Time to ditch the dollar

[jakeXT]

The world is looking to reduce its reliance on the US. A global reserve bank with a truly international currency is the solution


Nick Dearden
guardian.co.uk, Wednesday 2 September 2009 11.30 BST

Emerging states such as China, Russia, and Brazil have finally had enough of the rule of the dollar. When Alistair Darling meets his counterparts at the G20 finance ministers' meeting this weekend, he should join them and right this "exorbitant privilege" that allows US overconsumption to be subsidised by the rest of the world.

...

Last week Stiglitz told Americans that it was not merely that "there is something a little unseemly about poor countries lending the United States trillions of dollars, now at an interest rate of close to zero" but it also damaged the US because "we are exporting T-bills rather than automobiles, and exporting T-bills doesn't create jobs."

Reformers are not asking for the dollar to be replaced by an alternative national currency. That would simply tie the global reserve to the domestic politics of a different country. But they do believe the IMF's own "currency" known as special drawing rights (SDRs) could show the way to a better solution.

.....

But this doesn't mean the IMF's action has nothing useful to offer. A new institution – a global reserve bank – could be established that would regularly issue an international currency like the SDR to those who need it most and at times (such as recession) when it is needed most.

The global reserve currency would no longer be tied to the volatile exchange rate of a national economy, making it more stable, and poor countries would not have to spend precious funds insuring their economies against collapse. And, if tied to a new global framework, such a mechanism could ensure that debtor and creditor countries share responsibility for returning the economy to equilibrium by discouraging large deficits and excessive surpluses.

...



http://www.guardian.co.uk/commentisfree/2009/sep/02/dollar-world-reserve-curreny




Pick your poison IMF or FED?

[sharp_stick]

1. Oh man I can see the right

getting all worried about UN black helicopters and New World Government again. Isn't this one of their favorite paranoid fantasies? A global currency coming just before the overthrow of the US and our subjugation to a World Government?

I wonder how this will be spun as Obama's fault but you know it will be and then there will be another run on ammo.

[BeHereNow]

2. 2003 is when I ditched a great deal of dollars...

POG is near a thousand today...
PoS has nearly tripled since then.

AS I RECALL, there once was a team of posters
on DU making fun of people who advocated diversifying
assets, buying PMs and so forth.

Wonder where they are now?

BHN