UN Calls For New Reserve Currency

Source

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."

He said: "Greater use of a truly global reserve currency, such as the 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.

Good find.

Yep ... it was coming.
Didn't he webbot say something about this for October 25th?
It was just a matter of time before the world ganged up and killed the dollar.
Looks like that time has come.

Everybody wants to be around you when you're up, no one knows you when you're down. Such is life for the common man and for countries, too.

reply to post by johnny2127


Well, Drudge turned out to be right, I guess.

So I suppose this means we're boned.

Now nobody in the World will be using the dollar except for us?

Or maybe I am misreading the implications in this?

The only people overreacting to this is us. Ron Paul and tons of other people tried to warn us about our disastrous economic policies. Of course our policies would lead us to the end of our economic policies. These reactionaries need to quit whining and start setting the right direction for American policy. That is a policy away from statism and more towards more of a realistic system. That is we need to move away from Keynesian economic theory and more to something more realistic here.

This is great news. The dollar will become far stronger, which will make imported goods and commodities less expensive.

Originally posted by stevegmu
This is great news. The dollar will become far stronger, which will make imported goods and commodities less expensive.

Are you crazy? You really think this is good for the dollar? If you are serious you must not understand economics.