You may have heard some of the noise regarding China (and a growing coalition of export nations) er, ‘exploring’ the inconceivable notion of replacing the US Dollar as the world’s ‘reserve currency’.
It seems some of our ‘creditors’ think we are ‘abusing’ the ability to print dollars rather than buy/trade for them like everyone else has to.
The ‘conventional wisdom’ says there isn’t another nation ‘strong enough’ to replace the US dollar, even as the dollar tumbles towards the basement of the world’s currency markets…but, naturally, these are the same people who print dollars at will.
As long as we have paper and ink, they’ll have all the dollars they need.
Under the category of ‘I wish I said that’, we arrive at tonight’s offering
[Hat tip: Cryptogon ]
UN Wants New Global Currency to Replace Dollar
September 8th, 2009
Around 70.79, two doors emerge: Behind Door #1: The dollar will stage a massive rally/dead cat bounce/short squeeze from Hell. (Don’t ask me how this would happen.) Behind Door #2: A wildcard event; a system transformation. System transformation is lingo from International Relations. It means paradigm change; a break from past normative assumptions about the system and the actors within it. New rules.
There’s nothing but air under 70.79 and I doubt that the Them will just let the rocket sled of doom hit the wall at a thousand miles per hour. They’ll try some kind of nonsense, a New and Improved Global Confetti Currency, or maybe fewer national confetti currencies. The Amero, perhaps. Something of this nature.
—Gold Is Probably About to Put on a Show
Via: Telegraph:
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.
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. [Apparently accusations of mismanagement have gained traction…]
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. [Yaaaay, where do we sign!…oops, the people that are ‘doing us proud’ aren’t done doing us…]
“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.” [Yikes!!!]
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.
Now the UN is jumping on the bandwagon! How long do you suppose it will be before the dollar is no longer the world’s Reserve Currency?
What isn’t discussed (at all) on this side of the Atlantic is how the ‘Shadow Banking System’ er, ‘created’ more money than there was on the entire planet, all by itself…and nobody lifted a finger to shut ‘em down.
During ‘good times’ the global economy is worth roughly 53 trillion dollars, and that’s during ‘good times’. Well, we can only wonder how the ‘Shadow Banks’ managed to whip up $656 trillion dollars worth of Credit Default Swaps in a couple of short years.
Looking at this from a strictly ‘mercenary’ point of view, the global economy is worth a whole lot more 'dead' than it is alive…think about that one as the government, our government in particular, breaks it’s backside to make good on these insane bets…
Worse, the damn Jackals are doing this right under our very noses and there isn’t a damn thing we can do to stop them…for the moment.
Can we stop them afterwards?
Oh yeah, we can stop them cold. All that needs to be done is to ‘demonetize’ the ‘dead presidents’ and the thieves will suddenly be empty handed.
Them and everyone else…that’s what they’re relying on.
There comes a time in everyone’s life where they must ‘take one for the team’ and this is going to be one of those times.
Naturally, there will be ‘allowances’ made to prevent people from tumbling into abject poverty but at the end of the day, if we truly want to end this crisis, hitting the ‘reset button’ is the ONLY option.
Worse, if we don’t do it, our creditors will do it for us.
Thanks for letting me inside your head,
Gegner
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