greenback fades into the new economic reality
I already told you about oil producing countries in the middle east attempting to create their own non-exponential currency (based on gold) for valuing their oil instead of using U.S. dollars.
Last week (June 29th), the United Nations began encouraging countries worldwide to choose some other currency (besides the U.S. dollar) as their reserve currency. They've said it before, but they seem serious this time.
Scrap dollar as sole reserve currency: U.N. report
A new United Nations report released on Tuesday calls for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value. But several European officials attending a high-level meeting of the U.N. Economic and Social Council countered by saying that the market, not politicians, would determine what currencies countries would keep on hand for reserves. "The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency," the U.N. World Economic and Social Survey 2010 said.
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The report supports replacing the dollar with the International Monetary Fund's special drawing rights (SDRs), an international reserve asset that is used as a unit of payment on IMF loans and is made up of a basket of currencies. "A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency," the U.N. report said. The report said a new reserve system "must not be based on a single currency or even multiple national currencies but instead, should permit the emission of international liquidity -- such as SDRs -- to create a more stable global financial system."
"Such emissions of international liquidity could also underpin the financing of investment in long-term sustainable development," it said.
- http://www.reuters.com/article/idUSTRE65S40620100629
They used the key phrase "long-term sustainable development", which is a useful code for people like me who believe that all exponential money systems must fail by design. I hope that their use of that phrase means that people behind the scenes understand that reality, even if they refuse to admit it publicly because of the collapse of confidence it would create in existing exponential money systems worldwide.
Last week (June 29th), the United Nations began encouraging countries worldwide to choose some other currency (besides the U.S. dollar) as their reserve currency. They've said it before, but they seem serious this time.
Scrap dollar as sole reserve currency: U.N. report
A new United Nations report released on Tuesday calls for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value. But several European officials attending a high-level meeting of the U.N. Economic and Social Council countered by saying that the market, not politicians, would determine what currencies countries would keep on hand for reserves. "The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency," the U.N. World Economic and Social Survey 2010 said.
...
The report supports replacing the dollar with the International Monetary Fund's special drawing rights (SDRs), an international reserve asset that is used as a unit of payment on IMF loans and is made up of a basket of currencies. "A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency," the U.N. report said. The report said a new reserve system "must not be based on a single currency or even multiple national currencies but instead, should permit the emission of international liquidity -- such as SDRs -- to create a more stable global financial system."
"Such emissions of international liquidity could also underpin the financing of investment in long-term sustainable development," it said.
- http://www.reuters.com/article/idUSTRE65S40620100629
They used the key phrase "long-term sustainable development", which is a useful code for people like me who believe that all exponential money systems must fail by design. I hope that their use of that phrase means that people behind the scenes understand that reality, even if they refuse to admit it publicly because of the collapse of confidence it would create in existing exponential money systems worldwide.