Yesterday, I had a long chat with some people. It seems that in the very short term, the standard currency will not be changed but ...
International institutions will be, in order to make them in line with the real circumstances in 2008, that is why Europe is repeating to give more power to the group of emerging economies. About monetary policy, an interesting proposal that some people in China are offering (it is not the formal proposal of the Chinese government, at least not yet) is to continue the role of the US dollar as the standard tool. But the Fed would not be an American institution, it would be an international institution related to the IMF, once the IMF would have a democratic structure with broader power over global banking and financial system. It would help to prevent a collapse of the US dollar because all major powers would back that currency and, at the same time, it would not make that the US domestic issues have influence on the rest of the global economy. Also, the shock for US people would not be so hard as they would continue to use the US dollar as they do now. Somehow, it would be a currency tied to major currencies such as Euro, Yen, Yuan, Ruble, etc. therefore, in fact, it would be a basket of currencies. The change is not too difficult formally as the Fed is a private institution. The IMF would buy all shares of the Fed. Anyway, it is just a proposal under further elaboration in Beijing and I guess that in other places too. I do not know whether there are other proposal under elaboration, I just know this one. Peace and best wishes. Xi On Oct 16, 7:31 am, antidefm <[EMAIL PROTECTED]> wrote: > I am not a economic or financial guy, but I know this is an exciting > time in the international financial world. It seems something will > change after this crisis is over. "New currency standard" or "new > financial order", that sounds like U.S. will be the loser in the > game. > > It remains to see how U.S. will defend its "dollar hegemony", how EU > will play with its Euro, and Chinese plays with its Yuan or RMB. > > The political implication is far reaching if U.S. lost its "dollar > hegemony." I can't wait to see that to happen. > > On Oct 15, 4:23 pm, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote: > > > > > For further information see this thread: > > > China wants a new currency > > standard.http://groups.google.com/group/world-thread/browse_thread/thread/487d... > > > My comment: Things are moving ahead. We will hear a lot about banking > > and financial issues, nothing about monetary issues. The monetary > > issues are the best hidden secrets in the world as trillions are to > > make or to lose. But things are moving ahead. > > > EU Presses for Revamp of Bretton Woods Global Financial > > Systemhttp://www.bloomberg.com/apps/news?pid=20601087&sid=aJa1elVRv1tY&refe... > > > Oct. 15 (Bloomberg) -- European Union leaders pressed for an overhaul > > of the global financial system to prevent a repeat of the credit > > crunch that sparked the biggest stock-market selloff since the Great > > Depression. > > > EU leaders called for a global summit as soon as next month to rewrite > > the 1944 Bretton Woods accord that paved the way for Europe's post- > > World War II reconstruction and set up the institutions that oversee > > the world economy today. > > > ``We had the emerging market crisis, we had the Internet bubble, now > > we have this massive crisis,'' French President Nicolas Sarkozy told > > reporters after chairing the first session of an EU summit tonight in > > Brussels. Europe is united in calling for the ``re-foundation of the > > international financial system.'' > > > While stressing a global approach, European governments are split over > > how to go about it, with leading countries -- including Britain -- > > traditionally opposed to handing over business regulation to outside > > authorities. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
