UN touts new global currency system

UN touts new global currency reserve system

www.breitbart.com

A UN panel of expert economists pressed Thursday for a new global currency reserve scheme to replace the volatile, dollar-based system and for coordinated steps by rich countries to stimulate their economies.
"A new Global Reserve System -- what may be viewed as a greatly expanded SDR (Special Drawing Rights), with regular or cyclically adjusted emissions calibrated to the size of reserve accumulations, could contribute to global stability, economic strength and global equity," the panel said.

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[edit on 26-3-2009 by sunny_2008ny]

[edit on 26-3-2009 by sunny_2008ny]

China suggested this a few days back. And now the UN is proposing to have global currency basket to replace the dollar as the global currency.

Having some background in economics and finance, I can say the currency valuations in the international markets is a very complicated process. My question is on what basis are you going to choose the new basket? And what if there are still some countries that want to use dollars?

One effect of this move I can see is that the dollar will depreciate in value as it's demand will go down. Euro and Pound will appreciate against the dollar.

Also currency derivatives and swaps will now have to take more facts into consideration during the process of price discovery

www.breitbart.com
(visit the link for the full news article)

I heard the IMF were partial to the idea , the new supposed currency would derive from some kind of stock issue from the IMF , but european countries along , of course , with USA were against it , with china and russia for it . It is an interesting development , time will tell )

There will be no change in the reserve currency for now . It is just making ripples .. making waves , see how the market responds . It is calling time on the dollar thou , in 5 years .. perhaps . 10 years .. very likely .

[edit on 26-3-2009 by Gun Totin Gerbil]

I don't think the USA will ever go for a global monetary program. It simply won't work. I could however see the USA going for it's own 'new' monetary system.

edit to fix spelling

[edit on 27-3-2009 by space cadet]

reply to post by sunny_2008ny


Here's a news report on ths subject

reply to post by warrenb


I found his answer regarding what could be done with their holdings of our dept lacking. He seemed to brush over it. That is the biggest question for some.

There is no doubt the US dollar as the reserve is headed for a close the real question should be addressed about what to do with it after or how to transition it so they can recover their investment and the US economy even if it is surpassed by China will still account for over 1/3 of world trade doesn't simply implode creating another or adding to the global crises.


Edit: Grammar. Note to self more coffee...

[edit on 8-9-2009 by SLAYER69]

I find it interesting that Gold has gone over $1000 just a few days after this announcement.

I suspect tampering and great financial moves by a couple of countries. China and Japan being suspect.

It seems logical to pool the Euro, Yen, Sterling and the Dollar into a single "virtual" basket which would be less liable to dramatic fluctuations. Either that or the Eurozone just expands outwards over time - after all there are more Euro in circulation than the Dollar and it is becomming the currency of choice with some.

Didn't that screw-loose-tin-pot-twit Hugo Chavez suggest a new international currency called the "petro" or "ego" or something?

Regards