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  1. #1
    Join Date
    Jan 2008
    Florida Panhandle

    Exclamation $$$NEW PUSH FoR GLOBAL CURRENCY$$$

    by P.Parameswaran P.parameswaran 1 hr 20 mins ago
    PITTSBURGH, Pennsylvania (AFP) The embattled US dollar is expected to come under scrutiny at a summit of developing and industrialized nations following China-led calls to review its role as a reserve currency.
    Dollar under scrutiny at G20 summit - Yahoo! News
    The dollar issue is bound to surface at the two-day meeting in Pittsburgh as US President Barack Obama and other leaders of the Group of 20 economies debate a new framework for tackling the so called global "economic imbalances" blamed for fuelling the latest financial crisis.

    "Though not clear how the plan would be enforced, it would involve measures such as the US cutting its deficits and saving more, China reducing its reliance on exports and Europe making structural changes to boost business investment," analysts at French bank Societe Generale said in a report.

    Some argue that the financial crisis resulted from imbalances between savings and investment in major economies, which have led to large current deficits, as evident in the United States, and surpluses, as enjoyed by China.

    Beijing was the first to call for a new global currency as an alternative to the US dollar as the US deficit rocketed -- the White House estimates it could reach nine trillion dollars over a decade.

    Chinese Premier Wen Jiabao expressed concern as early as March over the safety of his country's huge US bond holdings now worth more than 800 billion dollars, making it the largest creditor to the United States.

    Then, Chinese central bank governor Zhou Xiaochuan, who supervises more than two trillion dollars worth of dollar reserves, the world's largest, raised the stakes by calling for a new reserve currency in place of the dollar.

    He wanted the new reserve unit to be based on the SDR, a "special drawing right" created by the International Monetary Fund, drawing immediate support from Russia, Brazil and several other nations.

    "These countries realize that they would suffer losses if inflation eroded the value of the dollar securities they own," said Richard Cooper, a professor of international economics at Harvard University.

    But he said there were no feasible alternatives to the US dollar as a widely used international currency, discounting even IMF's synthetic SDR currency, comprising a basket of the dollar, euro, yen and the pound.

    "The dollar will remain the dominant world currency, thanks to the stability of our political system and the rule of law that isn't a feature of many other economies," said Irwin Stelzer, director of economic-policy studies at the Washington-based Hudson Institute.

    Some groups, he said, were buying euros and other currencies from time to time, "but not in amounts that threaten the dollar's primacy."

    Even the Chinese are stuck with nearly a trillion dollars worth of US bonds and are not likely to drive down the value of that hoard by selling large amounts of dollar-denominated assets, Stelzer said.

    But what is baffling analysts is that a key UN agency -- the United Nations Conference on Trade and Development, or UNCTAD -- has joined the chorus of calls for a new reserve currency.

    An UNCTAD report this month endorsed a proposal that IMF-issued SDRs "could be used to settle international payments."

    Until the current global economic crisis, SDRs issued by the IMF have been used by IMF member nation states "primarily as a reserve account to support international trade transactions, not as an alternative international currency available to settle international debt transactions in danger of default," said political scientist Jerome Corsi in "Red Alert," a global financial newsletter.

    China, meanwhile, continues to flex its muscle.

    It has proposed that the G20 economies consider setting up an international wealth fund that would invest a portion of its members' current-account surpluses in developing economies.

    "These comments reinforce their desire to diversify out of dollars and to encourage other nations to do so as well," said Kathy Lien, chief strategist for Global Forex Trading.

    A few Chinese deals were recently seen accepting payment in the currency of the buyer rather than in dollars, especially with Brazil, which the Asian giant is wooing as a future oil supplier.

    In addition, China -- the first nation to sign an agreement to buy IMF bonds -- took the unsual step of paying for the papers equivalent of 50 billion dollars with its yuan currency rather than dollars, which Beijing uses for much of its trade and other foreign transactions.

    Carl Weinberg, chief economist of High Frequency Economics, said he was surprised by the move but did not see it having any major impact on the dollar.

    "The transaction can now be clearly seen as a political move by Beijing to get more traction in the governance of the IMF, not as an effort by the PBOC (Chinese central bank) to reduce the share of dollars in its reserve asset," he said.

  3. #2
    A one world currency. Wonder how long before we will be required to have a universal number before we can buy or sell? I would not be surprised if Obama is working on that too.
    By faith Noah,being warned of God of things not seen as yet, moved with fear,prepared an ark to the saving of his house;by the which he condemned the world,and became heir of the righteousness which is by faith Heb.11:7

  4. I understand their position. Obama is printing money like there is no tommorow. His economic hero is FDR, who devalued the US dollar to reduce out debt to the international community, our National Debt is out of control, we have an ever growing budget deficit and hugely costly policies on the horizon, and no sign our leadership is going to become fiscally responsible any time soon. Why should the international community trust the dollar? I don't.

    I support and international currency based on something, gold, silver, wheat, something tangible as a base. I would prefer the US go back to some sort of currency base.
    You can have peace. Or you can have freedom. Don't ever count on having both at once.
    Robert A. Heinlein

  5. Quote Originally Posted by HK4U View Post
    A one world currency. Wonder how long before we will be required to have a universal number before we can buy or sell? I would not be surprised if Obama is working on that too.
    The technology is already in place. Microchipping is already being done to pets in the USA. In some parts of the world, such as the UK, LEOs are already being chipped.

    It is called the VERICHIP.

    We must resist mandatory chipping at all costs.


  6. #5
    well of course the UN will be pushing for it.. and while their at it.. one world government anyone?
    You can have my freedom as soon as I'm done with it!!!

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