China backs talks on dollar as reserve -Russian source

[Antaletriangle]

As a backup to this thread;
http://www.projectavalon.net/forum/s...ad.php?t=12196

Mar 19, 2009
By Gleb Bryanski
http://www.reuters.com/article/usDol...93633020090319
MOSCOW, March 19 (Reuters) - 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 decisionmaking 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."

Russia holds about half of its reserves, the world's third-largest, in dollars, with the rest in euros and pounds. Prime Minister Vladimir Putin has called on reserve currency issuers to show more financial discipline.

Finance Minister Alexei Kudrin told reporters on the sidelines of the G20 finance ministers meeting that it would take up to 30 years to create a new super-currency, suggesting there was no unity in Russia on the issue.

President Dmitry Medvedev's top economic aide and G20 sherpa Arkady Dvorkovich is behind the Kremlin's G20 proposals, made public one day after Kudrin returned from England. (Reporting by Gleb Bryanski; editing by Mike Dolan/Patrick Graham)

[eraser2012]

I'm not sure the extent to which most of the subscribers realize how big a deal this actually is, although I would suspect users here are closer to that understanding than most. I won't write a novel here, although that could be done easily given the quantity of data and information that has been pouring over this topic across the world and Internet. Here are the basic things which make this HUGE for the entire world:

1. Although they are presently talking about a new "reserve" currency, or basket of currencies, it is in the shadow of much discussions and planning regarding regional currencies (the Amero, for example for the North American Union) as well as more recently making news the discussions about a new, single global currency. This is all conditioning so that the people of the world will accept a single world currency model. This is a very bad thing as the reasons below indicate.

2. A new single world currency would be tantamount to the a single regulatory system and, shortly thereafter, a single governmental system which controls all "freedoms", choice, laws, etc. It is a very necessary component to the new world order that a single currency emerge and quite possibly the main reason for the economic destruction that is being leveled by the string pullers.

3. The fewer world currencies there are, the less gold/silver provide any level of protection against inflation or wealth destruction. This equates to total financial control by the State over all of humanity and we all know what happens in countries in which this is the case.

4. Lastly, a decision even to divest in the US Dollar into but an element of the reserve basket from sole position undermines tremendously the control the US will wield in the world's financial markets.

This will mark the official end to US super power status.

[peaceandlove]

China Calls for New Global Currency

Mar 24 06:47 AM US/Eastern
By JOE McDONALD
AP Business Writer

BEIJING (AP) - China is calling for a new global currency controlled by the International Monetary Fund, stepping up pressure ahead of a London summit of global leaders for changes to a financial system dominated by the U.S. dollar and Western governments.

The comments, in an essay by the Chinese central bank governor released late Monday, reflects Beijing's growing assertiveness in economic affairs. China is expected to press for developing countries to have a bigger say in finance when leaders of the Group of 20 major economies meet April 2 in London to discuss the global crisis.

Article continues: http://www.campaignforliberty.com/wire.php?view=3618

[Adarajones]

More on that............

http://www.themoscowtimes.com/article/600/42/375364.htm

At G20, Kremlin to Pitch New Currency

Tuesday, March 24, 2009
Updated at 24 March 2009 1:12 Moscow Time.
The Moscow Times » Issue 4105 » Business

At G20, Kremlin to Pitch New Currency
17 March 2009By Ira Iosebashvili / The Moscow TimesThe Kremlin published its priorities Monday for an upcoming meeting of the G20, calling for the creation of a supranational reserve currency to be issued by international institutions as part of a reform of the global financial system.

The International Monetary Fund should investigate the possible creation of a new reserve currency, widening the list of reserve currencies or using its already existing Special Drawing Rights, or SDRs, as a "superreserve currency accepted by the whole of the international community," the Kremlin said in a statement issued on its web site.

The SDR is an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries.

The Kremlin has persistently criticized the dollar's status as the dominant global reserve currency and has lowered its own dollar holdings in the last few years. Both President Dmitry Medvedev and Prime Minister Vladimir Putin have repeatedly called for the ruble to be used as a regional reserve currency, although the idea has received little support outside of Russia.

Analysts said the new Kremlin proposal would elicit little excitement among the G20 members.

"This is all in the realm of fantasy," said Sergei Perminov, chief strategist at Rye, Man and Gore. "There was a situation that resembled what they are talking about. It was called the gold standard, and it ended very badly.

"Alternatives to the dollar are still hard to find," he said.

The Kremlin's call for a common currency is not the first in recent days. Speaking at an economic conference in Astana, Kazakhstan, last week, Kazakh President Nursultan Nazarbayev proposed a global currency called the "acmetal" -- a conflation of the words "acme" and "capital."

He also suggested that the Eurasian Economic Community, a loose group of five former Soviet republics including Kazakhstan and Russia, adopt a single noncash currency -- the yevraz -- to insulate itself from the global economic crisis.

The suggestions received a lukewarm response from Foreign Minister Sergei Lavrov on Saturday.

Nazarbayev's proposal did, however, garner support from at least one prominent source -- Columbia University professor Robert Mundell, who was awarded the Nobel Prize in 1999 for his role in creating the euro.

Speaking at the same conference with Nazarbayev, he said the idea had "great promise."

The Kremlin document also called for national banks and international financial institutions to diversify their foreign currency reserves. It said the global financial system should be restructured to prevent future crises and proposed holding an international conference after the G20 summit to adopt conventions on a new global financial structure.

The Group of 20 industrialized and developing countries will meet in London on April 2.

[Antaletriangle]

http://www.terradaily.com/reports/Ru...emlin_999.html

Russia, China cooperate on new currency proposals: Kremlin


by Staff Writers
Moscow (AFP) March 30, 2009
Russia and China are coordinating proposals on a new global currency that could replace the US dollar as a reserve currency to prevent a repeat of the global economic crisis, the Kremlin said on Monday.
"We have received proposals from our colleagues in China, detailed proposals," President Dmitry Medvedev's top economic adviser Arkady Dvorkovich said. "Our positions are very similar.

"We have similar positions on the development of the international financial architecture," he told reporters.

Ahead of the Group of 20 summit in London later this week, the Kremlin has published a raft of proposals to overhaul the global economic order, including plans for a supra-national currency that could replace the US dollar.

China has come forward with similar ideas.

US President Barack Obama has said he does not see why the dollar should be replaced and British Prime Minister Gordon Brown said the summit would have more immediate issues to discuss.

"So far, not everybody is ready for that," acknowledged Dvorkovich. "We will insist on that at all levels."

Medvedev has said the international community should have a say when the world's richest countries make decisions with global implications, as in the US financial crisis, sparked by the collapse of the market for subprime or higher risk mortgages.

Moscow also understood however, that many countries were not ready to undertake additional "political obligations," said Dvorkovich, expressing hope that major economies would at least be open to consultations on the subject.

Dvorkovich said he hoped Russia and other major developing economies would also get an equal say and the attention they deserve during the G20 meeting.

"We are hoping that our voice will be heard but I would like to stress that we do not have a desire to pit our voice against that of our partners," he said, referring to developing economies Brazil, India and China who join Russia in what is known collectively as 'BRIC.'

"There will be no separate joint (BRIC) communique, nor should there be," Dvorkovich said. "This is the summit of the leaders of the G20 countries."

Critics have suggested China and the United States, whose economies are closely intertwined, would likely steal the show by promoting their own agenda and turning the G20 forum into a 'G2' summit.

Dvorkovich said the US and China would have ample time to discuss bilateral issues on the summit's sidelines

Separately, Dvorkovich said Medvedev would meet Australian Prime Minister Kevin Rudd on April 1, just before the summit. Medvedev was also scheduled to meet US President Barack Obama, China's Hu Jintao and Britain's Brown that day.

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[Steve_A]

Hi eraser2012,

There is a more sinsister way of looking at this proposal.

Making a global currency based on values of other currencies or 'basket' of currencies will be based on what? Will this basket of currencies be based on gold again or just 'trust' which would bring us back to the $ standard.

When the ECU was born, all participating European nations had to limit their spending and tighten the reigns on the budget deficit, actually if I remember rightly were not allowed to have a budget deficit. That would control the 'trust' of the different currencies and stabelize the exchange rate between them.

In the case of the US if this were to happen, it would never even get a look in.

But all other poorer countries who have large debts and difficult budgets to try and balance wouldn't either.

This would effectively leave the global currency affordable to only a few nations, like China, France, Germany and the such.

Having the IMF controlling any kind of global currency is like giving your loaded gun to your assailant. The IMF has such close links to the Federal Reserve it's uncanny.

The IMF lend money to poorer nations in return for interest on the loan and political agreements, in the case of Brazil, the sale of rain forrest and raw materials to American companies and the purchase of finished goods from the same.

It will be interesting to see how all of this plays out.

Best regards,

Steve

Originally Posted by eraser2012

I'm not sure the extent to which most of the subscribers realize how big a deal this actually is, although I would suspect users here are closer to that understanding than most. I won't write a novel here, although that could be done easily given the quantity of data and information that has been pouring over this topic across the world and Internet. Here are the basic things which make this HUGE for the entire world:

1. Although they are presently talking about a new "reserve" currency, or basket of currencies, it is in the shadow of much discussions and planning regarding regional currencies (the Amero, for example for the North American Union) as well as more recently making news the discussions about a new, single global currency. This is all conditioning so that the people of the world will accept a single world currency model. This is a very bad thing as the reasons below indicate.

2. A new single world currency would be tantamount to the a single regulatory system and, shortly thereafter, a single governmental system which controls all "freedoms", choice, laws, etc. It is a very necessary component to the new world order that a single currency emerge and quite possibly the main reason for the economic destruction that is being leveled by the string pullers.

3. The fewer world currencies there are, the less gold/silver provide any level of protection against inflation or wealth destruction. This equates to total financial control by the State over all of humanity and we all know what happens in countries in which this is the case.

4. Lastly, a decision even to divest in the US Dollar into but an element of the reserve basket from sole position undermines tremendously the control the US will wield in the world's financial markets.

This will mark the official end to US super power status.