Tuesday, September 8, 2009

Ill Omens for the Dollar, and Our Economic Future


It doesn't look good at all. In fact it is disastrous. But if you'd been paying attention to reality, not the nonsense perpetrated from the government and the controlled media, you knew this already, and you're preparing.

You are preparing, right?

UN wants new global currency to replace dollar

    London Telegraph -

    In a radical report, the UN Conference on Trade and Development (UNCTAD) has said the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises.

    It added that the present system, under which the dollar acts as the world's reserve currency , should be subject to a wholesale reconsideration.

    Although a number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency, the UNCTAD report is the first time a major multinational institution has posited such a suggestion.

    In essence, the report calls for a new Bretton Woods-style system of managed international exchange rates, meaning central banks would be forced to intervene and either support or push down their currencies depending on how the rest of the world economy is behaving

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China alarmed by US money creation

    London Telegraph -

    A worker smokes in front of a billboard featuring a US dollar banknote on a street in Taiyuan
    Working for the Yankee dollar: Beijing is said to be dismayed by the Fed's recourse to 'credit easing'Photo: Reuters

    Cheng Siwei, former vice-chairman of the Standing Committee and now head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing".

    "We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como.

    "If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.

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