September 09, 2009
United Nations Report Calls for Global Currency
A number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency
UN wants new global currency to replace dollar
The dollar should be replaced with a global currency, the United Nations has said, proposing the biggest overhaul of the world's monetary system since the Second World War.
By Edmund Conway, Economics Editor
In a radical report, the UN Conference on Trade and Development (UNCTAD) has said the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises.
It added that the present system, under which the dollar acts as the world's reserve currency , should be subject to a wholesale reconsideration.
Although a number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency, the UNCTAD report is the first time a major multinational institution has posited such a suggestion.
In essence, the report calls for a new Bretton Woods-style system of managed international exchange rates, meaning central banks would be forced to intervene and either support or push down their currencies depending on how the rest of the world economy is behaving.
The proposals would also imply that surplus nations such as China and Germany should stimulate their economies further in order to cut their own imbalances, rather than, as in the present system, deficit nations such as the UK and US having to take the main burden of readjustment.
"Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability," said Detlef Kotte, one of the report's authors. "But you will also need a system of managed exchange rates. Countries should keep real exchange rates [adjusted for inflation] stable. Central banks would have to intervene and if not they would have to be told to do so by a multilateral institution such as the International Monetary Fund."
The proposals, included in UNCTAD's annual Trade and Development Report , amount to the most radical suggestions for redesigning the global monetary system.
Although many economists have pointed out that the economic crisis owed more to the malfunctioning of the post-Bretton Woods system, until now no major institution, including the G20 , has come up with an alternative.
from the EconomicPolicyJournal.com
It’s only a first step but, this is big. A new player has entered the ring to compete against the dollar and Treasury securities.
China’s finance ministry said China will issue Rmb6bn ($879m) of bonds in Hong Kong on September 28, in a move to “improve the international status” of the currency and to help mainland companies raise funds in the offshore bond market, according to FT.
Wild Thing's comment.......
Obama has been working to devalue the dollar. He and Geithner etc. have been running up the deficits on purpose, to the point that nobody will want to buy our bonds anymore, rendering the dollar worthless.
It's all deliberate and calculated. And deadly effective.
And the communist-inspired U.N. is plotting our downfall like vultures circling a corpse.
Man the pitchforks. This is not a drill.
Where in the Constitution is this Authority?
Rep Michele Bachmann questioned Tim Geithner and Ben Bernanke on 03/25/09 and took a position rarely seen in Washington DC. In short, her position is that which is enshrined in the 10th Amendment - Where in the Constitution are the Treasury and the Fed given such powers?
Bachmann: What provision in the Constitution could you point to, to give authority for the actions that have been taken by Treasury since March of 08?
Geithner: Oh, uh, the Congress legislated in the emergency economic stabilization act a range of very important new authorities..
Bachmann: Sir, in the Constitution. What in the Constitution could you point to, to give authority to the treasury for the extraordinary actions that have been taken.
Geithner: Every action that the treasury and the fed and the FDIC is.been using authority granted by this bodyby the Congress.
Bachmann: And in the Constitution, what could you point to?
Geithner: Under the laws of the land, of course.
Bachmann: And if I could move to the federal reserve chair, if you could point to what provision in the Constitution that would give authority to the federal reserve - this has been over 10 trillion dollars that were talking about.
Bernanke: I dont know where 10 trillion dollars comes from. The congress has the right to authorize funds, which is what they did in the TARP program, and they have given us in the 1930sthey gave the federal reserve the power for emergency lending as a means of addressing financial crises which is what weve done.
Bachmann: And to the federal reserve chair - Do you believe there are any limits on the authority that the Federal Reserve has taken since last Marchof 08?
Bernanke: The loans we make have to be fully secured and collateralized. We have practical limits in terms of our ability to manage monetary policies. So there are obviously limits. We have reported extensively to the Congress on all the actions we have taken, and the actions weve taken have been solely and entirely for the purpose of protecting the American economy from the effects of financial collapse.
....Thank you Mark for sending this to me.
3rd Mar.Div. 1st Battalion 9th Marine Regiment
1/9 Marines aka The Walking Dead
Posted by Wild Thing at September 9, 2009 06:50 AM
Do they even care what that will do to the economy of the world? You think it's bad now, just wait until they tell you your money is no good anymore and you have to have Euros instead. It's going to further our descent into economic and financial ruin! This is America, people, we're better than this. We don't need a one world currency.
Posted by: Lynn at September 9, 2009 08:27 AM
Destroying our currency will certainly leave America a much weakened country. The sad aspect is that it is being done mostly from inside America by "Americans?". For decades we have been running up deficits by overspending, selling debt to other countries, voting in liabilities for future debt, etc.
Since the Democrats took over Congress the dollar has fallen against the Euro and gold has almost doubled in price. China is buying gold and moving it to Hong Kong. They want Hong Kong to become the new Switzerland for world banking. China would also like to have their currency become the new world standard replacing the dollar. We have been buying Chinese made products and shipping our manufacturing base there for several decades.
Weak and corrupt American leadership and a dumbed down populace have weakened us financially. Those dollars in your bank box or under the mattress have lost much of their value.
Posted by: TomR at September 9, 2009 12:58 PM
Thanks WT. I don't know why I never thought about the deficits and the world currency like that. It makes perfect sense.
Posted by: Jim at September 9, 2009 01:29 PM
Democrats: Taking America down a peg for the common good! Next month come endemic corruption, tribal group politics and begging in the street to survive. How unfair that we should better than the rest of the world!
Posted by: Anonymous at September 9, 2009 04:11 PM
And thehill.com is reporting that the debt ceiling is being raised above $12T.
Posted by: Jim at September 9, 2009 04:47 PM
$peaking of Obamanomics, we went to a yard sale and acquired a bust of Robert E. Lee... I asked if the seller desired CSA money or U.S. currency. "The CSA money has more value!"
Posted by: darthcrUSAderworldtour07 at September 9, 2009 05:27 PM
12 Trillion dollar debt ceiling means nothing. Currently the national debt is 11.8 Trillion. This is just pouring gasoline on an already blazing fire.
I read yesterday China is really concerned about our monetizing the debt, that is, we are buying our own Treasury bills. Which means, if they double the money supply when all is said and done the value of the dollar, on par all things being equal, will be worth half of what it was before they printed the extra money. Meaning hyper-inflation.
The interest on the debt is now at $2.6 Billion dollars per day, currently the interest $326.5 Billion on the 11.8 Trillion we already owe. Where is the money going to come from? But that's not all we have the unfunded Liabilities that no body ever talks about.
The United States on whole is in debt by 100 Trillion dollars. This is never going to be paid off, never.
Posted by: Mark at September 9, 2009 06:11 PM
Thanks Mark. In the exchange with Ms. Bachmann, Bernanke says the loans are fully secured and collateralized. With what??
Posted by: Jim at September 9, 2009 06:20 PM
With the sweat and labor and struggles of our children and grandchildren.
Posted by: Rhod at September 9, 2009 07:00 PM
With paper. Unfunded Liabilities: Medicaid/Medicare-$ 39.7 Trillion; Social Security-$10.8 Trillion; Prescription Drug Liability-$8.5 Trillion.
The really bad news, if this was called in tomorrow every single person in the United States, all 304 Million of us, would owe: $192,019 dollars, each.
If we went to a new currency, a world currency that number would necessarily go higher. This I think is what obama is looking for a Debt so high the people could virtually never retire, and would work for virtually nothing, because it would all got to pay this debt. And we would be slaves to the debt. Hence, pure Socialism.
Posted by: Mark at September 9, 2009 07:08 PM
HUGE thank you to all of you. I learn a lot
from your input.
Posted by: Wild Thing at September 9, 2009 08:19 PM