Global Governance Needed for Financial Stability

The President of the European Central Bank, Jean-Claude Trichet, told Forbes that global governance is extremely necessary if we want to prevent another financial crisis. In his prepared printed and spoken remarks to the Council on Foreign Relations, Trichet emphasized that politicians, economists, and financiers must work across the Atlantic and collaborate on methods to create an international set of standards.

It is his belief that through global governance, the resiliency of the global financial system can be assured, noting that ultimately it was governments’ use of taxpayer’s money, equivalent to around 25% of GDP on both sides of the Atlantic, that prevented another catastrophic great depression from occurring. Read the entire story here.

IMF Calls for New Reserve Currency

The head of the International Monetary Fund (IMF) says there is a need for a new global reserve currency that does not depend on the U.S. dollar, and the policies, practices, conditions and leadership of a dominant country - in this case, that would be the United States.

New Reserve Currency?

There is no doubt that the continued murmurs about dropping the USD, is a growing grumble, and is intended to ready for a new day, and a new world order.  This from a professor at the New York University's Stern business school:

Known as "Dr Doom" for his negative stance, Prof Roubini argues that China is better placed than the US to provide a reserve currency for the 21st century because it has a large current account surplus, focused government and few of the economic worries the US faces.

Wall Street Journal February 3, 2010:

Prof. Joseph Stiglitz of Columbia University and a former World Bank chief economist, wants to see an "orderly transition" from a dollar-based global economy. "It is peculiar that we still have the dollar system when we are so globalized," he says. "[There is a] need for a new global reserve system to replace the dollar-based system."...

Not only has the value of the dollar fallen, but with official interest rates close to zero and yields on bonds at record lows, the dollar has started looking like an unappealing asset to hold.... 

Figures from the International Monetary Fund show that the share of foreign-exchange reserves held in dollars by central banks resumed a downward trend in the third quarter of last year. The dollar's share has declined to 61.6% from 71.6% in the first quarter of 2002, when the currency hit its peak....

Always lusting for a one world order, the United Nations says the dollar should be replaced with a global currency, proposing the biggest overhaul of the world's monetary system since WWII.



Others talking about the demise of the dollar:
Left Coast Rebel

Related and Background:
Foreign Bank Bailout: War Funding Bill Funds IMF
Oil for Basket of Currency: Falling Dollar Road to One World Currency?
Congress Rebukes Obama -Wants Report on IMF Activities: Presidential Signings Rebuked 
Gulf Arab States: Oil Producers Deny Dollar Dump

Greece Becoming One with EU Painful and Humilitating: Greece Stripped of EU Voting Rights

Membership in the European Union (EU) has turned painful and humiliating for Greece. The country has been stripped of it's EU voting rights until it gets it's financial house in order. A question to citizens: how's that start on a One-World-Government, and the Euro working out for ya now?

 European Union Member States

I get it. The EU may help Greece come out of an economic earthquake, but what about sovereignty? Does sovereignty exist in the EU? Does anyone care anymore?

The EU demands internationalism, not nationalism - because they claim "solidarity as members of the human race."

Concepts of "shared sovereignty," "pooled sovereignty" and "joint national sovereignties" are covers for having one's laws and policies decided by European Union bodies one does not elect, which are not responsible to one's own people and which can have significantly different interests from them.

In practice countries and peoples which surrender their sovereignty to the EU become ever more subject to laws and policies that serve the interests of the bigger EU States.

 From OpenEuropeBlog: Angela Merkel called for EU intervention in December 2009:

As German daily Handelsblatt notes: "until now, Germany had always defended national economic sovereignty and rejected stronger European coordination of economic policy in the Eurozone”. The German Chancellor, says the article, is conscious that any such moves “would diminish the national sovereignty of member states”.

 

Euro Symbol

This from the book Britain in the European Union Today by Duncan Watts:

The most obvious constitutional change brought about by membership of the EU is ...a surrender of the UK's parliamentary sovereignty to the primacy of Community law.

The Telegraph published a telling view of the EU in July 2007 about the effect of the Lisbon Treaty, which took was signed in December 2007 and went into effect in December 2009. The Lisbon Treaty replaced the EU Constitution, but kept much of the Constitution's tenents. The article points out that Gordon Brown "hid the fact" that the new treaty means "transfers of sovereignty" from Britain.

Luxembourg's Jean-Claude Juncker said Brown was right to hide the loss from the people/

Britain is different. Of course there will be transfers of sovereignty. But would I be intelligent to draw the attention of public opinion to this fact?"...

There is a single legal personality for the EU, the primacy of European law, a new architecture for foreign and security policy, there is an enormous extension in the fields of the EU's powers, there is Charter of Fundamental Rights," he said, listing elements of the old constitution in the proposed treaty.

The European Union, duplicated on a much larger scale through the United Nations, is the secret dream, stewing in its own juice until world leaders like Barack Obama can bring their plans for a one-world-government to fruition. If you have doubts, educate yourself on Senator Barack Obama's senate bill 2433, posing as a companion bill to the UNMDG, to eradicate poverty, through adherence to the United Nation's Millennium Development Goal (UNMDG). Be afraid. Be very afraid. Read The Evil in Senate Bill 2433. This is all part of a much grander scheme. Europe is showing the way...the wrong way.

US Dollar Played by Gold Traders?

The world is playing with the US dollar as though it is nothing more than a ragdoll. A website is asking who perpetrated the "sneak attack on the U.S. dollar this week." Is it a conspiracy?

US Dollar

On Thursday, according to FinancialTimes.com:

The greenback hit one-year lows against a raft of regional currencies. The dollar index, which tracks its value against a basket of six main currencies, hit a 14-month low in afternoon trading in New York....

Gold prices hit an all-time high for the third day in a row, on the dollar’s weakness. Base metals such as aluminium and copper jumped 4 per cent, while crude oil surged almost $3 to more than $70 a barrel.

 And this:

Asian central banks intervened heavily in the currency markets on Thursday to stem the appreciation of their currencies against the US dollar amid fears that their exports could be losing ground against China....

Simon Derrick, at Bank of New York Mellon in London, said: “Other Asian central banks outside China are naturally looking to aggressively defend their competitive edge against undesirable currency strength as the dollar weakens.”

Earlier in the week, reports surfaced saying that world powers, Gulf Arab states, China, Japan and Russia are considering, and talking about, buying oil through a basket of world currencies, and dumping the US dollar. We know the discussions are going on. We know the United Nations is urging a one-world-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.

 But the question seems to be, was the US dollar attacked this week?

At the end of the day, a hefty dose of gold's stupendous intra-day strength and the dollar's major swoon came from nothing but intrigue and innuendo. Swirling rumours that oil-producing nations were, or are, secretly plotting to dump the dollar as a settlement vehicle for oil payments, lit a giant bonfire under the gold trading pits, and almost gave the gold bugs a tangible manifestation of their wildest dream come true: the one involving a coffin and the US dollar. Underscore: almost.

 Bloomberg says this: 

Even the most dollar-pessimistic sources we polled, following this morning's heavily rumour-laden media blitz about the topic do not envision a possible estrangement from the US currency as the price benchmark for oil before 2018 (!) rolls around, if then. So, if anyone thinks that the IMF meeting in Istanbul is but a ruse for euthanizing the greenback, we say - think again.

Note the exclamation point. As I reported earlier this week, there is plenty of reason to believe that the plan is to dump the dollar. So, if not now, then in 2018! The reason for the delay is probably due to investors needing time to get their money out of the U.S.

If it was gold traders this time, it will be Soros (or maybe it was Soros), and then it will be the Arabs and the Chinese. Listen up America. 2018 is 9 short years away, and what do you think will happen between now and then?

Related:

Gulf Arab States; Oil Producers Deny Dollar Dump

Oil for Basket of Currency: Falling dollar Road to One World Currency?

Gulf Arab States: Oil Producers Deny Dollar Dump

Gulf Arab States and Russia deny plans to dump the U.S. dollar as the currency for oil trading. The Russian deputy finance minister, Dmtry Pankin, said there was no discussion of giving up the USD for a basket of currencies. Saudi's central bank chief said the reports are "absolutely incorrect."

Gulf Arab States 

Converting oil purchases to non-dollar purchases is hot news. There are abundant statements from world leaders to make the effort believable:

Russia has in the past publicly raised the idea of shifting its oil trade away from the dollar because of the weakness and volatility of the currency, which has been undermined by the U.S. trade and budget deficits.

China, holder of the world's biggest foreign exchange reserves, has suggested that in the long term, the dollar should lose its role as the globe's top reserve currency.

The above report, however, offers a reason why dumping the dollar may not be feasible:

And apart from the strong political links between Gulf nations and the United States, the lack of convertibility for many Gulf currencies and the yuan tops the list of practical hurdles to making such a shift.

The United Nations wants the USD diminished. China wants it. Treasury Secretary Timothy Geither is open to the suggestion.

Denials from oil producers are flying today regarding dumping the dollar, but perhaps they "protesteth" too much. This is exactly the time to take these efforts seriously. Read Oil for Basket of Currency: Falling Dollar Road to One World Currency? - fresh from yesterday's news. The danger signs are clear.

Oil for Basket of Currency: Falling Dollar Road to One World Currency?

Purchasing oil by dumping U.S. dollars for a basket of currencies is being discussed world-wide. Non-dollar oil payments are increasingly favored by world financial powers, and especially those countries relying on the Middle East for their oil concessions. See video below.

 Currency

The U.S.'s dismal financial management and lack of any responsible monetary policy, has given the rest of the world, like China, the Middle East and Russia, the boost to get the talks going. How attractive - moving the world aways from the almighty USD. Is now the time for these U.N. loyalists to follow the U.N. lead and establish a one-world-currency? We've been whispering about it for years. If we start with non-dollar oil purchases, can that evolve into the U.N.'s coveted one-world-currency?

This from Mark Reinoso at The Examiner:

The UN wants to replace this collapsing currency with a world currency, or SDR's, for international transactions in order to "provide more stability". This is just the first step in order to move away from the US dollar.  As soon as the US dollar ceases to be the world's reserve currency, no one will have use for it, and this country will collapse.  What the UN doesn't realize is, that when the US dollar dies, it will take the rest of the world with it.

How about considering the new "unified" currency soon to come from the Middle East? Add the euro, the yen, some gold - shake it all together and buy your oil. Reports say the rouble will join the basket of currencies in the near future.  The USD? pffffftttt.

This from Robert Zoellick, World Bank President:

The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations," he said in Istanbul ahead of meetings this week of the IMF and World Bank.

But it is China's extraordinary new financial power – along with past anger among oil-producing and oil-consuming nations at America's power to interfere in the international financial system – which has prompted the latest discussions involving the Gulf states.

China sees President Obama as "too busy" to understand what is happening:

Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018.

These plans will change the face of international financial transactions," one Chinese banker said. "America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate.

In the video below, you will see that Treasury Secretary Timothy Geithner was "open" to a proposal for a single currency by the governor of China's central bank. The Washington Times:

Treasury Secretary Timothy F. Geithner and Austan Goolsbee, member of the Council of Economic Advisers, have refused to rule out a global currency. Such views by top policymakers cause the dollar to drop. Even worse, this shows that the Obama administration supports dramatically greater centralization on a national and international scale.

Timothy Geithner One World Currency (video)


Photo credit: SXC by majeye