New UN Report Recommends Ditching The Dollar As Global Reserve Currency

http://www.businessinsider.com/un-report-death-of-the-dollar-as-res...

The United Nations has slammed the U.S. dollar in a new report called Retooling Global Development. They're recommending an end to the
dollar's role as dominant reserve currency, and pushing for a new
global reserve regime based on a supranational currency made up of a
basket of developed nation currencies.

While we've heard this kind of recommendation before, the UN is re-energizing its push. For example, they blame the financial crisis squarely on the dollar system:

UN:

The 2008-2009 global economic crisis demonstrates that the accumulation of deficits by the reserve-currency country, sustained by other countries because of their national policy
objectives, is not self-correcting and leads to a crisis of global
proportions whose costs are incurred by many innocent parties.

Thing is, they also admit that the dollar remains immensely popular as a reserve asset, despite its problems and track record. They even predict that it could become more entrenched as a reserve asset going forward:

To reverse global imbalances, developing countries would need to decrease, not increase, self-insurance [accumulating dollar reserves]. Yet, the success of
self-insurance as protection during the crisis suggests that it will
probably become even more popular going forward.
It is
unlikely that countries will become less dependent on self-insurance
without a real decline in the vulnerabilities associated with volatile
international capital flows.

Thus there's only way to end the dollar's reign -- using global regulatory force:

Before the crisis, there had already been a move towards a multi-currency reserve system, which became more pronounced with the introduction of the euro. At this point in time, it
is impossible to predict how the situation will evolve, absent an explicit political process.

They want a new reserve asset managed by global institutions such as the IMF.

Reducing dependence on the dollar through increased use of a created currency made up of a basket of currencies such as the SDR could be a significant step towards greater
stability in the world economy. Greater SDR use would constitute an
additional tool for creating the international liquidity needed for the
conduct of a global counter-cyclical policy, for which there is already
a precedent, as reflected in the April 2009 decision of the G-20.

It's obviously a complex issue that deserves study, but we'll say this -- while it's easy to point out all of the flaws in the U.S. dollar, the world needs to make sure that whatever replacement they
devise isn't even worse.

The regulatory mechanism for a new global currency would be inordinately complex and would represent a substantial increase in power for supranational institutions such as the UN, since they would
likely control many facets of this new currency.

Proposals to shift to the allocation of SDRs based on need or performance, instead of on the economic significance that determines voting shares in IMF, are of great
interest. Ocampo (2009) proposes giving larger allocations to countries
with the highest demand for reserves and allowing IMF to use unutilized
SDRs to buy bonds from devel- oping countries. Ocampo proposes generous
overdraft or “drawing” facilities which could be used on an
unconditional basis by all member countries and recommends that IMF be
authorized to suspend the right of countries with large surpluses or
excessive reserves to receive SDR allocations.

We're not so sure the world would be much more confident in a basket of currencies managed by the UN or IMF, even in comparison America's questionable dollar management. Any new reserve asset would be
completely untested, and likely distorting of global markets in its own
ways over the long-term. Thus it could easily stoke a new crisis down
the road. Yet it's obviously a complex issue, and worth studying since
the dollar is clearly problematic.

What's odd though is that gold isn't even mentioned in the report as part of any alternative to the dollar. It seems gold isn't even being considered.

Views: 47

Reply to This

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Burbia posted a video
6 minutes ago
Doc Vega posted blog posts
7 minutes ago
cheeki kea commented on tjdavis's photo
6 hours ago
cheeki kea favorited tjdavis's photo
7 hours ago
cheeki kea favorited tjdavis's blog post The Dems Love Their Demons
7 hours ago
cheeki kea posted a blog post
8 hours ago
tjdavis posted a blog post
17 hours ago
Doc Vega posted a blog post

And Another Wilderness Expert Disappears

Thomas Siebold was considered to be a well-trained survivalist. He had hiked and lived in the…See More
yesterday
Doc Vega commented on Doc Vega's blog post In Disarray
"cheeki kea Thanks for your support! "
yesterday
Burbia commented on Burbia's photo
yesterday
Burbia commented on Burbia's video
Thumbnail

IT’S OVER! Trump OBLITERATES IRS as Social Security Just Changed FOREVER!

"The IRS has lost almost one-third of its tax auditors after 2 months of DOGE cuts, report…"
yesterday
Burbia posted videos
yesterday
cheeki kea favorited Doc Vega's blog post In Disarray
yesterday
Burbia commented on Burbia's photo
Thumbnail

What's in Macron's hand? Cocaine bag?

"Russian Spokesperson Maria Zakharova Responds to Macron, Merz, and Starmer’s…"
yesterday
rlionhearted_3 favorited cheeki kea's photo
Monday
rlionhearted_3 commented on cheeki kea's photo
Thumbnail

remember those days..

"True Story "
Monday
Doc Vega favorited cheeki kea's photo
Monday
Doc Vega commented on cheeki kea's photo
Thumbnail

remember those days..

"Ha ha Good one and just about the truth! "
Monday
Less Prone favorited Burbia's photo
Monday
tjdavis posted a photo
Monday

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted