--- In FairfieldLife@yahoogroups.com, "Nelson" <nelsonriddle2...@...> wrote: > > --- In FairfieldLife@yahoogroups.com, "do.rflex" <do.rflex@> wrote: > > > > > > > > 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. > > > > GOOD TIME > > > > Persaud said that the United States was concerned that holding the reserve > > currency made it impossible to run policy, while the rest of world was also > > unhappy with the generally declining dollar. > > > > "There is a moment that can be grasped for change," he said. > > > > "Today the Americans complain that when the world wants to save, it means a > > deficit. A shared (reserve) would reduce the possibility of global > > imbalances." > > > > 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. > > > > 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. > > > > The other reason, he said, was the success of the euro, which incorporated > > a number of currencies but roughly speaking held on to the stability of the > > old German deutschemark compared with, say, the Greek drachma. > > > > 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. > > > > http://www.reuters.com/article/newsOne/idUSTRE52H2CY20090318?sp=true > > > Another page in the effort to create problems here as if we don't do pretty > well on our own. What BS.
Factual reality is a problem for you, "Nelson?"
