U.N. panel says world should ditch dollar

[stampede2873]

Reuters Article

UN and Globalism. Whata pair!!!

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.

 

[MILF Man]

How about the world ditch the U.N.! Now that sounds like a much better idea! These people are useless assholes and I'm sick to death of them!

 

[Facetious]

^ At long last, the Milf Man pops his head into political fray. :hatsoff:
Return more often, why dontcha ? !




Re: U.N. panel says world should ditch dollar:

In the words of Janet Waco (was it ?)

"They have no controlling legal authority"

Seriously, what a bunch of pompous assholes over at the UN.
They should be deported to Zimbabwe.


at once !

 

[Torre82]

No comment.. 'cept to say that the land the U.N. resides upon was donated by the Rockefeller's. Take that as you will.

 

[stampede2873]

No comment.. 'cept to say that the land the U.N. resides upon was donated by the Rockefeller's. Take that as you will.

Don't get me started on the Rockyfellas, and the Rothschilds, or the Morgans. All the old families that created the Trilateral Commission and the Bilderbergers, all to create one unified (under their dominance) world order.

I could go on, and on until I vomit about it. Really I could.

 

[Will E Worm]

It is a good moment to move to a shared reserve currency.

Reserve?

Federal Reserve?

The biggest parasite feeding on America since 1913.
Unconstitutional and all who were involved and remain involved are traitors.

Taking this country from the greatest creditor nation to the greatest debtor nation.

How about the world ditch the U.N.! Now that sounds like a much better idea! These people are useless assholes and I'm sick to death of them!

 

[Latterer]

Not fond of the UN, but considering how much money the US treasury is going to be printing, I think their suggestion a good one.

 

[Facetious]

Not fond of the UN, but considering how much money the US treasury is going to be printing, I think their suggestion a good one.

Would you care to elaborate ?

Not to worry, I only agree or don't. No lingering fuss. :hatsoff:

 

[ChefChiTown]

I hate how people talk about the "value" of a dollar.

Do you know how much a dollar bill was worth in 1947? A dollar.
Do you know how much a dollar bill is worth today? A dollar.

 

[stampede2873]

I hate how people talk about the "value" of a dollar.

Do you know how much a dollar bill was worth in 1947? A dollar.
Do you know how much a dollar bill is worth today? A dollar.

Tis true... what we are dealing with is: inflation vs. purchasing power. It's not the value of the dollar, its how much you can purchase with it.

 

[Latterer]

I hate how people talk about the "value" of a dollar.

Do you know how much a dollar bill was worth in 1947? A dollar.
Do you know how much a dollar bill is worth today? A dollar.

Yes, but what does a dollar buy? In 1945, 32 million bought an aircraft carrier, now its about 1 billion for a comparable carrier. Our dollar is worth less than 1/100 of what it was 50 years ago. England, by keeping a gold standard, kept constant the true value fof its currency for the nineteenth century.

Facetious,
With US deficit spending accelerating from Bush's ******* of debt spending for the war, I think other nations will start looking at nations with lower debt to gdp ratios as potentially better sources of currency reserves. I think India and China are about to see a further influx of foreign capital into their economies and debt issues, and that will drive down the dollar's value in the long run. As China and the middle east are now our two largest creditors (with relation to government bonds), i think their historic fiscal conservatism will dictate that their investors shift funds from government bonds in more heavily indebted countries which are also driving out manufacturing, namely the US. In short, without keeping production, I don't think countries are going to believe the US can pay its debts in the long term.