UN calls for new reserve currency

[Winehole23]

UN calls for new reserve currency (http://www.breitbart.com/article.php?id=CNG.e272eaa74dccc30f21c6ff7638b0f37 b.461&show_article=1)
Oct 6 07:17 AM US/Eastern

The United Nations (http://topics.breitbart.com/United+Nations/) called on Tuesday for a new global reserve currency (http://topics.breitbart.com/reserve+currency/) to end dollar supremacy which has allowed the United States (http://topics.breitbart.com/United+States/) the "privilege" of building a huge trade deficit. (http://topics.breitbart.com/trade+deficit/)

"Important progress in managing imbalances can be made by reducing the reserve currency country?s 'privilege' to run external deficits in order to provide international liquidity," UN (http://topics.breitbart.com/UN/) undersecretary-general for economic and social affairs, Sha Zukang, (http://topics.breitbart.com/Sha+Zukang/) said.



Speaking at the annual meetings of the International Monetary Fund (http://topics.breitbart.com/International+Monetary+Fund/) and World Bank (http://topics.breitbart.com/World+Bank/) in Istanbul, (http://topics.breitbart.com/Istanbul/) he said: "It is timely to emphasise that such a system also creates a more equitable method of sharing the seigniorage derived from providing global liquidity."


He said: "Greater use of a truly global reserve currency, such as the IMF? (http://topics.breitbart.com/IMF/)s special drawing rights (SDRs), enables the seigniorage gained to be deployed for development purposes," he said.



The SDRs are the asset used in IMF transactions and are based on a basket of four currencies -- the dollar, euro, yen and pound -- which is calculated daily.



China had called in March for a new dominant world reserve currency instead of the dollar, in a system within the framework of the Washington-based IMF.

[LnGrrrR]

Stupid. What's the point of making a "new" one the standard bearer? Woudl that have actually solved any problems related to the worldwide crisis?

And the bolded quote... what does that actually mean? Sounds like political gibberish.

The US is the standard bearer because we're a hyperpower. That won't change if they stop using the dollar as a de facto measurement.

[clambake]

they've grown tired of the US shananigans.

[jman3000]

More like they want to have shananigans all their own.

Fuck the UN. I can't imagine a more impotent body.

[LnGrrrR]

they've grown tired of the US shananigans.

It's not like the world was FORCED into using the dollar. They just used it out of convenience. Now they want to bitch because we're having rough times and it's affecting them. I can't quite work up sympathy for these other countries.

[Winehole23]

And the bolded quote... what does that actually mean? Sounds like political gibberish.It means that there is a growing consensus to alter built in monetary advantage that has allowed the US to live beyond its means for so long, in favor of a currency basket that spreads the benefits (seigniorage (http://www.investopedia.com/terms/s/seigniorage.asp)) of being the golbal currency reserve around a little more.


The US is the standard bearer because we're a hyperpower. That won't change if they stop using the dollar as a de facto measurement.In the short term, no, but it has stark implications for our fiscal health and the US standard of living.

[JudynTX]

http://www.spurstalk.com/forums/showthread.php?t=118468

[CosmicCowboy]

It's a threat and it damn well better be heeded by this administration. They are telling Washington to get spending under control and not to monetize our debt (print money and consequently devalue the dollar).

[clambake]

they first told the last administration.

[Winehole23]

So what? If the the rest of the world decides that US dollar holdings are no longer in their own interest, there's very little any US president can do about it.

[hater]

well the dollar is a joke

I vote for monopoly money

[DarkReign]

It's a threat and it damn well better be heeded by this administration. They are telling Washington to get spending under control and not to monetize our debt (print money and consequently devalue the dollar).


So what? If the the rest of the world decides that US dollar holdings are no longer in their own interest, there's very little any US president can do about it.

You beat me to it.

There is nothing the US can do to stop the world from dropping the dollar as the standard.

Honestly, its about fucking time. Lets get this bitch started already because the Dancing with the Stars-addicted American populace is due for a serious enema.

This would gut the US through and through. Maybe then and only then will more than 30% of Americans start paying attention to their government.

Too bad it takes years for this change, I'd much rather the member states of the UN make the change tomorrow so that reality could set in from record fashion for idiotic, complacent, uneducated, fucked-up priority Americans.

Anyway, that was from out of nowhere....

[hope4dopes]

You beat me to it.

There is nothing the US can do to stop the world from dropping the dollar as the standard.

Honestly, its about fucking time. Lets get this bitch started already because the Dancing with the Stars-addicted American populace is due for a serious enema.

This would gut the US through and through. Maybe then and only then will more than 30% of Americans start paying attention to their government.

Too bad it takes years for this change, I'd much rather the member states of the UN make the change tomorrow so that reality could set in from record fashion for idiotic, complacent, uneducated, fucked-up priority Americans.

Anyway, that was from out of nowhere.... Extremely painfull scenario ,but perhaps the best one we can hope for.

[CosmicCowboy]

It's funny but even the "Dancing with the Stars-addicted American populace" gets it. Everyone is cutting back, paying down debt, and taking a long hard look at every expense and asking themselves "is this something we really NEED or just something we WANT?"

If only our politicians could get it.

[Crookshanks]

It's funny but even the "Dancing with the Stars-addicted American populace" gets it. Everyone is cutting back, paying down debt, and taking a long hard look at every expense and asking themselves "is this something we really NEED or just something we WANT?"

If only our politicians could get it.
Oh - I think many of them are going to "get it" come the 2010 elections. :lol

[DarkReign]

It's funny but even the "Dancing with the Stars-addicted American populace" gets it. Everyone is cutting back, paying down debt, and taking a long hard look at every expense and asking themselves "is this something we really NEED or just something we WANT?"

If only our politicians could get it.

Right, but thier personal finances aside, American politics boils down to Red or Blue team when neither deserves so much as a shred of consideration (save for the very few exceptions).

American people need to start voting in people based on their fiscal stances, not whether they favor abortion, gay marriage or any other wedge issue.

For all of Americans strengths, our weakness is the ultimate Achilles heal...

Too easily led. A byproduct of of public indoctrin...I mean education?

Hmmm.

[DarkReign]

Oh - I think many of them are going to "get it" come the 2010 elections. :lol

What? So Republicans can wrest control of Congress and fail all the same only you'll feel better about their abject failure due to your preferred consonant being at the end of their name?

Please.

[LnGrrrR]

It means that there is a growing consensus to alter built in monetary advantage that has allowed the US to live beyond its means for so long, in favor of a currency basket that spreads the benefits (seigniorage (http://www.investopedia.com/terms/s/seigniorage.asp)) of being the golbal currency reserve around a little more.

In the short term, no, but it has stark implications for our fiscal health and the US standard of living.

Does it have actual implications, or is it merely a sign of changing times?

In other words, does changing the international standard from a dollar to something else actually AFFECT the US greatly, or is it just recognition that the US dollar is not strong?

And if the US dollar stops being de facto, then people from the US will buy will most likely purchase more items domestically. Many people won't be bothered to due the conversion necessary to buy something in another denomination.

[boutons_deux]

"actual implications"

If oil is priced in Euros, and the Euro appreciates seriously, US's oil import bill appreciates seriously.

iow, the US becomes hostage to exchange rates the way other countries have been when oil is priced in US$.

[LnGrrrR]

"actual implications"

If oil is priced in Euros, and the Euro appreciates seriously, US's oil import bill appreciates seriously.

iow, the US becomes hostage to exchange rates the way other countries have been when oil is priced in US$.

I still see that more as a reflection of the degradation of the dollar compared to other monies.

[MannyIsGod]

#1 How will the rest of the world do this?
#2 Why would it be disastrous for the US?

[clambake]

israel better not allow this to happen.

[NoOptionB]

Replace the current phony fiat currency with a new phony fiat currency.

4N3N1MlvVc4


Fuck it. It's time for all of us to quit paying attention to politics and go spend our funny money on hookers and blow. It's a celebrationnnn

[SnakeBoy]

Not suprising the Chinese ambassador is the one making the argument. China just started selling bonds and now they don't want their currency tied to the dollar. I think they have dreams of the yuan replacing the greenback. The OP should be titled China calls for new reserve currency.

[boutons_deux]

the World Champion of Capitalism and Free Markets has led the planet's economy, most of it, into a deep hell. US's credibility and trust in these matters has taken a serious hit.

[Purple & Gold]

Most people saw this coming a loooong time ago

[symple19]

Right, but thier personal finances aside, American politics boils down to Red or Blue team when neither deserves so much as a shred of consideration (save for the very few exceptions).

American people need to start voting in people based on their fiscal stances, not whether they favor abortion, gay marriage or any other wedge issue.

For all of Americans strengths, our weakness is the ultimate Achilles heal...

Too easily led. A byproduct of of public indoctrin...I mean education?

Hmmm.

Well said

[MannyIsGod]

#1 How will the rest of the world do this?
#2 Why would it be disastrous for the US?

[Cant_Be_Faded]

#2 Why would it be disastrous for the US?

Manny come on

You're a great poster in this forum all things considered but sometimes I don't know if you are baiting, or being serious

Are you being serious here?


edit: since you quoted your own post, I am guessing you are serious


It would be disastrous for the U.S. because our political leaders are putting on such a successful charade, where they convince people health care reform consists of a government option, and faggot rights are a divisive issue, noone realizes that they spend OUR (the taxpayers) money with absolutely no regard to how much we have to give. By changing the global reserve currency from dollar, the United States abandons what is probably one of the ultimate ultimate powers a nation in human existence ever wielded: the ability to endlessly pay off its debt in its own currency.

That is why it would be disastrous. If our leaders were not all giant pieces of egotistical shit, then it would not be, because they would only have to look at a medicare and social security chart from the early '90's, then cut back spending. But it simply will not happen.

[2centsworth]

israel better not allow this to happen.

This made me chuckle. It only took you 8000 posts, but you did it.

[Winehole23]

CBF posts sparingly in this forum, but always comes strong. ^^^post is no exception

[MannyIsGod]

Manny come on

You're a great poster in this forum all things considered but sometimes I don't know if you are baiting, or being serious

Are you being serious here?


edit: since you quoted your own post, I am guessing you are serious


It would be disastrous for the U.S. because our political leaders are putting on such a successful charade, where they convince people health care reform consists of a government option, and faggot rights are a divisive issue, noone realizes that they spend OUR (the taxpayers) money with absolutely no regard to how much we have to give. By changing the global reserve currency from dollar, the United States abandons what is probably one of the ultimate ultimate powers a nation in human existence ever wielded: the ability to endlessly pay off its debt in its own currency.

That is why it would be disastrous. If our leaders were not all giant pieces of egotistical shit, then it would not be, because they would only have to look at a medicare and social security chart from the early '90's, then cut back spending. But it simply will not happen.

So you're telling me it would be disastrous because they would have to cut back spending? Sure, I guess if it happened overnight, but how the fuck is the rest of the world going to do that? The United States Dollar continues to be the safest investment out of any world currency and THAT alone is what makes it the global reserve currency.

The UN can talk out of its ass all it wants but its simply an attempt to lower the amount of leverage the United States has. I'm not so naive so to think that the United States will always have this clout, but I also know its not so simple to think that some UN meeting was held to decide who the lucky country would be.

There are countries who run with larger GDP to debt ratio than the United States. We may have the largest number, but we also have the largest GDP by far and that is why we're the global reserve currency. This is nothing that is going to change overnight. The rest of the world is suffering and there aren't very many options. This is like the UN having a meeting declaring that people with cancer are unlucky and we cure them. I'm pretty sure that if they came out with that statement someone would ask, "HOW?"

In any event, even if it does happen I don't think it will be disastrous by any means. The first things to go would not be the social services we need here at home, the first thing to go would be our over bloated military. You think a country who all of a sudden has a lot less to spend is going to choose to sail carriers all over the world while every falls apart at home? Yeah fucking right. It would force our hand to be smarter with everything.



its funny because I see a lot of fear in this thread and I honestly have no idea why.

[MannyIsGod]

Oct. 9 (Bloomberg) -- The dollar (http://www.bloomberg.com/apps/quote?ticker=DXY%3AIND) rose the most in two months against the yen after Federal Reserve Chairman Ben S. Bernanke (http://search.bloomberg.com/search?q=Ben+S.%0ABernanke&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1) said the bank is ready to tighten monetary policy once the economy improves, increasing the appeal of U.S. assets.

UN meetings scare me about as much as a 2 years old with a water gun. Its a lot of bullshit bluster.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a0_d_dMcAR_Q

[MannyIsGod]

Also, if they DID have the ability to do what they propose and the US economy would suffer disastrous effects why the fuck would they do it? Anyone who thinks that the US economy alone can suffer while the rest of the world prospers must have missed what happened about a year ago.

As we go, the world goes.

[MannyIsGod]

Its kinda funny, Krugman just answered a question about this recently on his blog



The dollar’s role in the world actually looks stronger now that it did before the crisis. Why? Because our only serious rival, the euro, looks weaker. The euro zone has been fragmented in this crisis, especially the bond market, with debt of weaker European countries seriously discounted. This pushes the euro’s ability to rival the dollar back, at least for a while. And nobody else is really in the running.
That said, the benefits of owning a key global currency are much overrated. Yes, we get a little free financing because Latin Americans keep $100 bills in their safes, and the Chinese buy a lot of Treasury bills. But ultimately, the role of the dollar isn’t very important to American prosperity – when the British pound lost its international role, nobody in Britain noticed or cared except a few lost souls in Whitehall.


http://krugman.blogs.nytimes.com/2009/10/06/krugman-responds-readers-questions/#more-4677

[Cant_Be_Faded]

So you're telling me it would be disastrous because they would have to cut back spending? Sure, I guess if it happened overnight, but how the fuck is the rest of the world going to do that? The United States Dollar continues to be the safest investment out of any world currency and THAT alone is what makes it the global reserve currency.

The UN can talk out of its ass all it wants but its simply an attempt to lower the amount of leverage the United States has. I'm not so naive so to think that the United States will always have this clout, but I also know its not so simple to think that some UN meeting was held to decide who the lucky country would be.

There are countries who run with larger GDP to debt ratio than the United States. We may have the largest number, but we also have the largest GDP by far and that is why we're the global reserve currency. This is nothing that is going to change overnight. The rest of the world is suffering and there aren't very many options. This is like the UN having a meeting declaring that people with cancer are unlucky and we cure them. I'm pretty sure that if they came out with that statement someone would ask, "HOW?"

In any event, even if it does happen I don't think it will be disastrous by any means. The first things to go would not be the social services we need here at home, the first thing to go would be our over bloated military. You think a country who all of a sudden has a lot less to spend is going to choose to sail carriers all over the world while every falls apart at home? Yeah fucking right. It would force our hand to be smarter with everything.



its funny because I see a lot of fear in this thread and I honestly have no idea why.

Dude I never once thought or intimated that the global reserve currency would change over night, it will take decades, I was just answering your number 2.

Only an idiot would believe it could happen after one meeting, especially in this year.

And honestly, I think the only way it would ever happen would be a basket currency option, one in which the US was still included.