| Habla Economese? - Feministing By Courtney The whole show they did in february devoted to this topic was dumbed down to the extreme, but it was great, because they explained every single term you only sort of knew the meaning to. It's impossible to listen to this .... While having a global reserve currency standard hardly solves all the problems of global currency stability, it does do a damn sight better than the gold standard. That said, the gold standard is not all that Mises promoted. Of course, considering he ... Feministing - http://www.feministing.com/ |
| Where Is the Global Economy Heading? - Economix Blog - NYTimes.com By By Simon Johnson Consider that the US ceased publishing the M3, in 2006, to hide how many dollars are being printed and delivered to the world economy, but now countries are diversifying away from the dollar as reserve currency. .... There is a strong coherence in nature functioning stating that any single problem can accept or admit many sorts of solutions with variable results. Lost and Found department works pretty well on many places returning lost objects because they were not ... Economix - http://economix.blogs.nytimes.com/ |
| Sdr Currency - Sdr Imf ?! - Finance Blog By aslanbash A country participating in this system is necessary, the official reserves of the government or central bank holdings of gold and currencies widely accepted, which could be used to purchase the national currency in the world, ... Finance Blog - http://finance.varolmak.com/ |
| SDRs - a new world reserve currency? MoneyWeek - London,UK The US dollar is currently the world's reserve currency, ie, it's held by many governments as part of their foreign-exchange reserves. ... See all stories on this topic |
| implode-explode.com - Implosion News Pick-ups: A 'Copper Standard ... A 'Copper Standard' for the world's currency system? (telegraph.co.uk). Search IEHI news archive: Enter your search terms. Web, IEHI. Submit search form. 2009-04-16. The beauty of recycling China's surplus into metals instead of US bonds is that it kills so many birds with one stone: it stops the yuan rising, without provoking complaints of currency manipulation by Washington; metals are easily stored in warehouses, unlike oil; the holdings are likely to rise in value ... Implode-Explode Heavy Industries... - http://implode-explode.com/ |
| Where Do U.S. Dollar ETFs Go From Here? | ETF Trends By Tom Lydon The United Nations believes that in order for the world's economy to stabilize, the world should move to a collection of currency, rather than one. Overall, here are some comments about the health of the U.S. dollar: ... ETF Trends - http://www.etftrends.com/ |
| What Is A Reserve Currency? | Daily Markets By FT The topic of replacing the US Dollar as the world's reserve currency crops up more often than the debate on who's going to manage Chelsea. So why not grab a. ... For a long time the Euro was muted as the king-in-waiting, but with the global recession exposing the extreme difference in fortunes across Europe that one's gone a bit quiet. Forex cartoon. Not quite a global reserve currency, but the Gulf States have had their own petro-currency on the drawing board for years. ... Daily Markets - http://www.dailymarkets.com/ |
| About this author: Seeking Alpha - New York,NY,USA The best way for the world to secure monetary stability is to move to a Single Global Currency, managed by a Global Central Bank within a Global Monetary ... See all stories on this topic |
| The US doesn't name China a currency manipulator RGE Monitor - New York,NY,USA China's exports to world and US imports from China are both falling. Chinese reserve growth — read the amount of dollars China has to buy to keep its ... See all stories on this topic |
| Spot o' tea guardian.co.uk - UK ... one GOP congressman from Alabama allege that he knows of 17 socialists in Congress; a congresswoman saying Obama wants a one-world currency, ... See all stories on this topic |
| TheStockAdvisors.com - Ormat (ORA): Invest in geothermal power By Steven Halpern "We continue to recommend the PowerShares DB U.S. $ Index (NYSE: UUP)," says Jack Crooks. In World Currency Alert he explains why the US dollar will stay the world's main currency. ... TheStockAdvisor - http://www.thestockadvisors.com/ |
| China reduced its dollar holdings in February RGE Monitor - New York,NY,USA The rise in the fall corresponds with the expansion of the Fed's swap lines in the fall, as the world's central banks cooperated to provide a "global" ... See all stories on this topic |
| DailyKenn.com By Endiana.com Someday there will be one, universal currency. It will require a central bank. There will be a chairman of that bank. And that person will control the world. — Kenn Gividen. Do I believe in a flat income tax? Absolutely. ... endiana.com - http://endiana.blogspot.com/ |
| Boffy's Blog: Imperialism, Industrialisation, Trade and Sub ... By Arthur Bough The IMF's, SDR's, which were supposed to become world currency or 'paper gold' are a total failure. Hence the increase in the price of real gold. Changes in the Vehicle of Imperialism Alongside changes in the structure of the orld ... Boffy's Blog - http://boffyblog.blogspot.com/ |
| Global Markets and Foreign Policy » Blog Archive » Paul Krugman's ... By Josh Hopkins The World Affairs Blog Network ... Hence Mr. Zhou's proposal to move to a new reserve currency along the lines of the S.D.R.'s, or special drawing rights, in which the International Monetary Fund keeps its accounts. ... Global Markets and Foreign Policy - http://globaleconomy.foreignpolicyblogs.com/ |
| The Financial New World Order: Towards a Global Currency and World ... By Terry Melanson The article continued in stating that, "There is now a world currency in waiting. In time, SDRs are likely to evolve into a parking place for the foreign holdings of central banks, led by the People's Bank of China. ... Illuminati Conspiracy Archive Blog - http://www.conspiracyarchive.com/Blog/ |
| The Financial Crisis: The United States And Europe After The Storm ... By Council on Foreign Relations If you are the reserve currency for the world, and you are not linked to anything that is, let's say, objective, there is the dilemma between preserving the value of the reserve currency for the world, and somehow satisfying your national economic ... the imaginary currency of Keynes, but should we use the SDR? Should we amend the charter of the IMF in order to allow not only the U.S. and Japan as the main shareholders, but also the others to have their share of the SDRs? ... CFR.org - Democracy and Human Rights - http://www.cfr.org/ |
| Paddy Power Trader | What Is A Reserve Currency? | Spread Betting Blog By FT The topic of replacing the US Dollar as the world's reserve currency crops up more often than the debate on who's going to manage Chelsea. So why not grab a coffee and join me in getting to grips with reserve currencies, SDRs and the ... Paddy Power Trader Spread Betting Blog - http://www.paddypowertrader.com/blog/ |
World's Thoughts On One World Currency- 16/April/2009
Reform the International Monetary System
Zhou Xiaochuan - Chairman, Monetary Policy Committee of the People's Bank of China
The outbreak of the current crisis and its spillover in the world have confronted us with a long-existing but still unanswered question,i.e., what kind of international reserve currency do we need to secure global financial stability and facilitate world economic growth, which was one of the purposes for establishing the IMF? There were various institutional arrangements in an attempt to find a solution, including the Silver Standard, the Gold Standard, the Gold Exchange Standard and the Bretton Woods system. The above question, however, as the ongoing financial crisis demonstrates, is far from being solved, and has become even more severe due to the inherent weaknesses of the current international monetary system.
Theoretically, an international reserve currency should first be anchored to a stable benchmark and issued according to a clear set of rules, therefore to ensure orderly supply; second, its supply should be flexible enough to allow timely adjustment according to the changing demand; third, such adjustments should be disconnected from economic conditions and sovereign interests of any single country. The acceptance of credit-based national currencies as major international reserve currencies, as is the case in the current system, is a rare special case in history. The crisis again calls for creative reform of the existing international monetary system towards an international reserve currency with a stable value, rule-based issuance and manageable supply, so as to achieve the objective of safeguarding global economic and financial stability.
I. The outbreak of the crisis and its spillover to the entire world reflect the inherent vulnerabilities and systemic risks in the existing international monetary system.
Issuing countries of reserve currencies are constantly confronted with the dilemma between achieving their domestic monetary policy goals and meeting other countries' demand for reserve currencies. On the one hand,the monetary authorities cannot simply focus on domestic goals without carrying out their international responsibilities��on the other hand,they cannot pursue different domestic and international objectives at the same time. They may either fail to adequately meet the demand of a growing global economy for liquidity as they try to ease inflation pressures at home, or create excess liquidity in the global markets by overly stimulating domestic demand. The Triffin Dilemma, i.e., the issuing countries of reserve currencies cannot maintain the value of the reserve currencies while providing liquidity to the world, still exists.
When a national currency is used in pricing primary commodities, trade settlements and is adopted as a reserve currency globally, efforts of the monetary authority issuing such a currency to address its economic imbalances by adjusting exchange rate would be made in vain, as its currency serves as a benchmark for many other currencies. While benefiting from a widely accepted reserve currency, the globalization also suffers from the flaws of such a system. The frequency and increasing intensity of financial crises following the collapse of the Bretton Woods system suggests the costs of such a system to the world may have exceeded its benefits. The price is becoming increasingly higher, not only for the users, but also for the issuers of the reserve currencies. Although crisis may not necessarily be an intended result of the issuing authorities, it is an inevitable outcome of the institutional flaws.
II. The desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.
1. Though the super-sovereign reserve currency has long since been proposed, yet no substantive progress has been achieved to date. Back in the 1940s, Keynes had already proposed to introduce an international currency unit named "Bancor", based on the value of 30 representative commodities. Unfortunately, the proposal was not accepted. The collapse of the Bretton Woods system, which was based on the White approach, indicates that the Keynesian approach may have been more farsighted. The IMF also created the SDR in 1969, when the defects of the Bretton Woods system initially emerged, to mitigate the inherent risks sovereign reserve currencies caused. Yet, the role of the SDR has not been put into full play due to limitations on its allocation and the scope of its uses. However, it serves as the light in the tunnel for the reform of the international monetary system.
2. A super-sovereign reserve currency not only eliminates the inherent risks of credit-based sovereign currency, but also makes it possible to manage global liquidity. A super-sovereign reserve currency managed by a global institution could be used to both create and control the global liquidity. And when a country's currency is no longer used as the yardstick for global trade and as the benchmark for other currencies, the exchange rate policy of the country would be far more effective in adjusting economic imbalances. This will significantly reduce the risks of a future crisis and enhance crisis management capability.
III. The reform should be guided by a grand vision and begin with specific deliverables. It should be a gradual process that yields win-win results for all
The reestablishment of a new and widely accepted reserve currency with a stable valuation benchmark may take a long time. The creation of an international currency unit, based on the Keynesian proposal, is a bold initiative that requires extraordinary political vision and courage. In the short run, the international community, particularly the IMF, should at least recognize and face up to the risks resulting from the existing system, conduct regular monitoring and assessment and issue timely early warnings.
Special consideration should be given to giving the SDR a greater role. The SDR has the features and potential to act as a super-sovereign reserve currency. Moreover, an increase in SDR allocation would help the Fund address its resources problem and the difficulties in the voice and representation reform. Therefore, efforts should be made to push forward a SDR allocation. This will require political cooperation among member countries. Specifically, the Fourth Amendment to the Articles of Agreement and relevant resolution on SDR allocation proposed in 1997 should be approved as soon as possible so that members joined the Fund after 1981 could also share the benefits of the SDR. On the basis of this, considerations could be given to further increase SDR allocation.
The scope of using the SDR should be broadened, so as to enable it to fully satisfy the member countries' demand for a reserve currency.
Set up a settlement system between the SDR and other currencies. Therefore, the SDR, which is now only used between governments and international institutions, could become a widely accepted means of payment in international trade and financial transactions.
Actively promote the use of the SDR in international trade, commodities pricing, investment and corporate book-keeping. This will help enhance the role of the SDR, and will effectively reduce the fluctuation of prices of assets denominated in national currencies and related risks.
Create financial assets denominated in the SDR to increase its appeal. The introduction of SDR-denominated securities, which is being studied by the IMF, will be a good start.
Further improve the valuation and allocation of the SDR. The basket of currencies forming the basis for SDR valuation should be expanded to include currencies of all major economies, and the GDP may also be included as a weight. The allocation of the SDR can be shifted from a purely calculation-based system to a system backed by real assets, such as a reserve pool, to further boost market confidence in its value.
IV. Entrusting part of the member countries' reserve to the centralized management of the IMF will not only enhance the international community's ability to address the crisis and maintain the stability of the international monetary and financial system, but also significantly strengthen the role of the SDR.
1. Compared with separate management of reserves by individual countries, the centralized management of part of the global reserve by a trustworthy international institution with a reasonable return to encourage participation will be more effective in deterring speculation and stabilizing financial markets. The participating countries can also save some reserve for domestic development and economic growth. With its universal membership, its unique mandate of maintaining monetary and financial stability, and as an international "supervisor" on the macroeconomic policies of its member countries, the IMF, equipped with its expertise, is endowed with a natural advantage to act as the manager of its member countries' reserves.
2. The centralized management of its member countries' reserves by the Fund will be an effective measure to promote a greater role of the SDR as a reserve currency. To achieve this, the IMF can set up an open-ended SDR-denominated fund based on the market practice, allowing subscription and redemption in the existing reserve currencies by various investors as desired. This arrangement will not only promote the development of SDR-denominated assets, but will also partially allow management of the liquidity in the form of the existing reserve currencies. It can even lay a foundation for increasing SDR allocation to gradually replace existing reserve currencies with the SDR.
World's thoughts on One World Currency : 16/April/2009
| ONE WORLD, ONE MONEY? By Solve et Coagula ONE WORLD, ONE MONEY? Creation of the euro, among other developments, has increasingly focused attention on the question of fixed exchange rates versus flexible exchange rates. Even in Canada, seminars and conferences have been held ... Every currency crisis has been connected with pegged rates. That was true most recently for the Mexican and East Asian crisis, before that for the 1992 and 1993 common market crises. By contrast, no country with a flexible rate has ever ... able2know - New Topics - http://able2know.org/newtopics/ | ||||||||||||
| News Kontent: A 'Copper Standard' for the world's currency system? By kevin The beauty of recycling China's surplus into metals instead of US bonds is that it kills so many birds with one stone: It stops the yuan rising without provoking complaints of currency manipulation by Washington; metals are easily ... News Kontent - http://news.kontentkonsult.com/ | ||||||||||||
| OpEdNews » With cool poise Obama delivers dagger to American people They want to crash it and the dollar so they can introduce the amero as the currency of the U.S., Canada & Mexico.. THen once the NAU is established, the amero will then be traded in for the new one world currency. ... OpEdNews - OpEdNews.Com Progressive,... - http://www.opednews.com/ | ||||||||||||
Greatest Economic Disaster in Recorded History By dr@dailyreckoning.com.au (The Daily Reckoning) In fact, when I wrote last year that the dollar would cease to be the world's reserve currency much faster than anyone expects, I'm sure no one took me seriously. But since then, we've heard two of the world's leading powers - China and ... The Daily Reckoning Australia - http://www.dailyreckoning.com.au/ | ||||||||||||
Ohaiyo Business Magazine » More Bad News for the Trade Bubble The U.S., utilizing its privileged position as the world currency, has one get out jail free card, which it is playing now. This crisis is more like to end the way that Brad says above--a retreat from the globalization of the financial ... Ohaiyo Business Magazine - http://ohaiyo-business-travel.com/ | ||||||||||||
Obama's New World Order - 911truth.ch - News - 911truth.ch ... Trying will "collapse the currency's exchange rate," divert huge amounts of revenue and property to creditors, and produce "a new kind of post-capitalist (unjust, unsustainable) non-production/consumpton economy" too gruesome to imagine or tolerate. Iceland's financial crisis is the result of .... In her latest quarterly review, she predicts that "Obama will do more to help bankers achieve centralized control and one world government than any (previous) US politician. ... 911truth.ch ::::: The 9/11 Truth... - http://www.911truth.ch/ | ||||||||||||
Gotta Snake by the Tail | American Conservative Daily By David L Lamon No matter how you slice it, the dollar's demise could be just around the corner and a new worldwide currency take shape, which is I believe the intended purpose by the globalist or New World Order or One-World Government, whichever you ... American Conservative Daily - http://www.americanconservativedaily.com/ | ||||||||||||
Ask Experience Project: Should we have a World Government. Erase ... Open Question. Should we have a World Government. Erase the borders.? Imagine, there are no borders. We all share one currency. There is no one allowed to start war...cause we all own everything. We live, we share it all. ... Latest Questions at Experience Project - http://www.experienceproject.com/question-answer.php | ||||||||||||
| Connecting the Dots in the New World Order: The Bank of England ... By DotConnector It was always a monetary financial empire, as much a parasite on the people of Great Britain as the rest of the world. The idea of the Victorian's British Empire bringing civilisation to the darkest parts of the world is one that needs real reconsideration by many ... Their aim is to destroy the last vestiges of British sovereignty; for a hyper-inflated and hyper-devalued Sterling to be replaced by a single, global, currency, under a single world fascist government. ... Connecting the Dots in the New... - http://dotconnectoruk.blogspot.com/ | ||||||||||||
A rather impressive list of videogame currency | GamesRadar The interest rate of Bison's currency being lower than that of the rest of the world, domestic assets will be sold in favour of foreign ones, and the real exchange rate will fall, causing the Bison Buck to depreciate in value, ... GamesRadar - Xbox 360 Features - http://www.gamesradar.com/xbox360/features | ||||||||||||
Meet the new masters. | The Economic Populist By commongood Zhou Xiaochuan, the central bank governor, piqued the interest of metal buffs last month by calling for a world currency modelled on the "Bancor", floated by John Maynard Keynes at Bretton Woods in 1944. The Bancor was to be anchored on 30 ... One thing is clear: Beijing suspects that the US Federal Reserve is engineering a covert default on America's debt by printing money. Premier Wen Jiabao issued a blunt warning last month that China was tiring of US bonds. ... The Economic Populist - Speak... - http://www.economicpopulist.org/ | ||||||||||||
| G20 leaders seal $1tn global deal (BBC) « A Different Kind of Blog By Enkill_Eridos The IMF has been one of the biggest beneficiaries of the G20 summit. The resources it has to help troubled economies will be increased to $500bn. An overdraft facility will also be increased to $250bn (in the IMF's currency, .... To the people that think we need to be insulated from the rest of the world and any way of trying to work with other countries to get us as human beings through this Global Crisis is trying to set up a One World Government I have a sentence that ... A Different Kind of Blog - http://tothewire.wordpress.com/ | ||||||||||||
| New World Order University Forum » Obama's foreign policy By Director If President Obama is going to make peace with China and Russia, one would expect him to embrace a new global currency, make nice with Iran, stop threatening NATO expansion, and withdraw troops from around the world and close bases. ... New World Order University Forum - http://newworldorderuniversity.com/ | ||||||||||||
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| Washington Times - Washington,DC,USA Mr. Zhou, in short, called for replacing the dollar as the world's reserve currency with the International Monetary Fund's Special Drawing Rights (sdrs), ... See all stories on this topic | ||||||||||||
UN economic summit to discuss currency reserves Reuters - USA "There is the whole problem of the creation of special drawing rights (SDRs) and perhaps doing away with the dollar as the currency for international ... See all stories on this topic | ||||||||||||
HK's Yam says wider int'l reserve curren Life Style Extra - UK ... world's main reserve currency by the IMF's Special Drawing Right, and for the SDR's basket of currencies to include currencies of all major economies. ... See all stories on this topic |
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