'Amero' Coin for North America Not Likely, Economists Say; Still Fuels Conspiracy Theories

WASHINGTON — Former Mexican president Vicente Fox predicted recently that all countries in the Americas would eventually have a common currency, much like European nations now have the Euro.

With conspiracy theories running rampant on the Web about a secret plan to create a North American Union with an "Amero" currency, the comment in a TV interview sent chills through some conservative circles.

Economists say, however, that the idea of a regional currency for the United States, Canada and Mexico — however tantalizing for some in their ranks — is highly unlikely, primarily due to domestic politics.

Peter B. Kenen, a senior fellow for international economics at the Council on Foreign Relations, a think tank based in New York, said it would never happen.

Kenen, who authored an upcoming book — "Regional Monetary Integration" — said that a handful of economists have proposed a common currency for North America, but that most dismiss the notion.

One major problem is that the three countries would need to have a central bank. In other words, the United States would need to agree to have Mexicans and Canadians on the Federal Reserve Board and give those countries approval rights over the fed chair, Kenen said.

"Would the chairman of the Federal Reserve system have to appear before the Canadian parliament and the Mexican parliament?" he said. "That is something which I think the U.S. Congress would look at as absolute madness."

The prospect raises major issues of national sovereignty, said Peter Cappelli, director of the Center for Human Resources at the University of Pennsylvania's Wharton School.

Cappelli said that it would likely be economically advantageous for the United States, Canada and Mexico to move towards a common currency, but that it's "nearly impossible" politically.

A large number of Americans have a problem with the United States participating in the United Nations, he said. "So the idea that we would lose or give up at last part of our control over fundamental issues of money supply which affect the economy would be pretty hard for the country to swallow."

The idea of the Amero has been around for some time.

In 1999, Canadian economist Herbert G. Grubel wrote a paper titled, "The Case for the Amero: The Economics and Politics of a North American Monetary Union."

He envisioned bank notes and coins with an "Amero" symbol on one side and national emblems on the other that would "preserve important symbols of national identity."

More recently, Robert A. Pastor, a professor of international relations at American University, published a paper in 2005 which argued for North American economic integration.

Pastor proposed that the three countries establish a North American Advisory Council with 15 "distinguished individuals," five from each country. The council would "encourage the three governments to respond to a continental vision."

Pastor, who previously held several posts with The Carter Center in Atlanta, also said that the three countries should create a North American Investment Fund in which to deposit $20 billion a year for a decade for work on roads, ports, railroads, and communications to connect the southern part of Mexico with the North American market.

Proponents of economic integration and a regional currency for the Americas also point to the Euro, which is generally regarded as a success.

Thirteen countries now share the Euro, including Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Slovenia and Finland. Two more countries — Cyprus and Malta — will adopt the currency next year.

Proponents say that a regional currency facilitates travel and tourism, opens markets, and increases economic strength and stability, making a region as a whole more competitive.

The academic discussion about North American integration has made its way to the political stage.

Last month, GOP presidential candidate Rep. Ron Paul of Texas told a group of Evangelical Christians that the United States is working on eliminating its borders "with a North American Union" and "the introduction of an Amero currency."

At a summit earlier this year, leaders from the United States, Canada and Mexico were asked about the alleged secret plan for a borderless North American Union.

Canadian Prime Minister Stephen Harper made fun of the suggestion, saying that his opponents have speculated on "superhighways through the continent, maybe interplanetary."

More seriously, he said that the three countries have an "enormous commercial relationship" and that they were discussing such things as the rules for manufacturing jelly beans.

"Is the sovereignty of Canada going to fall apart if we standardize the jelly bean? You know, I don't think so," he said.

White House spokeswoman Dana Perino was also asked last month about a plan to create a North American regional coin.

"There is no plan under way to create such a currency," she said.

Mark Krikorian, executive director of the Center for Immigration Studies, a think tank that advocates stronger immigration controls, said that the conspiracy theories should not diminish real concerns about a direction in public policy towards open borders.

Krikorian says that "business and political elites" in the United States and Mexico share a "post-sovereignty" world view tied to globalization that concerns many Americans.

Even if the Amero never becomes an economic reality, it has entered the realm of pop art.

A well-regarded artist in Loveland, Colo., designs and sells Amero coins of different denominations.

One of the coins has Pocahantas on one side and an eagle with the words "Union of North America" engraved on the other.

The artist, Daniel Carr, posted the following statement on his Web site, in response to numerous inquiries: "My goal with these coins is not to endorse a Union of North America or a common 'Amero' currency. I fully support the United States Constitution, and I would not welcome (in any form) a diminishment of its provisions. I expect that these coins will help make more people aware of the issue and the possible ramifications."

On the Web:

Council on Foreign Relations: www.cfr.org

Daniel Carr coins: www.dc-coin.com