United Nations To Recommend 86ing the Dollar in Panel Discussion Next Week
LUXEMBOURG (Reuters) – A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.
Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.
Central banks hold their reserves in a variety of currencies and gold, but the dollar has dominated as the most convincing store of value — though its rate has wavered in recent years as the United States ran up huge twin budget and external deficits.
Some analysts said news of the U.N. panel’s recommendation extended dollar losses because it fed into concerns about the future of the greenback as the main global reserve currency, raising the chances of central bank sales of dollar holdings.
Russia is also planning to propose the creation of a new reserve currency, to be issued by international financial institutions, at the April G20 meeting, according to the text of its proposals published on Monday.
It has significantly reduced the dollar’s share in its own reserves in recent years.
The sad thing is I don’t even think Obama cares – I think he would like for this new weighted currency and for America to take a back seat to the rest of the world to stop any perceived inequalities that have occurred over the years – as we have seen, Obama prefers to punish the successful. Just based on the way he is running things – it is obvious he doesn’t like to stand out and be dominant, rather equal and mediocre at best.
Persaud said the panel had been looking at using something like an expanded Special Drawing Right, originally created by the International Monetary Fund in 1969 but now used mainly as an accounting unit within similar organizations.
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 indeed against those inside the basket.
“There is a moment that can be grasped for change,” he said.
Persaud said there were two main reasons why policymakers might consider such a move, one being the current desire for a change from the dollar.
Oh – the irony of the mere mention of Change!
And if anyone was the least bit curious to see where The United Nations sees America in the coming years here is the best quote:
Persaud has long argued that the dollar would give way to the Chinese yuan as a global reserve currency within decades.
A shared reserve currency might negate this move, he said, but he believed that China would still like to take on the role.
Thank you to all the gullible, ignorant masses for voting in this empty suit.
