2009 Amero Coin is Out

The new 2009 Amero Coin designed by Daniel Carr is now available for purchase. Carr is the original creator of the Amero Coin and previous years editions have sold out. You can view the secondary market to see how these novelty Amero Coins (no you can't buy real Amero Currency as many net hoaxers will have you believe)have not only held their value but trade at a premium as demand has outstripped supply.

The 2009 Amero features a twist, all the coins are going to be stamped on a Denver Mint coin press. How is this possible you ask? Well a private company was able to acquire a used press from the Denver Mint and refurbish it for the production on the 2009 Amero Coin.

In the coming months you will no doubt see this beautifully designed coin popping up all over the internet.

London stock trader urges move to 'amero'

Says many unaware of plan to replace dollar with N. American currency

In an interview with CNBC, a vice president for a prominent London investment firm yesterday urged a move away from the dollar to the "amero," a coming North American currency, he said, that "will have a big impact on everybody's life, in Canada, the U.S. and Mexico."

Steve Previs, a vice president at Jefferies International Ltd., explained the Amero "is the proposed new currency for the North American Community which is being developed right now between Canada, the U.S. and Mexico."

The aim, he said, according to a transcript provided by CNBC to WND, is to make a "borderless community, much like the European Union, with the U.S. dollar, the Canadian dollar and the Mexican peso being replaced by the amero."

Previs told the television audience many Canadians are "upset" about the amero. Most Americans outside of Texas largely are unaware of the amero or the plans to integrate North America, Previs observed, claiming many are just "putting their head in the sand" over the plans.

CNBC asked Previs whether he thought NAFTA was "working and doing enough."

He replied: "Until it created a lot of illegal immigrants coming across the border. I don't know. You get the pros and cons on NAFTA. For some people it is a good thing, and for other people it has been a disaster."

The speculation on the future of a new North American currency came amid a major U.S. dollar sell-off worldwide that began last week.

Yesterday, the dollar also reached new multi-month low against the euro, breaking through the $1.30 per euro technical high that had held since April 2005.

At the same time, the Chinese central bank set the yuan at 7.0402 per dollar, the highest level since Beijing established a new currency exchange system in 2005 that severed China's previous policy of tying the value of the yuan to the U.S. dollar.

Many analysts worldwide attributed the dramatic fall in the value of the U.S. dollar at least partially to China's announcement last week that it would seek to diversify its foreign exchange currency holdings away from the U.S. dollar. China recently has crossed the threshold of holding $1 trillion in U.S. dollar foreign-exchange reserves, surpassing Japan as the largest holder in the world.

Barry Ritholtz, chief market strategist for Ritholtz Research & Analytics in New York City, in a phone interview with WND, characterized today's downward move of the dollar as "wackage," a new word he coined to convey that the dollar is being "whacked" in this current market movement.

Ritholtz told WND that yesterday's downward move "was a major market correction that points to the risk of subsequent downside to the dollar."

Asked whether he would characterize the dollar's downside move as signaling a possible collapse, Mr Ritholtz told WND, "Not yet."

Ritholtz pointed out market professionals had long looked at a dollar collapse as a "low probability event," but the recent fall suggests "the probabilities have increased of a major dollar correction, or even of a collapse."

U.S. trade imbalances with China have hit a record $228 billion this year, largely reflecting a surging flow of containers from China with retail goods headed for the U.S. mass market.

Secretary of Commerce Carlos Gutierrez is in Bejing leading a trade delegation of more than two dozen U.S. business executives.

"The future should be focused on exporting to China," Guiterrez told reporters in Bejing, noting that this year, U.S. exports to China are up 34 percent on a year-to-year basis, surpassing last year's gain of 20 percent.

One way to improve the U.S. trade imbalance may be to ease up on restrictions of exporting high-tech products and allowing technology transfers to China, a move likely to be politically charged in the U.S.

The decline in value of the dollar will also make U.S. exports more attractive and Chinese exports to the U.S. more expensive.

In February 2007, a virtually unprecedented top-level U.S. economic mission is scheduled to travel to China. Included in the mission are Treasury Secretary Henry Paulson, Jr., Secretary of Commerce Carlos Gutierrez and Federal Reserve Chairman Ben Bernanke.

Previs declined to be interviewed for this article, telling WND in an e-mail he did not want to be quoted directly in any article that may express a political point of
view.

The North American Union

In recent times, the three North American nation-states have increased their economic ties, further accelerating the process with the signing of 1994's North American Free Trade Agreement (NAFTA).

In response to the demands of increasing globalization and shared concerns from abroad, such as the increasing clout of other economic spheres such as the European Union and China, the leaders of the three nations agreed in 2005 to work more cooperatively on shared North American concerns. To this end, they agreed to establish the Security and Prosperity Partnership of North America (SPP).

The Independent Task Force on North America was a project organized by the United States Council on Foreign Relations, the Canadian Council of Chief Executives, and the Mexican Council on Foreign Relations. It was chaired by former Canadian politician John Manley and advocates a greater economic and social integration between Canada, Mexico, and the United States.

It was launched in October 2004 and published two documents: Trinational Call for a North American Economic and Security Community by 2010 (March 2005) and its final report Building a North American Community (May 2005).

The final report proposed increased international cooperation between the nations of Canada, the United States, and Mexico, similar in some respects to that of the European Union.

Some Internet sources claim that this report, despite its own language rejecting a political union, would create a North American Union, which would link the three North American countries into a political union in the model of the European Union.

The North American Union would currently (as of 2007) have a total population of around 440,000,000 citizens. For comparison, the European Union currently (as of 2007) has an estimated population of 493,000,000.

The NAU population would be divided among the three constituent nations as follows:

North American Population By Country

USA 300,050,259
Mexico 107,449,525
Canada 33,098,932


To date, the three governments have taken no official action on the proposal, either to endorse or reject it. Some opponents have alleged that international discussions around economic and security matters fit within the context of the proposal and are designed to pave the way for a formal set of negotiations on the union.

Implementation / Timing for the Amero

Implementation of monetary union for North America with a common currency such as the amero could happen in as early as 10 years, but realistically, more like 20 years out. The concept of the amero currency we believe is in its early stages, a currency debate that may last several years. You know, 20 years ago, former Canadian Prime Minister Brian Mulroney floated the idea of free trade between Canada and the United States. Within 5 years, free trade was a reality followed by the North American Free Trade Agreement that came into law on January 1, 1994.

ON a CNN Larry King show interview in October 2007, former Mexican President Vicente Fox confirmed talks for the proposed idea of common currency for North America, ‘A currency union that may occur in the long term’.

Currency Debate
For Canada, if economic recession takes hold due to currency related movements, only when the people need alternative solutions, then the amero will become more popular for discussion. In America, the amero concept is likely to be unpopular for many at present but this may change as the impact of illegal immigration becomes more of an issue that personally strikes home to many. Further, any decline in the living standard for the average American citizen would help to propel the amero currency union debate. However, our guess is that of the three countries, Mexico is most likely to be in favour of immediate amero discussions.

Here in our currency opinion, we strongly support the concept of the amero currency as the world moves into regional currency blocs.

In an article that we have kept for research purposes, in a December 2000 interview with Canada’s national daily paper, the National Post, world currency icon Robert Mundell states some important currency concepts as follows as we quote his work directly:


Robert Mundell currency thoughts:

“A large currency area is a better cushion against shocks than a small currency area, just as a large lake can absorb the impact of a meteor better than a small pond. The euro (assuming sound monetary policy), will be a much more stable currency area than any of its component national currencies. Similarly, at equal inflation rates, the US dollar is a more effective currency than the Canadian dollar or the Mexican peso, and a North American monetary union, whether based on the US dollar or a new unit (such as Herbert Grubel’s plan for an ‘amero’), would be a more stable unit than any of the national currencies alone.

Adjustment between regions of a common currency area is painless and apparently effortless because it starts to take place as soon as a problem arises and it is implemented smoothly and efficiently until adjustment has been completed. Exactly the same ease of adjustment is possible between areas with firmly-fixed exchange rates. If, for example, Canada formed a monetary union with the United States, or dollarized, or fixed its dollar firmly and irrevocably to the US dollar, the two countries would share the same inflation rate and adjustment between Canada and the United States would be just as easy as it is between California or Puerto Rico or Panama and the United States.

Trade between areas with a common currency or a firmly-fixed exchange rate is higher than that between areas separated by flexible exchange rates because exchange rate uncertainty imposes a cost of trade much like a tariff. If the fifty states of the United States has separate currencies connected by flexible exchange rates, the real income of the United States would plummet. By the same token, if Canada and the United States shared a stable common currency or an irrevocably fixed exchange rate Canada’s real income would soar, closing a large part of the gap between the two countries’ GDP per capita.

When a country firmly fixes its currency to a large and stable monetary leader (such as the dollar or euro areas) it gets a rudder for its monetary policy, a stable rate of inflation, and discipline for its fiscal policy (budget deficits are anathema to fixed exchange rates). In addition they get the bonus of being a member of a large currency area that is a better cushion against shocks.”

A Robert Mundell quote that we note of interest, also from the December 2000 interview with the National Post from Canada:

“If Canada had the same currency as the United States and a genuine free trade area, Canadians would have as high or higher a standard of living as the average American.”

Our best guess is that we are at the beginning of a heightened currency debate that will last several years, perhaps 5 to 15 years, followed by a negotiation phase that may last 3 to 5 years followed by a 2 year currency implementation in similar framework to inception of the Euroland euro.

The concept of an amero currency will move towards a nasty, divisive, ugly and a very political currency debate to take hold within North America. The amero will help to solve a lot of problems, when it is in each country’s benefit, then the amero will emerge. Many American’s will feel their patriotism invaded, their sovereignty under attack, expect a lively currency debate that will rival images of the War of 1812 between the United States and Canada.

To summarize, a common currency and free trade zone will boost the standard of living for Mexico, the United States and Canada with a common currency, the amero. The benefits to our way of thinking greatly outweigh the concerns.

AMERO POLITIC

If an amero monetary union takes hold, Canada would have to abandon an independent monetary policy. So indirectly, its sovereignty over monetary affairs will now be influenced by a new common central bank for the amero zone. Canada with its current ablity to influence economic conditions within our borders will no longer be available with the same direct influence. Canada, a major resource economy has relied on its flexible exchange rate for the CAD to act as a shock absorber during times of low commodity prices to help insulate the economic impact of the commodity cycle. With the amero, this financing option will be mitigated. However, a common currency for Canada has significant economic benefits being further linked directly in with the United States and Mexican markets, a greater wealth gain and an increased standard of living for Canada will likely be the case.

Of recent noteworthy news, there have been reports of illegal Mexican immigration now arriving at the city of Windsor, Ontario. The amero currency in time may help to further alleviate this new trend that is upon Canadian borders.

Of interest, what would be the ideal exchange rate valuation for CAD conversion for amero currency adoption? In our opinion at BankINTRO.com, with the current exchange value of the CAD closer to par with the USD rather than at 65 US cents five years ago, Canada would obviously get a much better bang for the CAD with more purchasing power at today’s exchange rates.

As measured by purchasing power parity as of December 10, 2007, the CAD is 20 percent overvalued to the USD. Long term valuation for the CAD to the USD is at about 90 US cents, a similar GDP/Capita percentage to the United States for Canada at 90 percent.

Drug War – An Example of Political Integration with the Amero
With a common currency, some policies may now be spearheaded by common political force from the North American currency zone political representatives. One such policy that may now be better co-ordinated with a joint strategy following amero adoption is the issue of illegal drug trade and gangs that control its profits. A political synergy to combat illegal drugs may work well within certain elements of political integration. For example, in California today, the production of illegal marijuana in the state according to an article presented by the LATimes.com is that of an industry now larger than the combined agricultural output from the state.

In Canada within the Province of British Columbia, the illegal production of marijuana and trade employs upwards of 150,000 in the province and accounts for the province’s largest industry estimated at 8 billion CAD. However, the BC provincial government is taking prudent action as they have implemented the B.C. Civil Forfeiture Act (May 2006) to seize and sale the proceeds of crime. Those are tax free earnings, drug dealers and producers generally do not file income tax returns reporting their drug earnings. In addition, the minority Federal Conservative government in Canada have just recently announced minimum guaranteed jail times for drug production offences.

In Mexico, it is well known that the illegal drug industry in addition to remittances from the United States is the lifeline to millions in Mexico. Illegal drug production in Mexico for export in America provides for an off the record economic subsidy worth billions. Mexico may benefit more now with illegal drug production being transferred out of jurisdictions like British Columbia where new laws make it less of incentive to produce.

AMERO CANADA

Amero inception for Canada would remove currency volatility and an unnecessary level of currency risk. Canada brings much to the currency table for the amero, secure markets for energy and other valuable natural resources. Today, approximately 85 percent of Canada’s exports are destined for the United States market. Canada relies on America for its national wealth, simple as that.

Canadian management teams have been concerned about the appreciating CAD over the last 5 years from 61.75 US cents in January 2002 to $1.10 USD level in November 2007, 75 percent appreciation of the CAD in relation to the USD. It is time now to let management teams within North America to stay focused primarily on business risk, the amero would eliminate currency risk for those Canadian companies selling goods or services within the North American currency zone. Canadian manufacturing in Ontario and Quebec have been greatly impacted, other industries such as forestry are also feeling the heat. Canadian management teams have been side swiped by currency movements over the last few years, let management teams stay focused on business risk rather than spending their time analyzing currency risk. The appreciation over the last few years of the CAD has cost Canada in excess of 250,000 manufacturing jobs, another 100,000 job losses is forecasted in the next 18 months. Canadian companies have further lost out to their Mexican counterparts over the last few years as the Mexican peso has followed the USD silent crash lock and footstep. So in affect, Mexican companies are stealing market share away from Canadian companies not directly to business smarts, but mainly on currency movements working in their favour.

In a Globe & Mail interview after a Chicago speech in July 2007, Bank of Canada governor David Dodge stated that currency union is ‘possible’ North America one day may embrace it.

Dodge: “only be possible after barriers to the free flow of labour were removed and the structures of the Canadian, American and Mexican economies grew similar”.

The Canadian government has publicly denounced the idea with rejection from Canadian department of finance.

In a December 2007 article reported by cbcnews.ca, incoming Bank of Canada governor Mark Carney said it would be a “mistake” to peg the CAD to the USD.

AMERO CURRENCY

Illegal immigration and energy security are two issues that can be better managed with the introduction of the common amero currency. Today, Canada is an energy superpower as Canada holds the second largest oil reserves in the world in addition to world class natural gas and fresh water reserves. Closer economic ties within an amero currency zone will enable Canada to provide for greater energy security for America. Currently, the Canadian provinces of Newfoundland, Saskatchewan, Alberta and British Columbia are energy producing provinces. Mexico itself is America’s number two supplier of crude oil.

The potential for greater political integration within the area of national security and border control will likely provide for enhanced national security for the United States. At present, those people of Latin American heritage are now the fastest growing population segment within America. An amero currency union will provide Mexico with a significant economic gain. A more prosperous Mexico is the best way to combat illegal immigration, not building a wall. The economic cost of illegal immigration in time may help to move many Americans off the fence to support the concept of a unified currency such as the amero out of sheer frustration.

America does not have a debt problem, current U.S. federal debt to GDP is at approximately 69 percent, in line with several other advanced industrialized countries. Compare this to Japan today which sits at around 140 percent of GDP for their national debt. There are too many pessimists and fear mongers in certain media outlets who have made bashing the USD sport of the day. The fiscal deficit is not a problem, it is actually quite reasonable at 1.5 percent of GDP. The current account shortfall is currently correcting and likely to ultimately to fall to 3 percent of GDP. America is with out a doubt a very powerful economy, a well diversified mega blockbuster economy thriving on entrepreneurial genius that remains the envy of the world. The United States is and will remain an economic superpower even with a mild to deep recession ahead in the short term which is necessary to correct the malinvestments resulting from the domestic mortgage sub prime fiasco. America will prevail, the USD will continue with modest short term exchange valuation pressures, the majority of its current cyclical decline in valuation is now completed.

The USD when measured by purchasing power parity remains undervalued to a large number of currencies including the British pound sterling (GBP), Canadian dollar (CAD), Swiss franc (CHF) to name just a few. If anything, look for a cyclical rebound in the USD in year 2009 following previous consistent bear / bull market cycles in the currency. If the Democrats take control of the White House in 2009, that would be bullish for the USD.

What is likely going forward for the United States? Higher taxes, quite possibly a consumption tax similar to the majority of other advanced industrialized nations. Canada’s current Goods & Services (GST) tax maybe a yardstick for America to follow. Canada’s GST tax has provided the country with fiscal surpluses thus allowing the authorities to lower Canada’s debt to GDP ratio. America is and remains for the most part a relatively low tax nation, a broad based consumption tax would be a huge financial windfall for U.S. federal & state governments as monies will be earmarked for domestic infrastructure upgrades in the decades ahead. A consumption tax will also raise revenue from those segments that do not contribute such as the underground economy.