Unraveling the Amero Currency Scheme

The Amero: A Hypothetical Common Currency

The concept of the Amero introduces a new idea into the economic world: a common currency that would serve to replace the Mexican Peso, as well as the U.S. and Canadian Dollar. In order for the Amero to become a reality, it would require the establishment of a North American Union that would join the economies of the U.S., Canada, and Mexico. This notion is modeled after the successful Euro and European Union experiment. While the Amero has been a topic of discussion among academics, no concrete proposals have been presented by lawmakers in any of the three countries involved. As a result, the Amero is not currently traded in the interbank market.

The Origins of the Amero

The idea of the Amero was first introduced by Herbert Grubel, an economics professor at the Fraser Institute. Grubel suggests that combining the currencies of the U.S., Canada, and Mexico would lead to increased trade by simplifying transactions that involve multiple currencies and diminishing exchange rate risks. Moreover, Grubel argues that the Amero could lower borrowing costs and eliminate wage arbitrage, a practice where companies hire labor from countries with devalued currencies to take advantage of cheaper labor. However, despite these potential benefits, the Amero system faces several drawbacks.

Challenges and Concerns

One of the primary obstacles to the Amero system is the lack of public support for a common currency among citizens of the three countries involved. With the Euro facing notable challenges, such as rising unemployment rates and reduced capital formation in weaker economic partners of the European Union, enthusiasm for a common currency has waned. Additionally, Americans hold a belief in American Exceptionalism, making it difficult for them to accept a shared currency that would require relinquishing the dollar and following regulations set by a governing body outside of the U.S. Congress.

Furthermore, the diverse nature of the U.S., Canadian, and Mexican economies poses a significant barrier to the implementation of the Amero. The U.S. Dollar holds a dominant position as the world's primary reserve currency, while the Mexican Peso is considered an emerging market currency, highlighting the economic disparities that would need to be addressed in order for the Amero to become a reality.

The Alleged Existence of the Amero

Despite conspiracy theories claiming the existence of the Amero, no tangible evidence supports these claims. Rumors suggesting the circulation of the Amero were propagated by individuals like Hal Turner, whose credibility has been called into question due to his criminal history. Claims of an Amero coin have been debunked as false, as they were traced back to online images of spoof coins.

Conclusion: The Unlikelihood of the Amero

Given the current social, economic, and political climates, the proposal and implementation of the Amero seem unlikely. While the idea of a common currency may have its merits, the practical challenges and lack of support from the public make the Amero an improbable prospect for the foreseeable future. Nevertheless, like all ambitious ideas before it, the fate of the Amero remains uncertain, with the potential for unexpected developments in years to come.