MOSCOW, March 19 (Reuters) - China and other emerging nations back Russia's call for a discussion on how to replace the dollar as the world's primary reserve currency, a senior Russian government source said on Thursday. Russia has proposed the creation of a new reserve currency, to be issued by international financial institutions, among other measures in the text of its proposals to the April G20 summit published last Monday. Calls for a rethink of the dollar's status as world's sole benchmark currency come amid concerns about its long-term value as the U.S. Federal Reserve moved to pump more than a trillion dollars of new cash into the ailing economy late Wednesday. Russia met representatives of China, India and Brazil ahead of the G20 finance ministers meeting last week, as the big emerging powers seek to up their influence on decisionmaking globally. Their first ever joint communique did not mention a new currency but the source said the issue was discussed. "They (China) did not formally put forward their position for the G20 summit but unofficially they had distributed their paper regarding the same ideas (the need for the new currency)," the source told Reuters, speaking on condition of anonymity. http://www.reuters.com/article/idINLJ93633020090319
Russia, China, India are forming alliance/union to destroy USA dollar. The situation is similar to World War where countries form alliance for dominant position or new world order.
China and India will starve if they destroy the dollar. Russia will only have short term benefits due to a rise in oil prices. A new currency cannot change the fact the Russia is an Oligarchy and spends virtually no money on its future development. I think the article is a joke and shows how even mainstream media sources are becoming rumor distributors. "Finance Minister Alexei Kudrin told reporters on the sidelines of the G20 finance ministers meeting that it would take up to 30 years to create a new super-currency, suggesting there was no unity in Russia on the issue."
Last time I looked at the Ruble and the Rupee they were taken to the wood shed against the US Dollar. Now they are declaring an open currency war? Please.
This is very interesting.... There is seemingly a dire need for a central base currency of value.... Around this base value currency ....would be the satellite currencies which maintain their own sovereigncy ....meaning that they are free to misbehave or behave based on it's society's wants .....or think that it needs politically....? Let's suppose there was a clean slate base currency.... Just how long would it be before similar conditions would exist again ? The number one issue being the form of government and how economic efficiency is attained.... Just when is it that countries are in equilibrium ? When education, medical, innovation invention, taxes, govt....etc...are the same ? Natural resources alone spell out inequalities from the beginning....let alone other issues.... However an average of the world's existing currencies ....may be a fair number to all....would it not ? Would this value somewhat equilibrate the cost of labor ? And thus would globalization have the same current premise ? Sovereign societies already dump upon themselves the results of their political desires....which are highly conflictive with their economic desires.... And just how will a sovereign country differ ....if it has a base currency ? Will Haiti become any different ? Will China's labors' pay equlibrate to American labor ?etc...etc... ............................................................................................ Perhaps Volcker has it right.... There should be a separation between banking and stock securities.... Stock offers the most efficient capital in the world....no interest non-obligatory debt....with innovation in mind which has its place..... And debt offers a lessor efficient but perhaps more stable capital....which has its proper place.... ............................................................................................ Gold is an inadequate resource....on failure to deliver size alone.... Other smaller currencies are inadequate.... Perhaps the only true option is a worldwide currency average....which is given a separate label.... And thus let each country become what it becomes....