Scrap dollar as sole reserve currency: U.N. report

Scrap dollar as sole reserve currency: U.N. report

www.reuters.com

(Reuters) - A new United Nations report released on Tuesday calls for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value.

(visit the link for the full news article)

The report supports replacing the dollar with the International Monetary Fund's special drawing rights (SDRs), an international reserve asset that is used as a unit of payment on IMF loans and is made up of a basket of currencies.

I would like to connect this story to two topics I've written about during the past few weeks:

Official: IMF Website speaks of New World Currency

Medvedev Pushes Ruble Reserve Currency to Cut Dollar Dominance

If you take a look at the link in my signature, you'll find out that there has been a fierce battle going on for quite some time now between the Dollar and the Euro. Effectively, the US has a monopoly on issuing money without causing inflation. No other country can do so, because fiat currencies are not backed by gold. You would say: the dollar isn't either. That's true, but the dollar is backed by oil - perhaps the most sought after commodity on earth. There is always demand for oil and oil is exclusively sold in Dollars. (guess why alternative energy inventions have never been given a real chance).

The problem is, though, that the US has pushed it over the edge. Nothing is infinite and the US has been spending into oblivion with recent peaks being the costly wars on the Asian continent and the health-care bill.

Debts are sky high and plans are being drawn up to move from phase two (oil-backed Dollar, implemented in the 1970s) to phase three: a world currency controlled by the IMF - which effectively is a tool to spread and maintain US influence abroad and support dollar hegemony.

However, Russia and others don't want another US controlled currency. They are aware of the coming change and are ready to prevent the US from keeping the world hostage for another decade or ten (a new American century). That's why Medvedev is suggesting that there should be a number of reserve currencies and not just the Dollar (or a new US controlled world reserve currency). If Medvedev achieves this, the end of Dollar hegemony would be near and the end of limitless spending too.

What we are going to witness to unfold is a fierce battle between the emerging powers and the EU on one side and the US on the other side. A battle to break Dollar hegemony while the US will try to preserve it.


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

[edit on 30-6-2010 by Mdv2]

Good riddance. I hope the US dollar DOES get removed as the sole reserve currency, it would be good to break down US hegemony.

Originally posted by Yazman
Good riddance. I hope the US dollar DOES get removed as the sole reserve currency, it would be good to break down US hegemony.

So you suport a single world currency because that the game plan.

we need to take down the FED but not to replace it by the IMF because it's the same people pulling the strings. we need a bank own by the american goverment so that it is not forced by the puppet masters to keep fighting anyone that will not except the control of the zionist bankers.

reply to post by Mdv2


Great News, the faster they implament this the better
the US is to bloody careless

What do you expect after our Goldman Sach golden boy Gehiner told the G20 not to depend anymore on the US for their economic grow.

Americans were the biggest consumers of the world, now they lay unemployed and bankrupt, Americas citizens can not longer support the rest of the world with consumerism.

It's coming...
New currency.
New financial system.
New governments.
New leaders.
New way of thinking.
New information and discoveries.
New realities.
ET Disclosure.

The dollar being the international reserve, is the only thing keeping us afloat. Remove that and our currency will only be worth our value. Our value isn't much because we have lost our manufacturing base and our deficits are through the roof. This could only spell one thing for Americans, D I S A S T E R.

--airspoon

I saw this one coming... we all did...

I forgot where, i forgot when (but it was recent) that the world is going to be using a basket currency (Currencies combined) to trade for oil, and ween off the dollar by 2018.

this is what we get when we continue to support this fascist state were in...

when the big global companies make the decisions, make all the wealth, and watch us fight for the remaining crumbs.... yea... change... woot!!!

Originally posted by airspoon
The dollar being the international reserve, is the only thing keeping us afloat. Remove that and our currency will only be worth our value. Our value isn't much because we have lost our manufacturing base and our deficits are through the roof. This could only spell one thing for Americans, D I S A S T E R.

--airspoon

Phase one: Dollar backed by gold
Phase two: Dollar backed by oil
Phase three: Dollar replaced by an IMF (US) controlled new world currency

Keep the dollar. Scrap the UN.

Originally posted by JIMC5499
Keep the dollar. Scrap the UN.

So your government can continue to enslave the world? No thanks.

I found a nice explanation of Dollar hegemony for those interested:

People think the nuclear ambition of Iran is the reason for Iran war. That is only right on Israel's part. For US part, it is petro-dollar.

US dollar is appointed currency in oil trading. Because the oil trade is a huge business, a large amount of dollar is locked up in that trade. That money is called petro-dollar. Why it is so important to US? Because it acts as a long term none interest loan The prosperous US economy partly was based on the petro-dollar - a long term loan without interest. Let me depict it in this way:

US bought a house from Japan (whom represents the oil customers of Iran) for one million dollars. US also bought another house from France (whom represents other oil customers of OPEC) for one million dollars. Japan and France use these two million dollars as fund to buy oil. The money was used in oil trading circle and never back to US. US enjoys the two houses almost free. He doesn't have to pay monthly mortgage payment. Not a penny for interest, nor for principle. All the cost was the printing of a green back paper. However, that green back paper - petro dollar, is still a debit note. How long is it? So far it's more than forty years - since dollar became the appointed oil trade currency.

But suddenly, Iran refuses to accept dollar. Japan has to ask US to exchange that one million dollar into Euro or yen. What US can do is: 1. to get the dollar back by export more merchandise. But he is not able to. He has a trade deficit already. 2. To get the dollar back with gold or foreign currency reserve. But he hasn't that much reserve. 3. To lock up that extra one million dollar in US Bond by raising the interest rate to attract the buyer. But he unwilling to do it. There is a sub-prime crisis in real estate market. Any interest increase will further devalue the house. Feds holds a large amount of real estates in my case, they don't allow such thing to happen. So to solve the problem, they go to the fourth option. 4. By pushing up the oil price.

France (other oil consumption countries) keeps one million dollar as oil trading fund. How much does he need if the oil price doubled? Two million. Thus the one million dollar Japan abandoned is absorbed by France. That's why the oil price jumped like crazy in recent days - a tricky way to keep US dollar from collapsing.

US has to pay for high oil price too. Ordinary people bear the cost. But the high oil price will hurt the economy. The condition won't last long. So war on Iran is unavoidable.

Of course, US is a "democratic" country. It can't start a war because others refusing to use its currency. Then beware of another 911 style false flag attack.

source



[edit on 2-7-2010 by Mdv2]