UN wants new global currency to replace dollar

[JIDinPhilly]

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

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 611 | Comment on this article

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.



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.

[goofin]

screw the un

[Warpt762x39]

screw the un

I agree. What have they done in their entire history that wasn't a total clusterfuck?

[larrymeyer]

I agree. What have they done in their entire history that wasn't a total clusterfuck?

Well there was the time ! And then there was the time ! OH Shit I forgot

[synergy]

If they don't like the US dollar, how about we don't give them any more "dollars"?

[ehidle]

"managed exchange rates" means "end of free market economies"

The problem is that we have countries like China keeping the value of their currency artificially low, which acts like a black hole sucking the rest of the world's cash - and oil countries manipulating the price of oil to create another black hole for cash.

Instead of forcing the free market economies to stoop to the level of these criminal regimes, these corrupt regimes need to be forced to play by the free and fair rules that the rest of the world lives by.

[synergy]

"managed exchange rates" means "end of free market economies"

The problem is that we have countries like China keeping the value of their currency artificially low, which acts like a black hole sucking the rest of the world's cash - and oil countries manipulating the price of oil to create another black hole for cash.

Instead of forcing the free market economies to stoop to the level of these criminal regimes, these corrupt regimes need to be forced to play by the free and fair rules that the rest of the world lives by.

Sorry, did you say forced to play, by free rules?

Not that I disagree, but consider the irony...

[WhiteShadow]

Fuck that. Sounds like a huge zit just waiting to be popped if we allow this to happen.

[Asmodeus6]

If they don't like the US dollar, how about we don't give them any more "dollars"?

I'm with this guy.

[RaisedByWolves]

I agree. What have they done in their entire history that wasn't a total clusterfuck?

A bunch of them raped that 11yr old African girl pretty good.



Oh wait, That was a clusterfuck!

.