UN calls for new reserve currency (Oct 6)

Discussion in 'Economics' started by wildfirepow, Oct 6, 2009.

  1. The United Nations called on Tuesday for a new global reserve currency to end dollar supremacy which has allowed the United States the "privilege" of building a huge trade deficit.

    "Important progress in managing imbalances can be made by reducing the reserve currency country?s 'privilege' to run external deficits in order to provide international liquidity," UN undersecretary-general for economic and social affairs, Sha Zukang, said.

    Speaking at the annual meetings of the International Monetary Fund and World Bank in Istanbul, he said: "It is timely to emphasise that such a system also creates a more equitable method of sharing the seigniorage derived from providing global liquidity."

    He said: "Greater use of a truly global reserve currency, such as the IMF?s special drawing rights (SDRs), enables the seigniorage gained to be deployed for development purposes," he said.
    The SDRs are the asset used in IMF transactions and are based on a basket of four currencies -- the dollar, euro, yen and pound -- which is calculated daily.

    China had called in March for a new dominant world reserve currency instead of the dollar, in a system within the framework of the Washington-based IMF.

  2. New currency.......that was ALWAYS the long term plan THEY have had for us. So many will not believe it until it is too late......well at least I was smart enough to be LONG GOLD all these years! :eek:
  3. Thats why its so good to buy gold and silver now...because not everyone believes it yet. As soon as most people believe it, thats when it will be too late to buy gold/silver.
  4. Well, I don't know about that. You must admit the USA has been abusive in its ever expanding deficits.... we brought it on ourselves... that is, unless $USD destruction is what the puppeteers who control the USA had in mind all along... :(
  5. i agrees one thing i am sceptical about and i hope you might give answer to is what will happen to the gold and silver if the new currency comes in and the gold and silver is not used. namely if the new currency stabilises things and we do not have to use gold and silver for currency. also is there a chance they could take the gold and silver and use it to back up the currency.
  6. If the goal is to have a stable currency that can't be purposely "trashed" like the buck, then gold and silver will be used to and extent to back it. Remember all the chatter about China taking large deliveries of gold from LME last month?? They're ahead of the pack.

    This really is unbelievable news. I wonder how this will affect the markets, especially FX down the road?
  7. achilles28


    Yes, its planned. New World Order. One World Government.

    America will only accept Global Citizenship on Her knees.
  8. wavel


    A drama is required in order to justify change.

    Ofcourse a new approach with relation to our global reserve currency won't in any way affect the denominated primary international currency of exchange for energy contracts, of that I'm certain....
  9. The US has more gold than the other countries, at least on paper, so hopefully that will lessen the trauma from any shift away from the dollar.

    As I may have stated in earlier posts, the enabler for this mess we are now in was Nixon's complete removal of the dollar from the gold standard. However, Gerald Ford and Carter both refrained from completely abandoning fiscal discipline to rob future generations to create prosperity for the present time they were in.

    Then, along came Reagan. Bashers who completely ignore Reagan's fiscal discilpline record compared to the previous presidents can slam me as much as they want. But, REagan was the catalyst for this mess. Without the gold standard to limit the creation of money, REagan said let 'er rip! Reagan's policies of cutting taxes and raising spending stabilized the economy and created prosperity for some, but at the cost of huge peacetime deficits (where peacetime deficits = robbery from future generations assets).

    Presidents and their Congresses after Reagan, with the exception of Clinton, saw how easy it was to be re-elected by cutting taxes and adding more dollars to social programs and defense contracts without having to cut anything. So, they continued to blatantly rob from future generations.

    Guess what? We are now at the start of the generation that was robbed blind since 1981 and the cupboard is bare. Social security is already paying out more in it's bloated benefits now than it takes. The social security trust fund is simply paper IOUs that say the gov't owes that program money. And the boomers, with their retirement funds down significantly as the stock market is down ~ 30% since 1999, are just starting to retire. About 70% or so of major defense contracts are over budget and/or behind schedule, some of them hopelessly. However, very, very few, if any, of them will ever be cancelled because that will mean jobs lost in some congressman's district, which might impact his re-election.

    The main measure of the fiscal insanity since Reagan took office is the exponential growth in the federal debt. In 1981, the year Carter left office, the debt was less than $1 trillion. Now, 28 years later, the debt is approaching $12 trillion despite the fact there has not been a single declared war in that time. The interest alone on this debt is approaching ~ 1/2 trillion per year. No politician will commit political suicide to raise taxes and cut spending to fix the budget.

    In the scenario above, the only way out is an economic solution, and not a political one. That solution is a great deal of inflation. The Fed planned to use the dollar's status as a reserve currency to spread the pain of this inflation around the globe and not just to Americans. However, the supposed meeting of our "allies" and trading partners, to undercut the dollar as the reserve currency, shows that foreign govt's are wise to the Fed's plan. So Americans will have to bear the brunt of paying back the 28 years of "good times" our politicians gave us, mostly alone. If only the Constitution had explicitly and unambiguously stated that gold, and only gold, and not paper, was to be our money, then I'm sure the SCOTUS would not have let Nixon remove the gold standard and we wouldn't be in this mess.
  10. The "PLANNED" financial grid takeover INCLUDED the destruction of the US Dollar as the main stay currency.....THEIR agenda is moving ahead as planned. So let's see what kind of NEW main stay currency discussions start to manifest in the months/years ahead. Incrementalism is the weapon to eventually take out the US Dollar with a new "centralized" replacement.....their plan is going forward step by step.
    #10     Oct 6, 2009