Head of IMF Proposes New Reserve Currency
Sat, 27/02/2010 - 07:15
Head of IMF Proposes New Reserve Currency
http://abcnews.go.com/Business/wireStory?id=9958995
Quote:
Dominique Strauss-Kahn, the head of the International Monetary Fund, suggested Friday the organization might one day be called on to provide countries with a global reserve currency that would serve as an alternative to the U.S. dollar.
"That day has not yet come, but I think it is intellectually healthy to explore these kinds of ideas now," he said in a speech on the future mandate of the 186-nation Washington-based lending organization.
Strauss-Kahn said such an asset could be similar to but distinctly different from the IMF's special drawing rights, or SDRs, the accounting unit that countries use to hold funds within the IMF. It is based on a basket of major currencies.
He said having other alternatives to the dollar "would limit the extent to which the international monetary system as a whole depends on the policies and conditions of a single, albeit dominant, country."
I think there are two aspects to this:
1. It's not that long ago that when I suggested the US$ would cease to be the main reserve currency of the world I was laughed at. Who's laughing now 
2. To be replaced by what? Another fiat currency, but this time a global one? Oh great, just what we need!
The problems with that idea are many, but a few:
a. Efficiency versus resilience. The fewer currencies there are, the less resilient the whole system will be.
See:
Bernard Lietaer talking at TEDxBerlin on 30 Nov 2009 - UNMISSABLE
http://neuralnetwriter.cylo42.com/node/2630
b. It's still an unsustainable system.
b. It still involves usury, the charging of interest, and fractional reserve banking.
Those in control like the current system, but the people should know why they should hate it.
My wife's glasses are still great, so I will continue to recommend this company.
Click on the image to see my detailed review:
