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

Osama bin Laden Boycotts US Goods US Dollar: Osama bin Laden Blames US for Global Warming

Maybe we could call this a Friday Afternoon Funny. Osama bin Laden is asking the world to boycott the American dollar (USD) and American goods. The cave dweller, still believed to be titular head, although significantly neutered, of al-Qaeda, says the US is responsible for global warming.

Just like every Liberal we know:

He blamed Western industrialized nations for hunger, desertification and floods across the globe, and called for "drastic solutions" to global warming, and "not solutions that partially reduce the effect of climate change."

Bin Laden has mentioned climate change and global warning in past messages, but the latest tape was his first dedicated to the topic. The speech, which included almost no religious rhetoric, could be an attempt by the terror leader to give his message an appeal beyond Islamic militants.

The al-Qaida leader also targeted the U.S. economy in the recording, calling for a boycott of American products and an end to the dollar's domination as a world currency.

"We should stop dealings with the dollar and get rid of it as soon as possible," he said. "I know that this has great consequences and grave ramifications, but it is the only means to liberate humanity from slavery and dependence on America."

He argued that such steps would also hamper Washington's war efforts in Afghanistan and Iraq.

At this time, the tape, which aired in part on al-Jazeera television, has not been officially authenticated.

Related and Background:
Ocean Rise; Sea Levels Rise Never Began: Scientists Withdraw Claims of Sea Levels Rising

ClimateGate Phil Jones: No Global Warming Since 1995 Says Jones

ClimateGate 2008: Media Assisted Polar Bear Hysteria: Polar Bears Vanishing? Uh, no. And the Senate Knows it

Hottest Decade in History? Maybe Not - Earth-Based Climate Stations Manipulated

*****Phil Jones Hides Data from 42 Weather Stations

Inhofe Family Igloo Mocks Al Gore's Global Warming

Paul Dennis ClimateGate EMail Leaker? Were the Emails really hacked?

ABC Questions Climate Forecasts: Can Climate Science be Trusted?
ClimateGate: Global Warming Bullies 

ClimateGate Scientist Phil Jones Not Prosecuted: UAE Asks for Jones Resignation  

Murari Lal Glacier Scientist: Unverified Data Used for Political Pressure

Copenhagen Junket Cost Millions - Millions for Failure: Inhofe on Copenhagen Caviar

Copenhagen Hopenhagen Nopenhagen? Rajendra Pachauri Apocalypse Now

EPA Endangerment Finding: Obama's Carbon Dioxide Pollutant: Obama TopDown Control

Andrew Watson Marc Morano: Andrew Watson Calls Marc Morano A-Hole

Chris Horner Sues NASA? NASA Hidden Data: ClimateGate NASA FOIA
Network Media Silent on ClimateGate: Day 14 and Counting

Hide the Decline Graph: ClimateGate Hide the Decline "Trick": Jones and Mann Hide the Decline

Rajendra Pachauri Dismisses Top Warming Scientists: Jim Inhofe ClimateGate Investigation

ClimateGate Phil Jones Steps Down

Philip Jones ClimateGate: Phil Jones Global Chief Liar and Cheat 

CRU Souce Code Decoded: Marc Sheppard Finds the Fudge Factor 

ClimateGate: Global Warming Bullies 

ClimateGate Phil Jones Steps Aside: CRU Climategate Chief Steps Down

Jim Inhofe ClimateGate Investigation: Rajendra Pachauri Dismisses Top Warming Scientists

Scientists may sue Gore over "Warming and Change" Fraud

Jaws Dropped as Solar Scientist, Archibald, Praised C02

EPA Silences, Suppresses Opposition: EPA Lies

The EU's Carbon Trade: A Scheme and a Failure

The Fight for Human-made Global Warming


Important Resources:

Climate Depot

Watts Up With That?

Climate Audit, stephen McIntyre

A list of prominent scientists who have reversed their opinions

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?

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