Regional and World Currencies

Coming Soon:
A Global Central Bank, Global Currency & World Government
© By ANDREW MARSHALL

Following the 2009 G20 summit, plans were announced for implementing the creation of a new global currency to replace the US dollar’s role as the world reserve currency. Point 19 of the communiqué released by the G20 at the end of the Summit stated, “We have agreed to support a general SDR allocation which will inject $250 billion into the world economy and increase global liquidity.” SDRs, or Special Drawing Rights, are “a synthetic paper currency issued by the International Monetary Fund.”

As the Telegraph reported, “the G20 leaders have activated the IMF’s power to create money and begin global ‘quantitative easing’. In doing so, they are putting a de facto world currency into play. It is outside the control of any sovereign body. …

Further, “the creation of a Financial Stability Board looks like the first step towards a global financial regulator,” or, in other words, a global central bank. … Further, “any organisation with the power to police the global economy would have to include representatives of every major country – a United Nations of economic regulation.” …

Emergence of Regional Currencies

On January 1, 1999, the European Union established the Euro … There are moves and calls for other regional currencies throughout the world.

In 2007, Foreign Affairs, the journal of the Council on Foreign Relations, ran an article titled, ‘The End of National Currency’ … The author explains that, “monetary nationalism is simply incompatible with globalisation. … Essentially, according to the author, the solution lies in regional currencies. …

In South America, there are moves to create a regional currency and central bank under the Union of South American Nations, which was established in May of 2008. The Gulf Cooperation Council (GCC), a regional trade bloc of Arabic Gulf nations, has also been making moves towards creating a regional central bank and common currency for its member nations …

From the time of the East Asian financial crisis in the late 1990s, there have been calls for the creation of a regional currency for East Asia among the ten member nations of the ASEAN bloc, as well as China, Japan and South Korea. …

Within Africa, there are already certain regional monetary unions, and within the framework of the African Union, there are moves being implemented to create an African currency under the control of an African Central Bank (ACB), which is to be located in Nigeria.

In North America, there are moves, coinciding with the deepening economic and political integration of the continent under NAFTA and the Security and Prosperity Partnership of North America (SPP), to create a regional currency for North America …

A Global CurrencyIn 1988, The Economist ran an article titled, ‘Get Ready for the Phoenix’, in which they wrote, “thirty years from now … prices will be quoted (in) let’s say, the phoenix. … ” (And) “Several more big exchange-rate upsets, a few more stockmarket crashes and probably a slump or two will be needed before politicians are willing to face squarely up to that choice. … ” The article advocated the formation of a global central bank, perhaps through the IMF. … (and said,) “The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. … The IMF held a conference in 2000 discussing how the world was segmenting into regional currency blocs and that a single world currency was possible, and that it is, in fact, preferable. …

In March 2009, Russia suggested that the G20 meeting in April should “consider the possibility of creating a supra-national reserve currency or a ‘super-reserve currency’,” and to consider the IMF’s Special Drawing Rights (SDRs) in this capacity.38 A week later, China’s central bank governor proposed the creation of a global currency controlled by the IMF, replacing the US dollar as the world reserve currency, also using the IMF’s SDRs as the reserve currency basket against which all other currencies would be fixed. …

US Treasury Secretary Timothy Geithner, former President of the New York Federal Reserve Bank, told the Council on Foreign Relations that, in response to a question about the Chinese proposal, “we’re actually quite open to that suggestion. …

In late March (2009) a UN panel of economists recommended the creation of a new global currency reserve that would replace the US dollar, and that it would be an “independently administered reserve currency.”

Creating a World Central Bank

In 1998, Jeffrey Garten wrote an article for the New York Times advocating a “global Fed.” Garten was former Dean of the Yale School of Management, former Undersecretary of Commerce for International Trade in the Clinton administration, previously served on the White House Council on International Economic Policy under the Nixon administration and on the policy planning staffs of Secretaries of State Henry Kissinger and Cyrus Vance of the Ford and Carter administrations, former Managing Director at Lehman Brothers, and is a member of the Council on Foreign Relations. 

In his article written in 1998, he stated that, “over time the United States set up crucial central institutions – the Securities and Exchange Commission (1933), the Federal Deposit Insurance Corporation (1934) and, most important, the Federal Reserve (1913). In so doing, America became a managed national economy. These organisations were created to make capitalism work, to prevent destructive business cycles and to moderate the harsh, invisible hand of Adam Smith.” He stated that, “this is what now must occur on a global scale. The world needs an institution that has a hand on the economic rudder when the seas become stormy. It needs a global central bank.” (We do need honest money, but this won’t get it.)

Interstingly, Garten states that, “one thing that would not be acceptable would be for the bank to be at the mercy of short-term-oriented legislatures.” In essence, it is not to be accountable to the people of the world. …

In September of 2008, Jeffrey Garten wrote an article for the Financial Times in which he stated that, “Even if the US’s massive financial rescue operation succeeds, it should be followed by something even more far-reaching – the establishment of a Global Monetary Authority to oversee markets that have become borderless.” In late October of 2008, Garten wrote an article for Newsweek in which he stated that, “leaders should begin laying the groundwork for establishing a global central bank.” …

In January of 2009, … Dr. William Overholt, senior research fellow at Harvard’s Kennedy School, formerly with the Rand Institute, gave a speech in Dubai in which he said that, “To avoid another crisis, we need an ability to manage global liquidity. Theoretically that could be achieved through some kind of global central bank, or through the creation of a global currency, or through global acceptance of a set of rules with sanctions and a dispute settlement mechanism.”

A “New World Order” in Banking

In June of 2008, … Timothy Geithner, as (then) head of the New York Federal Reserve, wrote an article for the Financial Times following his attendance at the 2008 Bilderberg conference, in which he said that, “banks and investment banks whose health is crucial to the global financial system should operate under a unified regulatory framework,” and that, “the US Federal Reserve should play a ‘central role’ in the new regulatory framework, working closely with supervisors in the US and around the world.”

In November of 2008, The National, a prominent United Arab Emirates newspaper, reported (that) Baron David de Rothschild …, “shares most people’s view that there is a new world order. In his opinion, banks will deleverage and there will be a new form of global governance.” In February of 2009, the Times Online reported that a “new world order in banking [is] necessary,” and that, “it is increasingly evident that the world needs a new banking system and that it should not bear much resemblance to the one that has failed so spectacularly.”

But of course, the elites that are shaping this new banking system are the champions of the previous banking system. The solutions that will follow are simply the extensions of the current system, only sped up through the necessity posed by the current crisis.

An Emerging Global Government

more to come…

(Elsewhere…)

Chinese yuan set to replace dollar

01/03/2009 17:55
by Maurizio d’Orlando

Beijing has launched the experiment of using the yuan as a reserve currency in relations with 8 countries.  … In practice, China is trying to make its currency convertible and give it a role as a reserve currency. The first experiment is limited to transactions between Hong Kong and the neighboring provinces.  … If, after a trial period, China makes its currency convertible, the consequence is that importing countries must have reserves of yuan renminbi. To get them, central banks around the world will have to divest themselves of U.S. assets and Treasury bonds.

GCC Wraps up Summit with Approval of Monetary Union
The 29th annual summit of Gulf Cooperation Council (GCC) wrapped up in the Omani capital of Muscat late Tuesday, with six Gulf leaders approving the monetary union accord.
(Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates[source])

MUSCAT: Oil-rich Gulf monarchies agreed on Tuesday on the final draft of an accord on a monetary union which they intend to launch next year, an official statement said.
SOURCE: http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=98744

Five members of the six-nation Gulf Cooperation Council have “adopted the monetary union accord, which includes the legal and organizational framework,” said the statement issued at the end of the annual GCC leaders summit in Muscat. “It also…

Advertisements

Your Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s