The international economic system will evolve with our cooperation or without it. Currently the biggest threat to the dollar is not those who seek alternatives but the U.S. policies that are pushing them in that direction.and this is from the Wall Street Journal article:
Mr. Zoellick said central banks around the world fell down as regulators -- and that the Treasury, which is more accountable to Congress, should be given the authority to regulate big financial institutions, not the Fed.The idea that somehow the solution to America's economic problems can be solved by piling more and more power onto the (bank-controlled) Federal Reserve is reaching the level of pure silliness. The Fed already has too much power and too little accountability for the good of the American economy.
"It will be difficult to vest the independent and powerful technocrats at the Federal Reserve with more authority," he said. "My reading of recent crisis management is that the Treasury Department needed greater authority to pull together a bevy of different regulators. Moreover, the Treasury is an executive department, and therefore Congress and the public can more directly oversee how it uses any added authority."
Mr. Zoellick, among other positions in the U.S. government, served in various posts in the Treasury from 1985 to 1993.
"Central banks failed to address risks building in the new economy," Mr. Zoellick said. "They seemingly mastered product price inflation in the 1980s, but most decided that asset price bubbles were difficult to identify and to restrain with monetary policy. They argued that damage to the 'real economy' of jobs, production, savings, and consumption could be contained once bubbles burst, through aggressive easing of interest rates. They turned out to be wrong."