26 March 2009
Global Currency
Posted by Joy Bischoff under: Constitution in Peril; World Economy .
Perhaps I was wrong when I suggested on a previous blog that the world elite were simply floating the idea of a world currency to get the idea percolating with people, but that it would take a long time to drum up needed support for its implementation. The number of articles I’ve read lately about world leaders jumping on the band wagon with this idea, and now this UN panel, as headlined on the Drudge Report, has made me wonder if this is snowballing. If so, we are going to get plastered by its effects.
Previously, I have referenced Karl Marx and his Communist Manifesto. The fifth of his ten planks is as follows:
5. Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly.
President Obama stated in February, that he wanted his staff to stop talking about nationalizing banks. Fine, take away the label, but the moves by his administration are putting into place the effects of nationalization even if the name is changed to fool the stupid. For Globalization to be complete, the fifth plank simply is taken from a national level to an international level. At that point, the noose is in place and we have lost our freedoms. It will take time to feel the effects that the hand that controls the money rules the world. Marx knew that, Washington and Jefferson knew that and warned us but their words have gone unheeded.
UN panel touts new global currency reserve system
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.
As part of several recommendations to tackle the global financial crisis, the panel also noted recovery would require all developed countries, in the short term, to take “strong, coordinated and effective actions to stimulate their economies.”
And it stressed the need to “lay the basis for the long-run reforms that will be necessary if we are to have a more stable and more prosperous global economy and avoid future global crises.”
The commission, led by US economist Joseph Stiglitz, a frequent critic of globalization and unbridled free markets, is primarily aimed at finding solutions for developing countries.
On the monetary front, Stiglitz, the 2001 Nobel economics laureate, told a press conference here there was “a growing consensus that there are problems with the dollar reserve system.
He noted that such a system was “relatively volatile, deflationary, unstable and (had) inequity associated with it.”
“Developing countries are lending the United States trillions dollars at almost zero interest rates when they have huge needs themselves,” Stiglitz noted. “It’s indicative of the nature of the problem. It’s a net transfer, in a sense, to the United States, a form of foreign aid.”
This week, China’s central bank chief Zhou Xiaochuan suggested the dollar could be replaced as a reserve currency by an International Monetary Fund (IMF) basket comprising dollars, euros, sterling and yen, saying it would not be easily influenced by individual countries.
But the UN panel warned that a two (or three) country reserve system “may be equally unstable.”
It said a new Global Reserve “is feasible, non-inflationary and could be easily implemented, including in ways which mitigate the difficulties caused by asymmetric adjustment between surplus and deficit countries.”
Stiglitz said his panel’s experts were currently trying “to lay out the conceptual framework of how this might be done.”
The issue of the world currency reserve is expected to be raised at the April 2 summit of the G20 club of developed and emerging economies.
On Wednesday IMF managing director Dominique Strauss-Kahn said that talks on a new global reserve currency to replace the US dollar were “legitimate” and could take place “in the coming months.”
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