I love the UN

Discussion in 'Financial Cents' started by Clyde, Mar 19, 2009.


  1. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    U.N. panel says world should ditch dollar
    Wed Mar 18, 2009 11:16am EDT
    By Jeremy Gaunt, European Investment Correspondent

    LUXEMBOURG (Reuters) - A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.

    Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.

    Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.

    "It is a good moment to move to a shared reserve currency," he said.

    Central banks hold their reserves in a variety of currencies and gold, but the dollar has dominated as the most convincing store of value -- though its rate has wavered in recent years as the United States ran up huge twin budget and external deficits.

    Some analysts said news of the U.N. panel's recommendation extended dollar losses because it fed into concerns about the future of the greenback as the main global reserve currency, raising the chances of central bank sales of dollar holdings.

    "Speculation that major central banks would begin rebalancing their FX reserves has risen since the intensification of the dollar's slide between 2002 and mid-2008," CMC Markets said in a note.

    Russia is also planning to propose the creation of a new reserve currency, to be issued by international financial institutions, at the April G20 meeting, according to the text of its proposals published on Monday.

    It has significantly reduced the dollar's share in its own reserves in recent years.

    GOOD TIME

    Persaud said that the United States was concerned that holding the reserve currency made it impossible to run policy, while the rest of world was also unhappy with the generally declining dollar.

    "There is a moment that can be grasped for change," he said.

    "Today the Americans complain that when the world wants to save, it means a deficit. A shared (reserve) would reduce the possibility of global imbalances."

    Persaud said the panel had been looking at using something like an expanded Special Drawing Right, originally created by the International Monetary Fund in 1969 but now used mainly as an accounting unit within similar organizations.

    The SDR and the old Ecu are essentially combinations of currencies, weighted to a constituent's economic clout, which can be valued against other currencies and indeed against those inside the basket.

    Persaud said there were two main reasons why policymakers might consider such a move, one being the current desire for a change from the dollar.

    The other reason, he said, was the success of the euro, which incorporated a number of currencies but roughly speaking held on to the stability of the old German deutschemark compared with, say, the Greek drachma.

    Persaud has long argued that the dollar would give way to the Chinese yuan as a global reserve currency within decades.

    A shared reserve currency might negate this move, he said, but he believed that China would still like to take on the role.
     
  2. RouteClearance

    RouteClearance Monkey+++ Site Supporter

    So, we take and replace all the nations fiat currencies that are becoming virtually worthless because of the printing press, replace with one single fiat currency that can become worthless overnight because of the printing press. What will this solve in the long run. When you look at the current performance of all the nations currencies. not a one is consideres stable by any means due to the fact of having nothing of actual value to back any of them up. What would prevent the NWO from running their press 24/7? There is only one solution to our economic huricane this world is facing. Let the market cleanse itself, regardless of the socalled "to big to fail" bs that everyone belive in.
     
  3. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    This really sounds like a new version of unsecured debt, a basket of securitized (or not) currencies like the mortgage fiasco. Yeah, it will all average out until the crash --
     
  4. Tango3

    Tango3 Aimless wanderer

    INHO Here's the key:
    ""There is a moment that can be grasped for change," he said.

    Like that hillary( or was it rahm emanuel?) comment "we shouldn't waste a great crisis..." far as I'm concerned she should be stripped of her office by her suffering constituents, She's looking forward to crisis to advance an agenda. [beat][beat]
     
  5. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    Or has an agenda to advance a crisis. Really tired of the a$$hole-isms coming out of our beloved seat of government. [loco]
     
  6. Revelation1412

    Revelation1412 Monkey++

    Love the U.N.?
     
  7. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    Facetious . . . most know me well enough on this board to know how I really feel.

    FA⋅ce⋅tious   [fuh-see-shuhs] Show IPA
    –adjective
    1. not meant to be taken seriously or literally: a facetious remark.
    2. amusing; humorous.
    3. lacking serious intent; concerned with something nonessential, amusing, or frivolous: a facetious person.
     
  8. kansasrebel

    kansasrebel Monkey++

    Just how bad will that screw us over when they drop the dollar. How far will it collapse. Will we become the next Zimbabwe?
     
  9. Tango3

    Tango3 Aimless wanderer

    Thats the "trillion dollar question" aint it?[dunno][dunno]

    I Love how "U.N blue" stands out clearly against foliage[beat][gun]
     
  10. RouteClearance

    RouteClearance Monkey+++ Site Supporter

    What this is about is getting the US dollar replaced as the worlds reserve currency, problem is, there are no other currencies stable enough to replace the dollar.

    Another thing, if the dollar is replaced as the worlds reserve currency, well, to quote Karl Denninger, "Goodnight Uncle Sam".
     
  11. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    [fnny] One of these days, Clyde may take his tongue from outa his cheek. But we hope not --
    [troll] [coffee2]
     
  12. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    I turned 40 this last december. I am officially a "grumpy old bastard". I think we can hang out more often, ghrit, since you are one, too...

    No, I don't mean that as name calling, just a little humor. If taken seriously, I will have to ban myself for name calling which is not allowed by the C o C
     
  13. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    Welcome to the age of anciency, fellow GOB. From here on, the only things I take seriously are the inventories of beans and bangsticks.

    [beer]
     
  14. Tango3

    Tango3 Aimless wanderer

    49 the17th, I've got lots of grumpy practice in already, aint as hard as it looks:[dunno]
    ('TIL the viagra kicks in any way [ROFL]
    :):oops: ).
     
  15. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    Ooops. Poor ol' GOB Clyde's thread has been hijacked by some other GOBs.

    I guess I would still like to know how Geithner thinks that eliminating a negative balance in the checkbook will be eliminated by making it more negative. And the UN seems to be thinking along the same lines. Creating a new "reserve currency" based on a wad of other currencies which are deteriorating because of their dependency on the USD seems weird. And now parts of the G20 are ruminating over what that wad of other currencies should be in a particular region. Can you say toxic assets?

    So, if I read the MSM correctly, there may be a third world (as yet undefined) reserve "currency" most likely south American, possibly another in Africa, one geographically centered on northern India (if they buy into the Russian plan) and another one or two in Europe. Warm up your calculators, boys, the exchange rates are going into unstable gyrations. Today's ruble against tomorrow's peso. Speculators gone wild.
     
  16. Tango3

    Tango3 Aimless wanderer

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