then assassinated by the U.S. Look what happened in Iran when they started talking about trading oil and gas in Euros. Suddenly America is saber-rattling in Iran."
So in Keiser's view, the Chinese won't jump onboard the global currency bandwagon out of fear of the U.S. military.
"So any country looks at those examples and they say, ‘You know if we get out of the U.S. dollar, does this mean that U.S. Marines are going to show up in our backdoor and start to cause mischief?'" Keiser said. "That's a legitimate concern these countries have."
But even the Aljazeera host was skeptical the United States would launch a military response if China made a push toward a global currency.
"OK, well, I'm not so sure the American Marines would turn up on the streets of Beijing, Max," Jordon said.
This is type of insight that might normally be expected from Aljazeera, the Huffington Post or even the BBC. However, the editor-in-chief of the Huffington Post Arianna Huffington is slated to appear as a guest host on the more mainstream CNBC "Squawk Box" on March 31.
Rep. Michele Bachmann, R-Minn., has introduced legislation that would prevent the introduction of a multi-national currency into the American economy on March 25.
