Single Currency
The proposal on the table does not have street value. It only is to do with reserve value. The person on the street will not find a new currency in hand. The change would only affect the major institutions of global finance, primarily the central banks of the world. The very long term goal might be to end up with a single global currency that does have street value, because the market of currencies is quite a nuisance, if you think about it.
It is like this, ultimately, down the line, in the distant future, you can not have five powers wielding veto at the UN. The General Assembly, redesigned, will have to have all the power. That would make for a much more efficient global political architecture.
Even the current proposal is not meant for immediate implementation. But homework on it has to begin. Now is good time.
Global New Deal
If a stimulus plan is right for America, it is right for the world. The global economy asks for some shock therapy treatment. Something big needs to get done. Gordon Brown has a point.
Global Economic Council
I back the Stiglitz idea. It makes abundant sense. The World Bank and the IMF need to be reporting to the UN.
In The News
New reserve currency idea needs work-German minister Reuters
China's united currency idea divides nations CBC.ca revives a debate that can be traced back at least a half a century. ..... the U.S. greenback, much like the American economy, has fallen into disfavour with foreign investors and governments. ....... "The benefits (of a new currency) are far from certain and this is certainly not a "shovel-ready" project" ...... China is not proposing a single currency that individuals and companies in most countries would use for domestic transactions à la the European Union's euro. ..... an international standard for foreign currency reserves. ........ Right now, many countries hold a large portion of their reserves in U.S. dollars. The thinking is that the American greenback will keep its value against the cash of most other countries ........ the dollar just recorded its worst weekly performance in 24 years, while the euro simultaneously recorded its strongest week since its inception in 1999 ........ special drawing rights, or SDRs. ...... a basket of four currencies — the Japanese yen, the euro, the British pound and the dollar. ........ The Chinese government proposal would expand the number of currencies involved in valuing the SDR
Replacement of the Dollar? BusinessWeek Nobel laureate Joseph Stiglitz explained why he has also advocated the replacement of the dollar ..... the current system of depending on a single currency and the political and economic management of that currency is volatile. It’s inequitable because poor people are lending to the U.S.
Obama dismisses idea of single global currency Reuters dismissed suggestions by emerging economic powers that the world move away from using the dollar as the world's main reserve currency. ...... both China and Russia earlier urged an overhaul of the global monetary system. ...... Chinese central bank chief Zhou Xiaochuan ..... Brazil, India, China, South Korea and South Africa.
Obama dismisses idea of single global currency Reuters dismissed suggestions by emerging economic powers that the world move away from using the dollar as the world's main reserve currency. ...... both China and Russia earlier urged an overhaul of the global monetary system. ...... Chinese central bank chief Zhou Xiaochuan ..... Brazil, India, China, South Korea and South Africa.
No Dollar, No Way: The US Responds to China Wall Street Journal Blogs
About this author: Seeking Alpha
China and the Dollar Wall Street Journal
Indonesia, Malaysia, Thailand Support Call for Global Currency Bloomberg “Trade transactions using one currency that’s dependent on the condition of a single country’s economy is dangerous.” ....... it may benefit developing nations to have an alternative to the dollar. ...... “Asian central banks have been diversifying out of U.S. dollars for some time and they’re concerned about the sustainability of the U.S. financial system.” ....... would prevent “excessive” money printing by any single nation posing a risk to inflation worldwide ....... The U.S. Treasury will issue $2.5 trillion in new debt this year as the government boosts spending to help end a recession ....... One SDR was recently equivalent to $1.50872
Look to BeijingWashington Post A hundred years ago, London would have made sense as the spot where the world's leaders should gather, as they will this week, to grapple with a spreading economic crisis. The city was the early 20th century's nexus of finance and power, and Britain straddled the globe as the only true superpower. But we're in the 21st century now, and the G20 heads of state should not be plotting in the shadow of Big Ben. They should be sitting across from Mao's Tomb, near the Forbidden City, in the meeting halls off Tiananmen Square in Beijing. ........ the Washington-Beijing axis is the most important relationship in the world today ...... if China sells off or stops buying U.S. bonds, the American economy could sink even deeper, leaving us like England at the end of War World II, a broke and broken hegemon, dependent on an upstart power. ........... the rest of the world needs both of them equally. ........ China is no longer as poor as it claims; the United States is no longer as rich as it acts. ...... the world should focus less on the G20 and more on a "G2" of China and the United States. ....... In 2008, before the storm hit, China and the United States accounted for more than half of all global economic growth. ....... emerging economies would provide 100 percent of the world's growth in 2009 ...... contrast with the tepidness of European spending efforts and dwarf the means of other nations. ....... America's political class, long accustomed to military and economic predominance, tends to view any reliance on a foreign power as a sign of weakness. ........... reality allows neither China nor the United States the luxury of their illusions ....... a relative decline in influence, a development Washington considers undesirable and dangerous. ....... Beijing desperately needs a functional U.S. market. ........ China's domestic economy is in many ways fueled by U.S. companies ....... hugely popular KFC franchises ....... attacking one's primary creditor at a time of fiscal need is not particularly smart ......... America must learn to separate its need to be the indispensable nation from its desire to remain powerful and prosperous. Since the end of World War II, there has been no distinction. Today, there is.
G20: Can we really expect a global new deal authored by Gordon Brown? guardian.co.uk
WTO forecasts huge drop in global trade World Socialist Web Site
Indonesia, Malaysia, Thailand Support Call for Global Currency Bloomberg “Trade transactions using one currency that’s dependent on the condition of a single country’s economy is dangerous.” ....... it may benefit developing nations to have an alternative to the dollar. ...... “Asian central banks have been diversifying out of U.S. dollars for some time and they’re concerned about the sustainability of the U.S. financial system.” ....... would prevent “excessive” money printing by any single nation posing a risk to inflation worldwide ....... The U.S. Treasury will issue $2.5 trillion in new debt this year as the government boosts spending to help end a recession ....... One SDR was recently equivalent to $1.50872
Look to BeijingWashington Post A hundred years ago, London would have made sense as the spot where the world's leaders should gather, as they will this week, to grapple with a spreading economic crisis. The city was the early 20th century's nexus of finance and power, and Britain straddled the globe as the only true superpower. But we're in the 21st century now, and the G20 heads of state should not be plotting in the shadow of Big Ben. They should be sitting across from Mao's Tomb, near the Forbidden City, in the meeting halls off Tiananmen Square in Beijing. ........ the Washington-Beijing axis is the most important relationship in the world today ...... if China sells off or stops buying U.S. bonds, the American economy could sink even deeper, leaving us like England at the end of War World II, a broke and broken hegemon, dependent on an upstart power. ........... the rest of the world needs both of them equally. ........ China is no longer as poor as it claims; the United States is no longer as rich as it acts. ...... the world should focus less on the G20 and more on a "G2" of China and the United States. ....... In 2008, before the storm hit, China and the United States accounted for more than half of all global economic growth. ....... emerging economies would provide 100 percent of the world's growth in 2009 ...... contrast with the tepidness of European spending efforts and dwarf the means of other nations. ....... America's political class, long accustomed to military and economic predominance, tends to view any reliance on a foreign power as a sign of weakness. ........... reality allows neither China nor the United States the luxury of their illusions ....... a relative decline in influence, a development Washington considers undesirable and dangerous. ....... Beijing desperately needs a functional U.S. market. ........ China's domestic economy is in many ways fueled by U.S. companies ....... hugely popular KFC franchises ....... attacking one's primary creditor at a time of fiscal need is not particularly smart ......... America must learn to separate its need to be the indispensable nation from its desire to remain powerful and prosperous. Since the end of World War II, there has been no distinction. Today, there is.
G20: Can we really expect a global new deal authored by Gordon Brown? guardian.co.uk
China presses G20 reform plans BBC News a new global reserve currency and reforms of international financial institutions to give developing nations more power. ....... The G20 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the US and the EU. ......... G20 members should also reaffirm their opposition to protectionism and uphold their financial commitments to the world's poorer countries. ......... China wants developing nations to have a bigger say in the International Monetary Fund ...... "Being the world's third-largest economy and the largest foreign reserves holder, China should get its due place in the monetary body." ........ currently dominated by the US and Britain ........ other developing countries, such as Brazil, India and South Africa, would also be demanding a bigger role.
No cheerleader for propping up greenback at G20 summit Canada Free Press the table being set for One World Government ......... The deadly duo, which has blocked all things America at the United Nations ........ both China and Russia posted their priorities for the new global system on their official websites. ...... removing the inherent deficiencies caused by using credit-based national currencies ....... “calling for the creation of a supranational reserve currency to be issued by international institutions as part of a reform of the global financial system” ......... Obama met secretly with Mikhail Gorbachev last week. ....... Joe Biden and Gorbachev had been discussing ways of reducing their countries’ respective nuclear arsenals .... a radical reform of the global financial system ....... calls for national banks and international financial institutions to diversify their foreign currency reserves. It said the global financial system should be restructured to prevent future crisis and proposed holding an international conference after the G20 summit to adopt conventions on a new global financial structure. .............. `Protectionism is the crack cocaine of economics. It may provide a high. It’s addictive and it leads to economic death.’
Touting Her Currency Conspiracy, Bachmann Insists: ‘This Is Not ... Think Progress
Touting Her Currency Conspiracy, Bachmann Insists: ‘This Is Not ... Think Progress
World trade growth 'to plummet 9% in 2009' Sydney Morning Herald
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