Hi, Because of all the news of banking orientated corruption merging on such a massive scale, it looks like the western hemisphere, US, UK Europe etc doesn't have the moral high ground to affect an international consensus of opinion towards other countries. Eg towards Iran, parts of South America, Russia etc. Do you believe that this factor has the capacity to affect trade flows, for example sanctions from the West are likely to the replaced by trade from China or elsewhere. Or, do you believe this is an irrelevant considerations?
Putin at Davos 2 quotes from same speech "Excessive dependence on a single reserve currency is dangerous for the global economy. Consequently, it would be sensible to encourage the objective process of creating several strong reserve currencies in the future. It is high time we launched a detailed discussion of methods to facilitate a smooth and irreversible switchover to the new model." "Naturally, we must continue to discuss all these issues, including at the G20 meeting in London, which will take place in April."
That's an understatement. Capitalists don't have much ability to take on debates or exercise influence when it comes to morality situations. So they could be in for more surprises.
The proposal seems all too possible. The DX would probably be halved. I believe in the long term that the real loss is going to be many of the good elements of the west financial systems, like the relative liquidity, freedom and wealth of information and press. It's interesting to look at how something like Putins proposal could come about. Even though its in their interests, the Europeans and UK seem too much under Americas wing to side with the likes of Putin. Russia probably has its own problems for now to deal with, and the Asians seem more concerned with stability and surival. It seems theres no real competition to the western model at the moment. It's ironic, the lack of competition is leading to capitialism's corruption.