Catherine Austin-Fitts, former Assistant Secretary of Housing and Urban Development, was a guest on the Dec. 10 Coast to Coast AM radio show to speak on the fiscal cliff, and other economic issues facing the country going into 2013. On the subject of what may be in store for the future of the dollar, Catherine suggested that the government is working towards implementing a new digital currency, or one that would be backed by food instead of the current petro-dollar.

Caller to Coast to Coast: The other night on Coast, an elderly lady called in, in regards to what FDR did in the early 30s. She said they closed the banks, and people were put on an alternative currency called scrip. And seeing how history is repeating itself, what’s your viewpoint on the idea that they are just driving the dollar into the ground to replace it with this alternative currency called the Amero?

George Norry: Well yes, the Amero, which Jerry Corsi has reported on for this program, is a very strong possibility. This currency between Canada, the United States and Mexico… Katherine how realistic?

Catherine Austin-Fitts: Well we don’t see the Amero as being that likely now. Not to say they wouldn’t love to do it if they could. I think what we’re watching, George, is two things. I think we’re watching for a real push for a digital currency number one, and I think we are watching a real push to replace the oil standard behind the dollar with a food standard.

If you look at what it is going to take to create a digital currency, and really make it go globally, we need something other than oil to organize it and put it together, and I think part of the rush to control the food supply, is to literally find that replacement.

And that is important because if you can bring in new energy technology, which you can do, that makes the oil standard that much more important to replace. – Coast to Coast AM, Dec. 10

Since oil has been the primary asset allowing the U.S. to control the world’s reserve currency since 1973, and following the dollar’s removal from the gold standard in 1971, the biggest fear for America has been in losing control over the primary oil distribution chains coming out of the Middle East. However, with Russia becoming a global oil provider in just the past decade, and new Chinese agreements allowing for the sale and purchasing of oil in currencies other than the dollar, the autonomous power of the U.S. to command the primary currency is rapidly waning, and the fight to control the next reserve currency is already underway.

With the world’s population surpassing seven billion people in just the past few years, the need for food is quickly outweighing the need for oil, especially as technologies such as solar, hydro, nuclear, and wind bite into the energy needs oil used to dominate. In October of this year, the United Nations (U.N.) issued a report of massive food shortages expected for 2013, and just over a year ago, the high price and lack of food in Egypt and elsewhere led to the Arab Spring movements, and fall of several Middle Eastern governments.

In the U.S., food has already become a currency unto itself as 47 million Americans now reside on the Labor Department’s SNAP roles, and require government benefits just to purchase basic meals on a daily basis. With the advent of the Electronic Benefit Transfer (EBT) system, the melding of a digital currency backed by food has already been introduced, and is being utilized by nearly one-sixth of the population.

The historic cycle of a purely fiat currency is normally no longer than 40 years, and the dollar in its current form, which is backed by the Saudi oil agreement, will enter that final year in 2013. Thus the need for a transformation of currency is not only desirable as devaluation and massive debt erodes the world’s confidence in the dollar, but absolutely necessary as China, Russia, and a new Asian Partnership seek to bypass the dollar permanently for alternate currencies.

While the concept of a new currency backed by food seems far-fetched, the fact that reliance upon oil in the world is waning at the same time the need for food and new food sources is increasing. Humanity can find alternative sources of energy as they have for thousands of years, but the body cannot sustain itself without food for a long time. Thus controlling food and the means to buy and sell it through a digital currency is not only a potential for the future, it’s already being done on a smaller scale for a large portion of Americans.

Reposted from The Examiner December 11, 2012

Kenneth Schortgen Jr. As a historian in his primary field of study, and an investor in the real world, Kenneth has a keen perspective on all facets of the financial world. He has owned his own business and corporation, and has been an investor in many different markets such as securities, real estate, currency trading.