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.

A number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency.

From The Telegraph
By Edmund Conway, Economics Editor

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.

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China Alarmed by US Money Printing

The US Federal Reserve's policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy.

From The Telegraph
By Ambrose Evans-Pritchard

Cheng Siwei, former vice-chairman of the Standing Committee and now head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing".

"We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como.

"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.

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Bring Back the Gold Standard

From the Brussels Journal

Does the financial crisis make clear that capitalism, the free market and the classical liberal ideology are failing? Of course not, whatever social democrat ideological veterans might proclaim. Socialism and its derivatives have been morally discredited since the fall of the Berlin wall and there is no chance for them of getting back. People get a grasp that there is something wrong with the way the system works for now, but not with the system itself, as a recent poll by FT/Harris suggests.

What has been the ultimate source of the financial crisis hurting the world economy? To understand this, one has to consider on what the world economy is founded and that is still the U.S. Dollar. This rock of confidence has been originating from Western-European civilisation, deriving from mediaeval Bruges, the first financial center of its time, dubbed as “the cradle of capitalism”, where the Flemish van den Beurze family has borrowed its name for the “bourse” institutions emerging in the world’s later financial centers Antwerp, Amsterdam, London and New York. A protestant classical liberal culture has culminated in the founding of the new world, where nothing less than the absolute individual freedom was deemed sufficient for humanity and where without any doubt the highest level of civilisation has been reached, to the regret and envy of the less developed cultures outside the new world still suffering from oppression and jealousy. The American money has out-competed all rivals in becoming the sure rock for the tired, the poor and the huddled masses, also those outside the new world, to rely on.

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