Reserve Currency: A fiat currency that is held in significant amounts by governments and nations throughout the world.
Fiat Currency: Essentially paper money declared by a government as legal tender.
A couple of days ago China's Finance Minister, backed by the IMF said (paraphrasing) that the world should move towards a new reserve currency. That is, foreign governments like China, Japan, Eurozone, Latin America, Russia should lessen their reliance on the US dollar as their main currency reserve.
Well Michelle Bachman of Minnesota either purposely made up her own story or completely misunderstood the IMF and the Chinese Finance Minister, because she is off to the races on one of her 'I love America more than you' crusades, as if the rest of us are just here out of obligation.
President Obama, Tim Geithner and Ben Bernanke have clearly stated they have no intention of replacing the dollar (our fiat currency) with one global currency. Nor has any other major economic power even suggested this (remember China suggested reserve currency).
But the facts didn't stop Michelle. As usual she created a pretty cool strawman and proceeded to show the rest of us that her 'True Blue Americanisim' exceeded the rational populations by leaps and bounds. She has called for a bill that would essentially make it illegal to replace the dollar, again even though no one ever suggested otherwise.
Ignorance is not cool, be cool.
