Breaking: •UN Calls for New Global Reserve Currency to Fix Broken `Confidence Game'

Discussion in 'Wall St. News' started by ByLoSellHi, Sep 7, 2009.

  1. Incredible! They've come right out and admitted the whole plan on preventing an outright global depression is based on bolstering "confidence," and that the USD is unable to fulfill a role as a global reserve currency!

    This is the most incredible announcement I've ever seen regarding the level of economic disease in the global economic infrastructure.

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aSp9VoPeHquI

    •UN Calls for New Global Reserve Currency to Fix Broken `Confidence Game'

    UN Says New Currency Is Needed to Fix Broken ‘Confidence Game’
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    By Jonathan Tirone

    Sept. 7 (Bloomberg) --
    The dollar’s role in international trade should be reduced by establishing a new currency to protect emerging markets from the “confidence game” of financial speculation, the United Nations said.

    UN countries should agree on the creation of a global reserve bank to issue the currency and to monitor the national exchange rates of its members, the Geneva-based UN Conference on Trade and Development said today in a report.

    China, India, Brazil and Russia this year called for a replacement to the dollar as the main reserve currency after the financial crisis sparked by the collapse of the U.S. mortgage market led to the worst global recession since World War II. China, the world’s largest holder of dollar reserves, said a supranational currency such as the International Monetary Fund’s special drawing rights, or SDRs, may add stability.

    “There’s a much better chance of achieving a stable pattern of exchange rates in a multilaterally-agreed framework for exchange-rate management,” Heiner Flassbeck, co-author of the report and a UNCTAD director, said in an interview from Geneva. “An initiative equivalent to Bretton Woods or the European Monetary System is needed.”

    The 1944 Bretton Woods agreement created the modern global economic system and institutions including the IMF and World Bank.

    Enhanced SDRs

    While it would be desirable to strengthen SDRs, a unit of account based on a basket of currencies, it wouldn’t be enough to aid emerging markets most in need of liquidity, said Flassbeck, a former German deputy finance minister who worked in 1997-1998 with then U.S. Deputy Treasury Secretary Lawrence Summers to contain the Asian financial crisis.

    Emerging-market countries are underrepresented at the IMF, hindering the effectiveness of enhanced SDR allocations, the UN said. An organization should be created to manage real exchange rates between countries measured by purchasing power and adjusted to inflation differentials and development levels, it said.

    “The most important lesson of the global crisis is that financial markets don’t get prices right,” Flassbeck said. “Governments are being tempted by the resulting confidence game catering to financial-market participants who have shown they’re inept at assessing risk.”

    The 45-year-old UN group, run by former World Trade Organization chief Supachai Panitchpakdi, “promotes integration of developing countries in the world economy,” according to its Web site. Emerging-market nations should consider restricting capital mobility until a new system is in place, the group said.

    The world body began issuing warnings in 2006 about financial imbalances leading to a global recession.

    The UN Trade and Development report is being held for release via print media until 6 p.m. London time.

    To contact the reporters on this story: Jonathan Tirone in Vienna at jtirone@bloomberg.net
    Last Updated: September 7, 2009 09:52 EDT
     
  2. Pascal

    Pascal

    They think that by creating an organization to manage currrencies worldwide will do better than the free market. That is the same argument for the creation of the federal reserve system. By manipulating the money supply, imbalances are created.

    This is a power grab by BRIC, nothing more. He who controls the money has the power.
     
  3. My question is what powers of enforcement does the UN have?

    It is a damning conclusion they have come to - agreed.

    But what "hammer" do they have to compell the US?

    They are like a mall security guard.
     
  4. ipatent

    ipatent

    Bingo.

    What the exploiters really want is a world central bank they can front run from somewhere like Dubai with no securities law enforcement.
     
  5. Sodajerk

    Sodajerk

    Give them control of the world's money, and they won't care who makes its laws.
     
  6. I find it funny that Brasil and India are compared to China and Russia. They do not have any reasonable army for starters, as India was occupied by 50 sailors couple of centuries ago as history tels us :D
     

  7. They won't need an army if they can get a piece of control in the global money supply.
     
  8. Why can't they create any "reserve" currency they want by buying in any ratio that they desire of any actual established currency or percious metal or basket of grains or petrol that they wish?

    The answer is that they could. Another know nothing article from bloomberg.


     
  9. True. The blame is disingenuous as the free-market doesn't price absolute risk. It prices risk relative to interest rates - which are grossly distorted by the FED and other Central Banks. Which is why the Free Market seemingly "doesn't work".

    Whatever douche authored that report intends to replace one central bank with another. Except this one will be "fair", and controlled by the UN (via the World Bank/IMF, which are controlled by the very Western Central Banks that created this disaster in the first place).

    Geitner and Obama will likely endorse this. Bernacke will push the Dollar off the cliff to kill its reserve status. These guys are not working for America. Now why would these guys opt for a single currency & set-rates, unless for more control over a system they already run into the ground?
     
  10. Read between the lines.

    They want coordinated debasement. And Control over the global money supply. How else can the UN "centrally manage" exchange rates !

    Money supply = exchange rates.

    UN powergrab to manage the global money supply.

    Of course, it won't be the UN who administrates. It'll be the World Bank and IMF. Who are owned by Western Central Banks. Who are owned predominately by Mega Global Banks.

    So when A owns B who owns C. Who really owns C?

    So why do Private, National Banks want a takeover of the global money supply ?

    I wonder, which banks have the most say at the IMF, and World Bank? That would give a clue. Probably American.

    Could be a great new vehicle for Wallstreet to engineer global calamities with, and profit from. Just one angle, I'm sure...
     
    #10     Sep 7, 2009