United Nations report calls for abandoning the U.S. dollar

[Twisted Titan]

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.

"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 loss of value of the U.S. dollar 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.

It 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.

Nobel Prize winner Joseph Stiglitz, who previously chaired a U.N. expert commission that considered ways of overhauling the global financial system, is among the economists who have advocated the creation of a new reserve currency system, possibly based on SDRs.

http://www.reuters.com/article/idUSTRE65S40620100629

[I am me, I am free]

Only the oblivious cannot see at this point it's only a matter of time until the FRN is dumped, and in this world that's mostly 'merikans - everyone else gets it, pretty much.

Thx for the update TA.

[gunDriller]

i can see them adopting a unit of trade, name TBD, that is exchangeable for 10 grams of gold (1/3 of an ounce), or 20 ounces of silver (20 SAE's).

right now a 10 gram Pamp Suisse bar and a 20-roll of SAE's are both about $410.

i'm not saying there's anything logical about it. it's just the medium of exchange that came to mind.

[Twisted Titan]

Only the oblivious cannot see at this point it's only a matter of time until the FRN is dumped, and in this world that's mostly 'merikans - everyone else gets it, pretty much.

Thx for the update TA.



Coming sooner rather than later.........

[Apparition]

No surprise.

Sooner or later, the dollar will collapse or be dumped.

I have a morbid fascination with what will very likely result so crank up that printing press, Mr. Bernanke.

[madfranks]

In a world of fiat money, the following statement:


stable reserve currency

is an oxymoron.

[I am me, I am free]

Disclaimer. DEMO COIN
http://news4themasses.files.wordpress.com/2009/07/back-of-world-currency-coin.jpg?w=420&h=200

Expect the production version to be made out of pot metal...


Of course what is actually planned is digital currency, and with India in the process of issuing biometric ID cards to EVERY Indian I'd say they are 'on track', at least in the fictional world they've created. We'll see.

[Steal]

Disclaimer. DEMO COIN
http://news4themasses.files.wordpress.com/2009/07/back-of-world-currency-coin.jpg?w=420&h=200

Expect the production version to be made out of pot metal...


Of course what is actually planned is digital currency, and with India in the process of issuing biometric ID cards to EVERY Indian I'd say they are 'on track', at least in the fictional world they've created. We'll see.


Dont know how I missed hearing that. Anyone have a valid link handy. Might be good to forward to a couple family members who are in denial.

[I am me, I am free]

Disclaimer. DEMO COIN
http://news4themasses.files.wordpress.com/2009/07/back-of-world-currency-coin.jpg?w=420&h=200

Expect the production version to be made out of pot metal...


Of course what is actually planned is digital currency, and with India in the process of issuing biometric ID cards to EVERY Indian I'd say they are 'on track', at least in the fictional world they've created. We'll see.


Dont know how I missed hearing that. Anyone have a valid link handy. Might be good to forward to a couple family members who are in denial.


http://www.google.com/search?q=biometric+id+cards+in+india&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a

[Silver Rocket Bitches!]

SDRs are definitely picking up steam.

I remember a year ago:

Zhou Xiaochuan, China's central bank governor, earlier this month said the world should consider the SDR, a basket of dollars, euros, sterling and yen, as a super-sovereign reserve currency.

Geithner, responding to a question, said he hadn't read Zhou's proposal but added, "as I understand it, it's a proposal designed to increase the use of the IMF's Special Drawing Rights. I am actually quite open to that suggestion."


However, they're shit. They do nothing to move away from the fiat debt-based money model.

from http://www.marketoracle.co.uk/Article20560.html


THE S.D.R. STRAWMAN NON-SOLUTION

As preface, consider the best parts of the patchwork SDR vehicle, and what benefits it offers. The Special Drawing Rights, denominated in US dollars, has their nominal value derived from a basket of currencies, tied to fixed amounts of Japanese Yen, USDollars, British Pounds, and Euros. The proportion each of these four currencies contributes to the nominal value of a SDR, reset every five years. A greater role for the SDR either to store foreign acquired reserves or to conduct transaction settlement does offer greater stability. It does so by essentially fixing the currency exchange rates within the participating group of currencies. While ignoring the reality of changing environment, it enforces stability from instilled constancy. Maybe the SDR could reset the component percentages every six or twelve months, instead of five years. The world is changing fast. The other benefit would be the greater confidence that comes when foreign reserves can be placed in a stable warehouse shed, even if the place is rotten, has rancid acid spread about, and smells horrid.

The SDR concept reveals desperation among the Western bankers, led by the Anglos. Their idea of switching (hardly reverting) to the SDR reveals desperation to retain continuity within a broken system. We see Europe struggling to maintain the unified Euro currency, bailing out banks for badly impaired sovereign debt, with the cost being to the entire European continent. By holding together, they sink together from a broken system. Leaders rarely choose to look at why it is broken, preferring to put a typical bandaid or tourniquet on the gaping wounds. Instead of the patient walking, he stumbles quickly when on foot, only to reveal a new gaping wound. The patient needs to be shown the morgue, and its clan to claim its wretched toxic inheritance from the corrupted strongbox brought forward.

The Special Drawing Rights is a life extension concept without solution, a reprieve without consequence. It represents tying a noose around the four major world currencies, so that they most assuredly sink together, hardly a raft, more like shackles. However, in the eyes of the Anglos, those Wall Street and London craftsmen of toxic bonds, and of clever insurance contracts against their own clients death (conflict of interest), the SDR is a poor attempt to divert attention away from viable constructive solutions. For two years, the Jackass has mentioned a Grand Paradigm Shift underway from the USDollar in both banking and commerce. The IMF SDR is an attempt to detour the G-20 nations from seeking a better vehicle that actually operates efficiently without toxic fumes of ruined debt and seized engines of insolvent banks.

The mere fact that the G-8 Meeting has been eclipsed and supplanted by the G-20 Meeting carries great meaning. The Western dominated smaller G-8 is being recognized as an assembly of failures, not only champions of failed fiat currency and failed central bank franchises and insolvent banking systems and broken economies, but the responsible parties for export of toxic bonds that pollute most emerging economies. The mere thought floated of new SDR bonds or new FX contracts to link with the SDR cause nausea, since they come with no credibility. Expect zero progress on these mechanics.

The Anglo leaders of the G-8 Wolfpack wish to subvert the larger group of nations and their broad initiative to seek a workable sweeping solution, since it would surely not center on the USDollar. The G-20 nations clearly perceive the USDollar as exhausted, lacking viability, and the source of much of their own internal instability. The Anglo-led Fiat Monetary Brigade must pre-empt a Paradigm Shift away from worthless currency backed by nothing, the fiat system, centered upon the USDollar. The Anglo Bankers appear to pursue another vehicle for principal usage, one still under the control of the developed world. Translation: by Anglo Bankers. It is merely a group of integrally connected similarly damaged vehicles. The Intl Monetary Fund currency, the Special Drawing Rights is the perverted goal for broader global usage as replacement to the USDollar, in a stay of execution, a delayed trip to the cemetery. My view is that the G-20 has no interest whatsoever in any broader SDR usage, which they see as the same toxic bundled fiat papyrus that cannot float well in the oceans, showing different ink on its flag. The paper currencies are doomed to die together, alone or in a bundle. They are all denominated debt masquerading as money. The foundation for any SDR vehicle would be just as damaged from a balance sheet perspective, maybe worse. The IMF is merely a commisioner office for the broken fiat team members, complete with rotating chairs. Furthermore, admission of its own insolvency has come forth. The head of the IMF policy steering committee, Youssef Boutros-Ghali announced the fund requires $320 billion in order to be properly resourced, in his words. So they are broke too! The jig is up in full view. Boutros-Ghali admitted that the IMF is essentially insolvent in its current form.

Fortunately, the broader group of organized nations is wise to the failure of the current system. They increasingly defy the smaller group of formerly powerful industrial nations. They hold outsized reserves in toxic bubble bonds, no longer of the mortgage variety, but instead the sovereign variety. Emerging nations are worried sick that years of labor and export surpluses have been directed, under US-UK guidance, into tainted US$-based bonds and Euro-based bonds. The damage suffered from the EuroBond holdings has them scared witless of a larger series of losses from the bubblicious USTreasury Bonds, kept inflated by monetization with increasingly awareness and publicity. They see their FOREX reserves supported by a Printing Pre$$, which they readily recognize as a Banana Republic hallmark. The news of a ruined Gulf of Mexico ecosystem and shoreline adds to the tragic Third World image for the United States.

The entire movement of the IMF SDR to serve as next global currency smacks of putting a new paint job on a rusty clunker car, essentially a bait & switch but in package form. The SDR is a Strawman of no substance whatsoever. This man cannot walk, cannot bear weight, and cannot withstand storms. The SDR concept is designed to scare away the legitimate architects of a valid solution. What is lacking in the intellectual discussion among architects on the broken side of the table is an absolute truth, the Sound Money Axiom.

[k-os]

SDRs are definitely picking up steam.


The last time I flew on an airline (March 2010), the ticket said that lost baggage (and/or accident?) claims would be paid in SDRs. I thought that was weird. I never noticed that before.

[wallew]

Only the oblivious cannot see at this point it's only a matter of time until the FRN is dumped, and in this world that's mostly 'merikans - everyone else gets it, pretty much.

Thx for the update TA.

Free,
You ARE aware that there are more FRN's OUTSIDE THE USA THAN INSIDE?

By a factor of two I believe. And that DOES NOT include the counterfeit stuff.

And there are several billion FRN's in circulation INSIDE the USA.

BTW, let us not forget how the US military literally found $1M FRN's in Sadaam's spider hole? The guy was CARRYING one million US dollars around with him in a metal case.

Do NOT fool yourself into thinking otherwise.

The FRN IS LITERALLY THE WORLDS CURRENCY AT THIS TIME.

Though I do suspect that's about to change for numerous reasons. TPTB have decided that the United States of America is about to be 'devalued' severely.

Hopefully if you are here, you are prepped for it.

[Kali]

http://www.google.com/search?q=biometric+id+cards+in+india&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a


It's been a year since that news came out...how's it going?

[Steal]

http://www.youtube.com/watch?v=c4IyUQzdZtU&playnext_from=TL&videos=0wbLWt6iM5w&feature=sub