U.N. panel says world should ditch dollar

This comes as no surprise to me because for last few months former President Bush and then current President Obama were injecting “imaginary”money into the economy. Then followed by the bailouts, we saw the stock market take a huge turn for the worst, and all of a sudden the media was convincing us to do stay in the stock market (losing more of your savings and 401ks) and sell our valuables to “stay a float”. Then when I started to see ads everywhere for “Cash-4-gold” I knew something was happening and happening quick! If you haven’t realized the plan by now, President Obama’s first order of change for America is to make the dollar fall forcing him to come up with the idea for a global currency (this idea has been talked about by many economist for over ten years now). As Americans the best thing I would suggest doing now is turning off your tv (even local news) and take your money out of the stock market because their agenda right now is not in your best interest.

Wed Mar 18, 2009 11:16am EDT

By Jeremy Gaunt, European Investment Correspondent

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.

Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.

“It is a good moment to move to a shared reserve currency,” he said.

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.

“Speculation that major central banks would begin rebalancing their FX reserves has risen since the intensification of the dollar’s slide between 2002 and mid-2008,” CMC Markets said in a note.

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.

Full Article


One Response

  1. And so the Amero will be born … Soooooo predictable.

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