UN Calls For New Global Reserve Currency

The United Nations called on Tuesday for a new global reserve currency to end dollar supremacy which has allowed the United States the “privilege” of building a huge 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 undersecretary-general for economic and social affairs, Sha Zukang, said.

Speaking at the annual meetings of the International Monetary Fund and World Bank in 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.”

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Call For Global Currency Expected At G20 Conference

The embattled US dollar is expected to come under scrutiny at a summit of developing and industrialized nations following China-led calls to review its role as a reserve currency.

The dollar issue is bound to surface at the two-day meeting in Pittsburgh as US President Barack Obama and other leaders of the Group of 20 economies debate a new framework for tackling the so called global “economic imbalances” blamed for fuelling the latest financial crisis.

“Though not clear how the plan would be enforced, it would involve measures such as the US cutting its deficits and saving more, China reducing its reliance on exports and Europe making structural changes to boost business investment,” analysts at French bank Societe Generale said in a report.

Some argue that the financial crisis resulted from imbalances between savings and investment in major economies, which have led to large current deficits, as evident in the United States, and surpluses, as enjoyed by China.

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U.S. Pushes For New Economic World Order at G20

The United States will urge world leaders this week to launch a new push in November to rebalance the world economy, but there are doubts national governments will bow to external advice.

A document outlining the U.S. position ahead of the September 24-25 Group of 20 summit in Pittsburgh said exporters, which include China, Germany and Japan, should consume more, while debtors like the United States ought to boost savings.

“The world will face anemic growth if adjustments in one part of the global economy are not matched by offsetting adjustments in other parts,” said the document, which was obtained by Reuters on Monday.

The framework drafted by U.S. policy makers foresaw analysis of G20 members’ economic policies by the International Monetary Fund to figure out if they were consistent with better balanced growth.

“We call on our finance ministers to launch the new framework by November,” the document said, signaling a determined effort to maintain momentum for change created by last year’s global financial crisis.

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World Moves Towards United Future World Currency

Russian President Dmitry Medvedev illustrated his call for a supranational currency to replace the dollar by pulling from his pocket a sample coin of a “united future world currency.”

“Here it is,” Medvedev told reporters today in L’Aquila, Italy, after a summit of the Group of Eight nations. “You can see it and touch it.”

The coin, which bears the words “unity in diversity,” was minted in Belgium and presented to the heads of G-8 delegations, Medvedev said.

The question of a supranational currency “concerns everyone now, even the mints,” Medvedev said. The test coin “means they’re getting ready. I think it’s a good sign that we understand how interdependent we are.”

Medvedev has repeatedly called for creating a mix of regional reserve currencies as part of the drive to address the global financial crisis, while questioning the U.S. dollar’s future as a global reserve currency. Russia’s proposals for the G-20 meeting in London in April included the creation of a supranational currency.

via Medvedev Shows Off Sample Coin of New ‘World Currency’ at G-8 – Bloomberg.com.

A little history on the coin

The world in a coin. This is our vision, our hope. It is a necessity and a challenge. What seems an impossible dream becomes an inevitable historic, economic and social process. It is an event which is intertwined with the fate of human evolution.

A single currency becomes the premise for an increasingly global planet. A virtual currency capable of speaking a single, comprehensible language to foster humankind’s innate desire to go farther, to surpass boundaries, and move towards true principles of peace, freedom, brotherhood and understanding beyond issues of race, political and religious beliefs and party interests.

We are presenting the peoples of nations, governments, institutions, intellectuals, ordinary people, pragmatists and idealists, scholars and, above all, young people – the real protagonists of the future – with a simple, ingenuous yet determined long-term vision for building an ideal bridge with tomorrow and interpreting a dream to transform into reality.

In this program, currency yet again assumes the principle goal which it has had since its invention centuries ago: to facilitate and codify human commercial and social exchange. And become a form of pure “communication” between different peoples – a communication of ideas, ideals, information and culture. This constitutes progress, development and well being.

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Is A New World Order Just Around The Corner Pt.1

What is the New World Order? If we are to believe what we are told then imagine a utopia where the average man can twiddle away his time knowing that the enlightened elite will see to his every need. It is a global empire that unites men under a common banner. It is touted as a world state where by the divisive ideas of nationality, creed, religion, and culture no longer divide one individual from the other. Within this order lay the foundation of a new era without discrimination, unemployment, or war. It will become a global society where we will yield both our individuality as well as our sovereignty for the benefit of peace and prosperity for everyone. Truly, the coming utopia is a manifestation of Eden as it was intend to be.

Many people suggest that the idea of a one world government is merely the passive aggressive speculation of those who considered themselves as either militantly antigovernment or Christian fundamentalists. It is a conspiracy theory referring to a totalitarian government designed to create and enforce international law. And while it may be contributed to idol fancy, consider such unions as the World Trade Organization, the North American Free Trade Agreement, the European Union, and the United Nations. Is it difficult to understand why some may have reason to be concerned?

Russia – World Needs New Reserve Currency

Russian President Dmitry Medvedev said Tuesday the world needs new reserve currencies.

Medvedev told a regional summit that the creation of new reserve currencies in addition to the dollar is needed to stabilize global finances.

Medvedev has made the proposal before. It reflects both the Kremlin’s push for greater international clout and a concern shared by other countries that soaring U.S. budget deficits could spur inflation and weaken the dollar.

Airing it at a summit meeting underlined the challenge to U.S. clout.

Medvedev spoke at a summit of the Shanghai Cooperation Organization, which includes China and four Central Asian nations.

Later Tuesday he hosts a summit of the BRIC group of leading emerging economies — Brazil, Russia, India and China.

The Kremlin’s top economic adviser said Russia may put part of its currency reserves in bonds issued by Brazil, China and India.

Arkady Dvorkovich said Russia could make the move if the other three nations reciprocate. Brazil, Russia, India and China are the members of the BRIC group of leading emerging economies.

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Building A New World Order For The Man of Sin

Events unfolding since 9/11 portend a near future in which a man of superior intelligence, wit, charm, and diplomacy will emerge on the world scene as a savior. He will seemingly possess a transcendent wisdom that enables him to solve problems and to offer solutions for many of today’s most perplexing issues.

His popularity will be widespread and his fans will include young and old, religious and non-religious, male and female. Talk show hosts will interview his colleagues, news anchors will cover his movements, scholars will applaud his uncanny ability at resolving what has escaped the rest of us, and the poor will bow down at his table. He will, in all human respects, appeal to the best idea of society. But his profound comprehension and irresistible presence will be the result of an invisible network of thousands of years of collective knowledge. He will, like the god Vulcan, represent the embodiment of a very old super-intellegent spirit.

As Jesus Christ was the “seed of the woman” (Gen. 3:15), he will be the “seed of the serpent.” Moreover, though his arrival in the form of a man was foretold by numerous Scriptures, the broad masses will not immediately recognize him for what he actually is—paganism’s ultimate incarnation; the “beast” of Revelation 13:1.

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If China Loses Faith, The Dollar Will Collapse

Emerging economies such as China and Russia are calling for alternatives to the dollar as a reserve currency. The trigger is the US Federal Reserve’s policy of expanding the money supply to prop up the banking system and its over-indebted households. Because the magnitude of the bad assets within the banking system and the excess leverage of its households are potentially huge, the Fed may be forced into printing dollars massively, which would eventually trigger high inflation or even hyperinflation and cause great damage to countries that hold dollar assets in their foreign exchange reserves.

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Obamas Leap To Socialism – Dick Morris

President Obama showed his hand this week when The New York Times wrote that he is considering converting the stock the government owns in our country’s banks from preferred stock, which it now holds, to common stock.

This seemingly insignificant change is momentous. It means that the federal government will control all of the major banks and financial institutions in the nation. It means socialism.

The Times dutifully dressed up the Obama plan as a way to avoid asking Congress for more money for failing banks. But the implications of the proposal are obvious to anyone who cares to look.

When the Troubled Asset Relief Program (TARP) intervention was first outlined by the Bush administration, it did not call for any transfer of stock, of any sort, to the government. The Democrats demanded, as a price for their support, that the taxpayers “get something back” for the money they were lending to the banks. House Republicans, wise to what was going on, rejected the administration’s proposal and sought, instead, to provide insurance to banks, rather than outright cash. Their plan would, of course, not involve any transfer of stock. But Sen. John McCain (R-Ariz.) undercut his own party’s conservatives and went along with the Democratic plan, ensuring its passage.

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Ending American Sovereignty

On April 2, 2009, the work of July 4, 1776, was nullified at the meeting of the G-20 in London. The joint communique essentially announces a global economic union with uniform regulations and bylaws for all nations, including the United States. Henceforth, our SEC, Commodities Trading Commission, Federal Reserve Board and other regulators will have to march to the beat of drums pounded by the Financial Stability Board (FSB), a body of central bankers from each of the G-20 states and the European Union.

The mandate conferred on the FSB is remarkable for its scope and open-endedness. It is to set a “framework of internationally agreed high standards that a global financial system requires.” These standards are to include the extension of “regulation and oversight to all systemically important financial institutions, instruments, and markets … (including) systemically important hedge funds.”

Note the keyword: “all.” If the FSB, in its international wisdom, considers an institution or company “systemically important,” it may regulate and oversee it. This provision extends and internationalizes the proposals of the Obama administration to regulate all firms, in whatever sector of the economy, that it deems to be “too big to fail.”

The FSB is also charged with “implementing … tough new principles on pay and compensation and to support sustainable compensation schemes and the corporate social responsibility of all firms.”

That means that the FSB will regulate how much executives are to be paid and will enforce its idea of corporate social responsibility at “all firms.”

The head of the Financial Stability Forum, the precursor to the new FSB, is Mario Draghi, Italy’s central bank president. In a speech on Feb. 21, he gave us clues to his thinking. He noted that “the progress we have made in revising the global regulatory framework … would have been unthinkable just months ago.”

He said that “every financial institution capable of creating systemic risk will be subject to supervision.” He adds that “it is envisaged that, at international level, the governance of financial institutions, executive compensation and the special duties of intermediaries to protect retail investors will be subject to explicit supervision.”

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Towards World Currency

Let’s assume for a moment that we are in the protean stages of a new world currency; that the G20’s moves this time last week are laying the ground for its special drawing rights to replace the dollar as the international reserve currency. On that basis which of these two scenarios would you feel more uncomfortable with:

1. That a shadowy sect of global leaders are conspiring together to set up this new world currency; or that,

2. Instead, clueless politicians are sleepwalking into this, not knowing precisely what they are doing.

The conspiracy theories that surround the SDRs usually assume the first scenario, and indeed the events of the past couple of weeks seem to bear this out. First you had the People’s Bank of China surreptitiously publishing a discussion paper on the notion of replacing the dollar as the international reserve currency with SDRs. Then US Treasury Secretary Tim Geithner appeared to acquiesce to such suggestions. Then, last week, you had the decision to issue $250bn more of the things at the G20, in what might be seen as a prelude to a more widespread plot to install SDRs permanently in place. Under what was approved by the world leaders, the IMF is suddenly behaving like a global central bank, issuing SDRs to control liquidity worldwide. This is a central bank without direct accountability to the people of the world, which only seems to underline the apparent outrageousness of this plot.

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Towards A New World Order

Ultimately, what this implies is that the future of the global political economy is one of increasing moves toward a global system of governance, or a world government, with a world central bank and global currency; and that, concurrently, these developments are likely to materialize in the face of and as a result of a decline in democracy around the world, and thus, a rise in authoritarianism. What we are witnessing is the creation of a New World Order, composed of a totalitarian global government structure.

In fact, the very concept of a global currency and global central bank is authoritarian in its very nature, as it removes any vestiges of oversight and accountability away from the people of the world, and toward a small, increasingly interconnected group of international elites.

As Carroll Quigley explained in his monumental book, Tragedy and Hope, “[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.”[71]

Indeed, the current “solutions” being proposed to the global financial crisis benefit those that caused the crisis over those that are poised to suffer the most as a result of the crisis: the disappearing middle classes, the world’s dispossessed, poor, indebted people. The proposed solutions to this crisis represent the manifestations and actualization of the ultimate generational goals of the global elite; and thus, represent the least favourable conditions for the vast majority of the world’s people.

It is imperative that the world’s people throw their weight against these “solutions” and usher in a new era of world order, one of the People’s World Order; with the solution lying in local governance and local economies, so that the people have greater roles in determining the future and structure of their own political-economy, and thus, their own society. With this alternative of localized political economies, in conjunction with an unprecedented global population and international democratization of communication through the internet, we have the means and possibility before us to forge the most diverse manifestation of cultures and societies that humanity has ever known.

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UN Panel Welcomes Debate Over New Global Reserve Currency

Editors Note - For those keeping score… This makes it 3. Russia, China and now the UN have each announced  advocating a move to a global currency at the  upcoming  G20 conference.

The head of a United Nations expert panel discussing solutions to the financial crisis on Thursday welcomed the debate over a new global reserve currency and said it would be best managed by a brand new institution.

Just days ahead of the Group of 20 heads of state meeting in London, several key players have weighed in with solutions to resolve the current financial crisis and to prevent future recurrences. One of the most sensitive subjects is the creation of a new de facto global reserve currency to replace the U.S. dollar.

The debate has shot to the forefront as officials from Russia and China have spoken up, lending weight to the discussions. While the G20 meeting isn’t expected to address it directly, it’s a topic that will continue to be discussed over the longer term.

The U.N. panel’s report published last week said a new global reserve system would “contribute to economic stability and equity,” and would reduce the deflationary effects of the massive reserve accumulations that countries have found necessary to protect them against the high level of global instability.

The International Monetary Fund is often cited as the most obvious choice to run a global reserve system, as it already uses its own currency, known as special drawing rights, or SDRs, in its dealings with member countries.

Joseph Stiglitz, economist and head of the U.N. panel, said Thursday in a teleconference with journalists that, although the IMF might be the fastest route, there’s a stigma associated with it among some developing countries, and there’s also frustration with the way that SDRs are allocated.

“My own longer-term preference is to create a new institution to do this,” Stiglitz said. “That’s a trade-off. I would rather face up to these deeper questions and get the system right.”

via Article – WSJ.com.

China Proposes One Global Currency

China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.

Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.

“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.

Although Mr Zhou did not mention the US dollar, the essay gave a pointed critique of the current dollar-dominated monetary system.

“The outbreak of the [current] crisis and its spillover to the entire world reflected the inherent vulnerabilities and systemic risks in the existing international monetary system,” Mr Zhou wrote.

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