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UN: It Is Time To Scrap The Dollar As Sole Reserve Currency

http://www.reuters.com/article/idUST...Name=topNew s

Quote:

Scrap dollar as sole reserve currency: U.N. report
Tue, Jun 29 2010

By Louis Charbonneau

UNITED NATIONS (Reuters) - 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 says that developing countries have been hit by the U.S. dollar's loss of value in recent years.

"Motivated in part by needs for self-insurance against volatility in commodity markets and capital flows, many developing countries accumulated vast amounts of such (U.S. dollar) reserves during the 2000s," it 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.

MARKETS DECIDE

Jomo Kwame Sundaram, a Malaysian economist and the U.N. assistant secretary general for economic development, told a news conference that "there's going to be resistance" to the idea.

"In the whole post-war period, we've essentially had a dollar-based system," he said, adding that the gradual emission of SDRs could help countries phase out the dollar.

Nobel Prize-winning economist Joseph Stiglitz, who previously chaired a U.N. expert commission that considered ways of overhauling the global financial system, has advocated the creation of a new reserve currency system, possibly based on SDRs.

Russia and China have also supported the idea.

But Paavo Vayrynen, Finland's Foreign Trade and Development Minister, told reporters that he doubted it was possible "to make any political or administrative decisions how to formulate the currency system in the world."

"It is based on the markets," he said. "I believe that the economic players in the market are going to have the decisive influence on that issue."

European Union development commissioner Andris Piebalgs said it would be a bad idea to dictate what the reserve currency should be.

"It is markets that decide," he said. "Any intervention would just create additional challenges and make things even less predictable."

First off, nobody cares what the UN has to say, ever. Secondly, I agree. The dollar is going to lose its reserve currency soon. It should have happened sooner. Thanks bernanke/Greenspan/Krugman!

Quote:

Originally Posted by The Demon (Post 17309197)

First off, nobody cares what the UN has to say, ever. Secondly, I agree. The dollar is going to lose its reserve currency soon. It should have happened sooner. Thanks bernanke/Greenspan/Krugman!

As someone who posts pretty off to the right, you might want to ensure there's at least some form of universal monetary value for the US. Once it's no longer, China will just come in and devalue the fuck out of it - not like we can afford to pay the loans back. Hello, third world country with no money still fighting over wether or not to let the messicans in. Meanwhile, the house and cars are being repossessed as the middle class fails to exist.

It may not be that soon, but it will happen eventually. Most of the world's debt is denominated in dollars. That is not something that can just be turned off.

Also, if the dollar loses it's status as reserve currency of the world does that mean the UN will need to relocate out of New York and we can stop paying for it? ;)

Quote:

Originally Posted by Ethersync (Post 17309228)

Also, if the dollar loses it's status as reserve currency of the world does that mean the UN will need to relocate out of New York and we can stop paying for it? ;)

:1orglaugh:1orglaugh:1orglaugh

must be fun living in your Mighty US world ...

pay for it ... lol

Currently, the U.N. pays rent to the city of New York for office space in two nearby buildings on 1st Avenue for $25 dollars a square foot ...

look it up yourself ...

Quote:

Originally Posted by directfiesta (Post 17309276)

Currently, the U.N. pays rent to the city of New York for office space in two nearby buildings on 1st Avenue for $25 dollars a square foot ...

look it up yourself ...

LOL @ $25 office rents in NYC. They don't happen unless someone is losing money.

I didn't mean to imply we pay for all of it. I think we currently pay 22% of the UN's annual operating budget. More than anyone else.

Quote:

Originally Posted by directfiesta (Post 17309276)

Currently, the U.N. pays rent to the city of New York for office space in two nearby buildings on 1st Avenue for $25 dollars a square foot ...

look it up yourself ...

lmao $25/sq someones losing money.

I personally have my vast wealth invested in Pesos, MRE's, weaponry and ammo, freeze dried yogurt and tin foil hats. After the coming collapse of society a we know it, toilet paper will be more valuable than US currency as there will be a use for it. You heard it here first, and I am only wrong half the time~

it's 1910 all over again.... :(

Quote:

Originally Posted by directfiesta (Post 17309276)

Currently, the U.N. pays rent to the city of New York for office space in two nearby buildings on 1st Avenue for $25 dollars a square foot ...

look it up yourself ...

Wow!!! They pay a whole $25 per sq ft. :1orglaugh:1orglaugh