Days before the second G20 summit the debate is mostly centered on two sides.
In the one hand the pace and mechanisms on how a currency dependent on one particular economy (the US dollar) will gradually give way to a global reserve currency. As Geithner told today (*), it is an evolutionary process. But, US authorities should behave accordingly since now on. Recent actions makes more difficult for US economy and for Americans that evolution will happen seamlessly. To print massive amounts of US dollars will produce nothing but to bring more poverty to that economy either through deeper hyperinflationary crisis or through tremedous rise of taxes, or both. On the other hand on the role of that super-sovereignity central bank (currently based on the IMF). That is politic decission, but US authorities have to take into account that governments around the world have to trust on that institution if we want to delegate on it some parts of our monetary policies. Only a institution that reflects the real economic world in its politic structure can be trusted. Yet IMF lives in 1945. Peace and best wishes. Xi (*) Geithner Remarks on IMF Roil Foreign-Exchange Market http://www.bloomberg.com/apps/news?pid=20601087&sid=aVevdIrBPtUE&refer=home --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
