UN wants new global currency to replace dollar

[PocketProtector]

http://www.telegraph.co.uk/finance/c...ce-dollar.html


UN wants new global currency to replace dollar
The dollar should be replaced with a global currency, the United Nations has said, proposing the biggest overhaul of the world's monetary system since the Second World War.


By Edmund Conway, Economics Editor
Published: 6:45PM BST 07 Sep 2009

Comments 212 | Comment on this article
Crumpled dollar bill - UN wants new global currency to replace dollar
A number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency

In a radical report, the UN Conference on Trade and Development (UNCTAD) has said the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises.

It added that the present system, under which the dollar acts as the world's reserve currency , should be subject to a wholesale reconsideration.


Although a number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency, the UNCTAD report is the first time a major multinational institution has posited such a suggestion.

In essence, the report calls for a new Bretton Woods-style system of managed international exchange rates, meaning central banks would be forced to intervene and either support or push down their currencies depending on how the rest of the world economy is behaving.

The proposals would also imply that surplus nations such as China and Germany should stimulate their economies further in order to cut their own imbalances, rather than, as in the present system, deficit nations such as the UK and US having to take the main burden of readjustment.

"Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability," said Detlef Kotte, one of the report's authors. "But you will also need a system of managed exchange rates. Countries should keep real exchange rates [adjusted for inflation] stable. Central banks would have to intervene and if not they would have to be told to do so by a multilateral institution such as the International Monetary Fund."

The proposals, included in UNCTAD's annual Trade and Development Report , amount to the most radical suggestions for redesigning the global monetary system.

Although many economists have pointed out that the economic crisis owed more to the malfunctioning of the post-Bretton Woods system, until now no major institution, including the G20 , has come up with an alternative.

[Yellowfin]

How about we replace the UN entirely first? It's absolutely sickening that 3rd world slimeball dictators and worthless .5% annual economic growth socialist run European countries have any bearing on telling competent nations of the world how things are going to go.

[General Geoff]

New global currency, eh? I have an idea.



How about gold?

[velkly]

... central banks would be forced to intervene and either support or push down their currencies depending on how the rest of the world economy is behaving.

Am I the only one that sees the foolishness of this?? This least common denominator BS is going to be the downfall of the human race. Man can procreate a better idiot to counteract every "re-alignment".

[FormerUser123]

Am I the only one that sees the foolishness of this??

No, but sadly, the downfalls that we see as citizens and subjects of the world, the powers that be see as their greatest investment in job security.

New global currency, eh? I have an idea.



How about gold?

You mean instead of using something that is artificial and destined for failure, use something that is stable, tangible, and has always been and will always be valuable? But that would make sense, and could actually solve problems. We wouldn't want that, now would we?

[incynr8]

Not sure what would happen to resort back to the gold standard at the least. I think we'd be short at least 5 or 6 trillion though. Gold adjusted for inflation since about 1980 is really 2000ish dollars. Oops that kinda makes it worth half again. I think we're down to 20ish cents on the dollar then.

Gold of course hit 1000 today, another 'excuse' for ammo to go up.

I suppose a UN sanctioned money would picture a bunch of blue helmeted people dancing in a ring formation, with little flowers and a smiling sun shining down. Maybe we can hire the chick with the raisins in the baskets for a photo shoot for the b-side.

This will get huge Russian support, I still believe they're waiting to say 'hey look at all these natural resources we suddenly have to distribute and sell!'

[MostlyHarmless]

New global currency, eh? I have an idea.



How about gold?

Please, not that fiat-currency vs. gold discussion again ... can you spell "deflation"?

I do agree that a new, artificial global currency is BS. But I don't see why the US Dollar should remain any more significant for international reserves and trade than the Swiss Franc or the Euro. Both rather stable currencies, compared to the Dollar.


Jan

[FormerUser123]

I do agree that a new, artificial global currency is BS. But I don't see why the US Dollar should remain any more significant for international reserves and trade than the Swiss Franc or the Euro. Both rather stable currencies, compared to the Dollar.

Because THEY said so.

[archangel689]

And the UN Charter supersedes the US Constitution.


Conspiracy shit is making more and more sense every day! holy crap.

[pyld]

The rest of the world is free not to hold dollars in reserve. Yet they do it, anyway.