Socio-Economics History Blog

Socio-Economics & History Commentary

China Backs Russia’s Call for New World Reserve Currency!

  • The end of the USD hegemony is near. China and many emerging countries are backing Russia’s call for a new international reserve currency. Reuters reports :
      
    China and other emerging nations back Russia’s call for a discussion on how to replace the dollar as the world’s primary reserve currency, a senior Russian government source said on Thursday. Russia has proposed the creation of a new reserve currency, to be issued by international financial institutions, among other measures in the text of its proposals to the April G20 summit published last Monday.
     
    Calls for a rethink of the dollar’s status as world’s sole benchmark currency come amid concerns about its long-term value as the U.S. Federal Reserve moved to pump more than a trillion dollars of new cash into the ailing economy late Wednesday.
     
    Russia met representatives of China, India and Brazil ahead of the G20 finance ministers meeting last week, as the big emerging powers seek to up their influence on decision making globally. Their first ever joint communique did not mention a new currency but the source said the issue was discussed.
     
    “They (China) did not formally put forward their position for the G20 summit but unofficially they had distributed their paper regarding the same ideas (the need for the new currency),” the source told Reuters, speaking on condition of anonymity.
     
    The source said the Chinese paper envisaged the International Monetary Fund’s Special Drawing Rights (SDRs) being first assigned a role of a clearing currency on some transactions and then gradually becoming the main global reserve currency. “They said that the role of reserve currency should be given to SDR,” the source said.
     
    A U.N. panel of experts is also looking at using expanded SDRs, originally created by the International Monetary Fund in 1969, but now used mainly as an accounting unit within similar organisations as a new reserve currency instead of the dollar.
     
    Currency specialist Avinash Persaud, a member of the U.N. panel, told a
    Reuters Funds Summit on Wednesday that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.
     
    The SDR and the old Ecu are essentially combinations of currencies, weighted to a constituent’s economic clout, which can be valued against other currencies and against those inside the basket.
     
    The Russian source said Moscow was aware that the emergence of the new global currency would not happen overnight and said its goal was to initiate a discussion about it at the G20 summit in London on April 2.
     
    The source said that India did not object to the discussion but was not prepared to take the lead. The source said South Korea and South Africa backed the idea, while developed nations were not “allergic” to it. “We are not waiting for everyone to say: ‘How beautifully it has all been formulated, let’s subscribe to it’,” the source said. “The main idea is to start a discussion about it.
     
       
  • The USD is heading for a massive collapse. The movement towards a 1 world currency is gathering strength. See also :
     
    U.N. Panel says World Should Ditch Dollar ! US is Already Bankrupt !
    Quantitative Easing – Death Knell for Dollar, Re-Igniting the Gold Rocket !
    Let the Currency Wars Begin?
    World Financial System in a State of Insolvency !
    Global Financial & Economic Meltdown
    Global Monetary Meltdown in 2009 ?
    Dollar Devaluation, Debt Default & Gold
    Massive US Dollar Devaluation Against Gold During 2009
    Obama, Roosevelt, Gold Confiscation and Dollar Devaluation 

end

March 21, 2009 - Posted by | Economics | , , , , ,

9 Comments

  1. […] also :    China Backs Russia’s Call for New World Reserve Currency! U.N. Panel says World Should Ditch Dollar ! US is Already Bankrupt ! Quantitative Easing – Death […]

    Pingback by Gold Soars by 8% as Fed Shocks Market Announcement of Dollar Debasement ! « Socio-Economics History Blog | March 21, 2009

  2. […] also :   Fed Destroys the US Dollar, Gold and Euro Soar ! China Backs Russia’s Call for New World Reserve Currency! U.N. Panel says World Should Ditch Dollar ! US is Already Bankrupt ! Quantitative Easing – Death […]

    Pingback by Gold New Upleg as Lunatic Fed Creates $1 Trillion Dollars Out of Thin Air « Socio-Economics History Blog | March 21, 2009

  3. […] also :   China calls for New Reserve Currency – 1 World Currency ‘666′ Just Around the Corner China Backs Russia’s Call for New World Reserve Currency! London G20 Summit: Last Chance Before Global Geopolitical Dislocation – 1 World Central Bank & […]

    Pingback by Single Global Currency « Socio-Economics History Blog | March 26, 2009

  4. […] don’t get this fear of a trade war.  Russia and China at this time are calling on a currency war.  By creating a world currency, it woul….  How can Obama, as President of the United States of America, be so afraid of a trade war that he […]

    Pingback by US Government should buy US made condoms | Moonage Political Webdream | March 27, 2009

  5. […] China calls for New Reserve Currency – 1 World Currency ‘666′ Just Around the Corner China Backs Russia’s Call for New World Reserve Currency! London G20 Summit: Last Chance Before Global Geopolitical Dislocation – 1 World Central Bank & […]

    Pingback by A World Currency Moves Closer After Geithner’s Slip « Socio-Economics History Blog | March 28, 2009

  6. […] China calls for New Reserve Currency – 1 World Currency ‘666′ Just Around the Corner China Backs Russia’s Call for New World Reserve Currency! London G20 Summit: Last Chance Before Global Geopolitical Dislocation – 1 World Central Bank & […]

    Pingback by The G20 Moves the World A Step Closer to a Global Currency! « Socio-Economics History Blog | April 4, 2009

  7. […] China calls for New Reserve Currency – 1 World Currency ‘666′ Just Around the Corner China Backs Russia’s Call for New World Reserve Currency! Towards A One World Currency, One World Central Bank & One World […]

    Pingback by The Creation of a Truly Global Currency with Gold Backing « Socio-Economics History Blog | April 13, 2009

  8. The idea of a world currency makes a lot of sense. Right now, like the English language, the USD is so widespread that it could become the internationally used currency. But of course countries like Russia don’t want that. It’ll be interesting to see what happens in the next couple of years, especially if some of the weaker countries are calling for the USD to be made international…
    Here’s an interesting article:
    http://www.mindreign.com/en/mindshare/Economic-Conditions/A-Call-for-A-New-World-Currency/sl4358145bp283cpp5pn1.html

    Comment by Mike Wright | June 12, 2009

  9. […] end of dollar stranglehold – Telegraph Sarkozy Calls for the End of the US Dollar | EUTimes.net China Backs Russia’s Call for New World Reserve Currency! Socio-Economics History Blog China, Russia to drop dollar in bilateral trade – MarketWatch Russia and China call for replacing […]

    Pingback by Conspiracies you believe/not in? (Keep it civil) - Page 25 - Sherdog Mixed Martial Arts Forums | April 12, 2011


Sorry, the comment form is closed at this time.

%d bloggers like this: