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The Gathering Storm - ditching the US$ [Copy link] 中文

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Post time 2009-3-20 07:54:09 |Display all floors
Reality is setting in..... The game will be over soon for the US$ .............for too long the peoples of the world
have been duped .....the demise of the US$ will only expedite the dismantling of US Global Tyranny......

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U.N. panel says world should ditch dollar

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.

By Jeremy Gaunt
Reuters
Wed Mar 18, 2009

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Post time 2009-3-20 07:55:48 |Display all floors

Russia proposes creation of global super-reserve currency

MOSCOW, March 16 (Itar-Tass) -- Russia suggests the G20 summit in London in April should start establishing a system of managing the process of globalization and consider the possibility of creating a supra-national reserve currency or a “super-reserve currency.” The Russian Federation’s proposals for ways out of the ongoing financial and economic crisis and for a post-crisis order of the world financial system have been published on the Kremlin’s website. The proposals have been dispatched to the leadership of the G20 countries, the CIS and international organizations.

“The current global economic crisis points to the need for discarding standard approaches and requires the adoption of collective decisions, agreed at the international level and geared to creating a system of globalization process management,” the document says. Russia suggests “acting with the maximum resolution in order to restore sustainable economic development and also confidence and stability in the financial markets.”

The Russian side believes the summit should seek and achieve accord on the main parameters of a new world financial system. It suggests calling an international conference that would produce the basic parameters of a world financial architecture and adopt international conventions regarding a new financial world order.

Russia believes that the “obsolete mono-polar structure of the world economy should give way to a system based on cooperation by several major centers.”

In the sphere of control and supervision Russia suggests drafting and adopting an international agreement setting global standards of control and supervision in the financial sector – a Standard Universal Regulatory Framework (SURF).

Russia calls for reforming the international currency and financial system with the aim to strengthen its stability and control. In that connection the Russian side suggests discussing the possibility of expanding the list of currencies to be used as reserve ones, on the basis of the adoption of agreed measures to stimulate the development of major regional financial centers, and also “the creation of a supra-national reserve currency that will be issued by international financial institutions.”

“It looks expedient to reconsider the role of the IMF in that process and also to determine the possibility and need for taking measures that would allow for the SDRs (Special Drawing Rights) to become a super-reserve currency recognized by the world community,” the document says.

Also, Russia in the medium and long-term is for a revision of the role and mandate of the IMF in order to adjust both to a new structure of the world currency and financial system, whose modification is to be completed as a result of the current crisis.

For the purpose of overcoming the current crisis it will be necessary to considerably increase the resources of the IMF.

“The decisions we shall make at the London summit must be not only adequate to the current situation, but also meet the requirements of a new, post-crisis world,” the document says.

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Post time 2009-3-20 08:16:06 |Display all floors

One-world currency emerges

As a first step, nations should starting trading in non-US dollars ........while pursuing Common Currency for group
of nations .......and maybe eventually to a one-world currency.....

The World is pretty tired with the fiat dollars ........

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WorldNetDaily
March 16, 2009

Canadian economist and Nobel-prize winning professor Robert Mundell, who is credited with formulating the intellectual basis for creating the euro, is pushing for a one-world currency, Jerome Corsi's Red Alert reports.

"This prominent endorsement is yet another indication that globalists are advancing global governance and structures, including the idea of a global currency, as solutions to the worldwide economic recession," Corsi writes.

Mundell has endorsed Kazakhstan President Nursultan Nazarbayev's idea to create the "acmetal" as a world currency.

"I must say that I agree with President Nazarbayev on his statement and many of the things he said in his plan, the project he made for the world currency, and I believe I'm right on track with what he is saying," Mundell told the Australian News.

Nazarbayev and Mundell called on the G-20 to form a working group to study the proposal at its April 2 meeting in London.

Nazarbayev explained that his coining of the name "acmetal" comes from the Greek word "acme," meaning "peak" or "best," and "capital."

A one-world currency presupposes the creation of a one-world central bank that would manage the currency, thereby superseding the authority of nation-state central banks, such as the Federal Reserve in the United States and the European Union Central Bank.

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Trending events:-

1) Finance chiefs of five of the six-member, oil-rich Gulf Cooperation Council approved a proposal to create a monetary union as a move toward adopting a single currency.

The six Islamic states constituting the Gulf Cooperation Council are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

In 2002, the finance ministers of the Gulf Cooperation Council states sought out the assistance of the European Central Bank as the model for their single currency.

2) 53-nation African Union to create an African continental currency called "the gold Mandela."

3) Central American leaders want common currency.

4) COMMON CURRENCY FOR WEST AFRICA

5) New Regional Currency for Latin America called the Sucre, in honor of Antonio José de Sucre, a South American independence hero. SUCRE also stands for Unified Regional Compensation System, translated from Spanish.

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Post time 2009-3-20 08:23:54 |Display all floors

Gulf leaders set to discuss common currency

Gulf Arab policymakers are set to decide next week on the location of a regional central bank and could choose to streamline the ratification process for a monetary union deal, a senior Gulf official said.

Five of six oil-producing Gulf Cooperation Council (GCC) states have this year put fresh impetus behind efforts to create a common currency, agreeing in June to set up the nucleus of a joint central bank - a monetary council - in 2009.

Under the current plan, the monetary council would be established one month after all Gulf governments have ratified the monetary union agreement, said Naser al-Kaud, deputy assistant secretary-general at the GCC Secretariat-General.

Gulf central bank governors and finance ministers will study a proposal on Sept. 17 to get the council started after three states ratify the deal, he said.

"What we are trying now is to make it less than five, maybe three, so as to establish the monetary council as soon as possible," Kaud told Reuters in an interview late on Sunday.

Central bank chiefs, set to meet for two days before their joint meeting with finance ministers, will also put the "final touches" on the monetary union deal and the council's charter.

"The location of the monetary council will be decided at the joint meeting and they will recommend it to Gulf leaders," Kaud said, adding there were "no specific proposals" on the site.

Among the monetary council's responsibilities will be to determine the conversion rate of each national currency against the common currency - a step that is likely to happen before 2010, he said.

"If we are not able to issue the physical currency we will have the accounting unit and the name. Then we can have a transitional period before we issue the currency," Kaud said.

"I think that is the least we can do to meet that deadline."

Any decisions made at next week's meetings in the Red Sea port city of Jeddah would have to be approved by Gulf leaders at their annual summit in Omani capital Muscat this November. (Reuters)

by Daliah Merzaban on Monday, 08 September 2008

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Post time 2009-3-20 08:25:41 |Display all floors

Central American leaders want common currency

San Pedro Sula, Honduras - The nations of Central America want to institute a common currency and a shared credit fund to combat the global financial crisis, the region's leaders said at a meeting in Honduras on Friday.

The presidents and vice presidents of the region's seven countries and the Dominican Republic also agreed to a common passport for their citizens at the meeting of the Central American Integration Summit (SICA). The leaders gave no time table for instituting the proposals.

Currently El Salvador and Panama use the US dollar as their currency, while Belize, Costa Rica, the Dominican Republic, Guatemala, Nicaragua and Honduras have their own currencies.

Business News
Dec 6, 2008

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Post time 2009-3-20 08:27:04 |Display all floors

Venezuela Proposes New Regional Currency During ALBA Summit

Caracas, November 28th, 2008 (Venezuelanalysis.com) -- In a speech at the III Extraordinary Summit of the Bolivarian Alternative for the Americas (ALBA) in Caracas on Wednesday, Venezuelan President Hugo Chávez proposed the creation of a regional monetary bloc with its own currency to break the hegemony of the U.S. dollar and U.S.-dominated international financial institutions.

“We are going to create a proposal for a monetary zone of solidarity-based commercial exchange,” said Chávez. “The hegemony of the dollar must end.”

The currency would start out as a virtual compensation system, and later become a hard currency, Chávez explained. It would make Latin American countries less susceptible to the effects of the world financial crisis, he said.

Chávez suggested that the name of the currency be the Sucre, in honor of Antonio José de Sucre, a South American independence hero. SUCRE also stands for Unified Regional Compensation System, translated from Spanish.

The ALBA is an alternative trade bloc to the U.S.-backed Free Trade Area of the Americas (FTAA), and its members include Honduras, Nicaragua, Cuba, Bolivia, Venezuela, Dominica, and Ecuador as an associate.

Chávez also said the ALBA member countries must construct their own solutions to the world financial, food, and ecological crises. “We are not going to wait here with our arms crossed for the World Bank or the International Monetary Fund (IMF) to come and solve the problems for us,” said Chávez. “We have things to say, the South also exists.”

“We will leave the Inter-American Development Bank and we will make our own bank, a bank that we ourselves manage,” said Chávez. “Can anyone imagine that the solution will come from Washington, from those who generated the crisis?”

Honduran President Manuel Zelaya said “the time has arrived to review” the participation of ALBA member countries in the IMF and other financial institutions.

Chávez said these institutions “must be dissolved” because they are the “culprits of the crisis” and they only exist as “an imperialist hand to dominate us.”

Nicaraguan President Daniel Ortega, who participated in the summit, said the ALBA “has established bases that put us in an advantageous position amidst the world economic crisis.”

Bolivian President Evo Morales also advocated mutual support among countries in the region, which is one of the ALBA’s principles. “Those of us who believe in life have no other path than to choose to work together and complement each other for the benefit of all,” said Morales.

“In Capitalism, there are no human beings, but consumers, there is no Mother Earth, but raw materials, and great assymetries exist among families, countries, and continents,” Morales asserted.

Rafael Correa, the president of Ecuador, asked for support from ALBA member countries as he seeks international tribunals to relieve Ecuador of debt incurred by past governments which operated according to the values of U.S.-dominated international financial institutions.

“We ask the ALBA to back us. It is necessary to make the truth known… this debt is illegitimate and we have no reason to pay,” said Correa. “I assure you, we will make sensible and responsible decisions… we can achieve much more if we are united.”

While presenting the final declaration of the summit, President Chávez proposed that ALBA countries create debt auditing commissions to support debt-burdened countries such as Ecuador and “begin evaluating ourselves and supporting other nations in this task.”

November 28th 2008, by James Suggett - Venezuelanalysis.com

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Post time 2009-3-20 08:30:08 |Display all floors

COMMON CURRENCY FOR WEST AFRICA

Members od ECOWAS are working towards a common currency for the West African Monetary Zone to facilitate easy trading recognised as the gateway to West Africa

The countries of West Africa are working towards achieving monetary and currency integration by introducing a common currency called “Ecoi” throughout the West African Monetary Zone (WAMZ). The common currency will be initially introduced in the member countries of the West African Monetary Zone (WAMZ). These countries include Ghana, Nigeria, Sierra Leone, Gambia, Guinea and Liberia and the Union Monetaire I’ovest Africaine (UMOA) countries made up of Benin, Togo, Cote d'Ivoire, Niger, Mauritania, Senegal, Burkina Faso, and Mali. By integrating the two blocs of UMOA and WAMZ, the west African countries are looking to form a trade bloc that could have a bigger say in international markets and promote a better economic outlook for the entire region.

The establishment of the Economic Community of West African States Monitoring Cooperation Program (EMCP) adoption in 1987 was to evolve a limited currency convertibility and introduce a commoncurrency in the sub-region.

The first step towards the economic integration of West Africa was the establishment of the Economic Community of West African States (ECOWAS) in 1975. Under the ECOWAS treaty, it was envisaged that the 16 member-nations would form a common market. Subsequently, the heads of state and government adopted the ECOWAS Monetary Cooperation Program (EMCP) IN 1987. Under the initiative, it was envisaged that all the countries would come together to form a single monetary one by 2000, from the eight currencies in the sub-region, one of which is the CFA franc.

“By integrating the economies in west Africa, monetary integration will lead to the creation of a single regional market,” said Oladimeji Alo, director general of the Financial Institutions Training Center (FITC) based in Lagos, Nigeria. “This new unified market of over 210 million people spread over 16 member countries with a GDP of over $100billion is an enormous market, when compared with the otherwise fragmented markets of individual countries,” he noted.

To achieve the ultimate objective of a single currency, member countries are required to implement a number of measures including: adoption of a market based exchange rate system.

At present, 15 West African countries use the CFA as their common currency. Notably, the CFA has been linked to the French franc but switched its link to the Euro recently. With this development, it is very unlikely that the West African members of the CFA zone will be too keen to abandon their attachment to their colonial masters (France) and start using the “ECOI”. Countries like Liberia and Cape Verde have already expressed their reservations about plans for a new common currency. Other (relatively smaller) ECOWAS member-states also do not foresee any significant advantage for themselves with the introduction of the ECOI.
Therefore, while the establishment of a single currency in a region usually strengthens economic stability via increased trade exchanges and new opportunities for external investment, it is quite doubtful whether the ECOI would be able to realise such benefits in the initial stages.

However, the International Monetary Fund, the European Union, the Economic Community of Africa, the European Central Bank and the Bank of England are backing the proposal for the West African common currency.

Africa Business Page

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