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To: Fun-da-Mental#1 who wrote (48608)	2/9/2000 7:18:00 AM
From: long-gone	Respond to of 116764

So when the US $ falls & gold moves, it will really move?: More Nations Considering US Dollar As Currency By Bruce Sullivan CNS Staff Writer 09 February, 2000 Washington (CNSNews.com) - With a growing number of countries considering adopting the US dollar as their sole currency, Congress held a hearing on Tuesday regarding legislation that could make "dollarization" more attractive to some nations. Pointing out that interest in dollarization is growing in Latin America, Joint Economic Committee Chairman, Senator Connie Mack (R-FL), said, "The dollarization issue is much too important for the United States to stand by passively. If the US refuses to take a position, dollarization will continue to be considered only by countries in crisis rather than being an option they would consider during relatively stable times." Mack said that he believes that, although dollarization "is not an economic panacea," it will reduce inflation and interest rates in countries that adopt the dollar as their currency. Mack has introduced the International Monetary Stability Act S. 1879 (IMSA) to Congress. The bill addresses the issue of "seigniorage," or the profit a nation makes when they print currency. When a country adopts the dollar, it no longer earns currency profit. Instead, the currency profit is transferred to the United States. The IMSA would rebate 85 percent of that profit back to the adopting country and use the remaining 15 percent to help finance the Federal Reserve. Such a procedure would leave a net profit for the US. Currently, newly independent Panama is the largest nation to use the USdollar for its own currency. According to the World Bank, the US dollar is also the currency of (cont) conservativenews.org\Economics\archive\ECO20000209a.html