And Now The Bell Tolls... UN Calls For New Global Currency... LINK

This continues to loom as a major crisis for the US Financial System. First, every fee generated for US Financial Banks by other countries having to convert their currency into dollars in order to pay for oil and other trade commodities WILL EFFECTIVELY DISAPPEAR. Second, the massive holdings of US Dollars stand to take a huge dive as Dollars are dumped by foreign holders like China for alternative currencies and/or converted into real commodities --like real estate, hard assets like gold, readily convertible financial contracts, etc. And third world countries with valuable natural resources(ie. Oil) will be able to sell their commodities directly to China, Russia, etc. without a surcharge for converting payments into dollars. Balance of power to influence such transactions will shift away from the US.

The greediest of Wall Streeters and Corporations have wrung the US Financial System to the tune that the US now faces a very unfavorable environment in which to dig itself out of the "hole" they created for the country.

And The Bell now tolls ... and it tolls for us ....

http://rawstory.com/08/news/2009/09/07/united-nations-calls-for-new-world-currency/

"The United Nations Conference on Trade and Development said in a report published Monday that the U.S. dollar should be replaced as the world’s standard reserve currency, giving rise to a new global currency managed by an as-yet undetermined financial regulatory organization.

Heiner Flassbeck, director of the conference, told Bloomberg News that changes needed in the world’s financial systems rival the scope of the Bretton Woods or European Monetary System agreements.

The Bretton Woods agreement established in 1944 the International Monetary Fund and World Bank, following allied victory in World War II."

SKIP

" Also on Sunday, a key Chinese official predicted that the dollar’s increasing supply, which grows with added liquidity, meant the currency could “fall hard” within “a year or two.” The official also signaled that China is moving its reserves away from the dollar and toward gold, euros and yen."

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The greediest of Wall Streeters and Corporations have wrung the US Financial System to the tune that the US now faces a very unfavorable environment in which to dig itself out of the "hole" they created for the country.

then we should quit buying their junk.

They know that they'd take an economic hit, which makes it somewhat less likely to happen.

for quite a while...

Not shocking nor surprising.

This is the end of Empire.

ridicule for it too.

China has taken all it's gold from London reserves.
Game over.

And Fek the Fekkers, who called us "CT's"

It's about to get really ugly.
And WE WERE RIGHT all along.

BHN

become real...

I have a knack for writing prophecy.

I've been trying to shore up cash reserves. I guess that's not such a great idea now.

I do have stockpiles of essentials.

Other than that, anything I can do to help my family of four survive the coming storm?

most notably for you (probably), US farmland.

But the dollar's demise is wildly overstated. Maybe in 50 years, not in 1 or 2. If the dollar collapsed, China would have at least as many unemployed people as we have people.

Try dealing with 400 million, hungry, unemployed, removed from their land, people. They tend to get a little angry and politically active. Even in China.

China has every bit as much a problem with the dollar's demise as the US does.

As for the US's future, look to post war Britain, but add in much more agricultural capacity. Maybe it means we are, even as we type, creating a generation of highly talented musicians a la the London music scene of the 1960s. :)

Here's where we are:

Right now, our debt is being finance by short term treasuries.

Those treasuries are being sold at very low interest rates because everyone is scared and treasuries seems like a good safe harbor.

As alternatives are developed and the fear subsides, the interest rate on those treasuries will rise - that will be the first signal to look for.

HOWEVER:

If there were a war or talk of war, people would once again look for a safe harbor. Moreover, at the end of really big wars, large chunks of debt are canceled.

Now, our entry to the last few wars took Terror or Sneak Attacks - the attacks proportional to the war that followed.

So, I'm guessing were due for another crack of that whip called Terror.

One-world currency makes people think of endtime tribulation stuff from Revelations. People already have irrational fears about our president, and I suspect that this headline will feed into that paranoia.

Once the world loses confidence in the US economy's ability to bail out the US financial system, then holding US debt will be the equivalent of holding a stock on its way to bankruptcy. There comes a time when you 'know' that there won't be a rebound and you liquidate to recoup whatever you can get.

Sure China will take a massive hit if US consumers quit buying their exports, but look at all the new markets in which China will deal directly from a position of strength without having to convert trade currency to dollars first, and incurring the fees generated by said conversions.

US Financial interests did not bite the bullet when they came to the US taxpayers for their bailouts, and by hoarding the taxpayer money and not using it to revive the US middle class they have created a 'jobless' recovery that for the time being maintains their own financial positions while sinking the middle class consumers.

I am afraid this time the news is bad ....

the "chinese miracle" was created with western & hong kong capital.

nixon's opening to china was phase 1.

in 2002 52.2% of exports from china were by foreign-invested enterprises, & 33% of total chinese manufacturing.

http://books.google.com/books?id=Fn1aWnic_swC&pg=PA103&lpg=PA103&dq=percent+of+chinese+exports+foreign+corporations&source=bl&ots=E9v09VTSIF&sig=CVU1BMog50APXOR5wifmNkOpPhs&hl=en&ei=qw-mSsPMNIaOtAObtOmMDw&sa=X&oi=book_result&ct=result&resnum=3


"The extraordinarily rapid growth of the Chinese economy has depended a great deal on foreign corporations. According to Morgan Stanley's chief economist Stephen Roach, 65% of the tripling of Chinese exports—from $121 billion in 1994 to $365 billion in mid-2003—is “traceable to outsourcing by Chinese subsidiaries of multinational corporations and joint ventures.”1 The export surge blamed on China is primarily an export surge of global corporations using low-wage Chinese workers. Foreign corporations thus fear that the law protecting Chinese workers may eliminate their cheap labor costs"

http://www.fpif.org/fpiftxt/3824


"Over 50 percent of China’s exports to the U.S. are products of foreign-owned
corporations in China, including U.S. corporations."

http://www.allacademic.com/meta/p84307_index.html.

Yes, I know it's not the "global currency" they've been panicking about for years but they never read past the headline.

damn they were right all along :P we'll never hear the end of this.

kicking and screaming into the current century, but so be it.

One of the advantages of a global currency is that it would end speculation and currency trading. One of the major problems, IMO, is people seeking to make money off of money. It's a destabilizing practice that should have been banned a long time ago. Of course I have a problem with who would be making the monetary policy and how they would be accountable for their decisions.

By CHRIS V. NICHOLSON
Published: September 8, 2009

The Chinese Ministry of Finance said Tuesday that it would issue 6 billion yuan worth of government bonds in Hong Kong, a major step to internationalize its currency at a time of concern about the dollar.

The yuan bond issue, worth about $879 million, will “promote the yuan in neighboring countries,” the Finance Ministry said on its Web site, and "improve the yuan’s international status.”

“The first step toward internationalization is regionalization,” Shi Lei, a foreign currency analyst at Bank of China in Beijing, said in an interview. “China wants to develop the offshore market in Hong Kong.”

While domestic banks like Bank of China and the Export-Import Bank of China have issued yuan-denominated bonds in Hong Kong for a couple of years at the encouragement of Beijing, this is the first time that government bonds, the equivalent of U.S. Treasury securities, are to be issued. The sale is set for Sept. 28.

http://www.nytimes.com/2009/09/09/business/global/09yuan.html?_r=1&ref=global-home

- The amount is insignificant, overall. But the signal behind the move isn't.

You exert influence and control over countries 'other than the United States' in a way that precludes the US from intervening, which will have tremendous geo-political ramifications.

At some point, the need for generating a massive military buildup will be avoided as it becomes apparent that the US does not have the funds to respond militarily around the world.

"new global currency managed by an as-yet undetermined financial regulatory organization"??

Or perhaps I should rephrase the question as "How many DECADES...".

UNCTAD is very much out of step with the financial power brokers. UNCTAD tends to ask for social justice for developing countries and tends to get ignored as a consequence. They've asked for a lot of things in terms of favorable trade policies and debt refinancing for developing countries in the past.