The Dollar versus the world

America must never accept an international reserve currency.

Last week, the vice governor of ChinaâÄôs Central Bank Hu Xiaolian joined a growing plurality of nations that are seeking to ditch the dollar. For years, the American dollar has been the internationally preferred reserve currency, a means by which governments could support their economy and pay international debts. Faced with the recent economic upheaval, countries relying on the dollar have been suffering, and would love a quick exit. While a concerted unloading of the dollar would have disastrous consequences for the American economy, as long as the world is mired in economic crisis, itâÄôs all talk. Even so, its talk that should be taken seriously; this crisis will not last forever, and countries that are ambitious or worrisome may ultimately seek to replace the dollar with a global currency controlled by the International Monetary Fund. While Americans cannot practically stop this from happening, we can refuse to partake, and we should. Ignoring for the moment the lunacy of surrendering world monetary policy to the manic and draconian IMF, the Chinese argument against keeping the dollar is at best an argument against Americans assuming an international reserve currency: âÄúEconomic woes could entail currency fluctuations and affect the worldâÄôs financial situation.âÄù In short, it is impossible to make policies tailored to your countryâÄôs economic situation when someone else has control of your money. The authority of those talking should turn heads. Besides the vice governor of the Chinese Central Bank, a U.N. panel of economists, the Russian government, and even Treasury Secretary Tim Geithner have expressed sympathy with the idea. Americans, however, should not. A nationâÄôs right to control its monetary policy is every bit as essential as its right to control its domestic or foreign policy, and should be regarded as such.