tagged w/ Global Currency
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This will scare you! It seems the conspiracy theorists were conspiracy realists after all.
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October 23, 2009 ·
Billionaire globalist George Soros told the Financial Times during an interview that China will supplant the United States as the leader of the new world order and that America should not resist the country’s decline as the dollar weakens, living standards drop, and a new global currency is introduced.
Asked what Obama should discuss when he visits China next month, Soros stated, “This would be the time because I think you really need to bring China into the creation of a new world order, financial world order,” adding that China was a reluctant member of the IMF who didn’t make enough of a contribution.
“I think you need a new world order that China has to be part of the process of creating it and they have to buy in, they have to own it in the same way as the United States owns…the current order,” said Soros, adding that the G20 was a move in this direction.
Soros said that there was a flight from currencies across the board, and that this is why the price of commodities, notably gold and oil, were generally rising. He also stated that an orderly decline of the dollar was “desirable” and that the entire system needed to be reconstituted towards a global currency.
“You need a new currency system and actually the Special Drawing Rights do give you the makings of a system and I think it’s ill-considered on the part of the United States to resist the wider use of Special Drawing Rights, they could be very useful now when you have a global shortfall of demand, you could actually internationally create currency through Special Drawing Rights,” said Soros, explaining that this was already in process after the IMF injected an allocation of Special Drawing Rights (SDRs) equivalent to $250 billion into the global economy.
Soros also stated that richer countries were already transferring wealth to poorer countries via SDR’s, with the IMF paying for the half per cent transaction cost.
Soros said the world would have to go through a “painful adjustment” following the decline of the dollar and the introduction of a global currency. Reading between the lines, he essentially threatened to kill the dollar completely if the United States did not get on board with the global currency.
Soros predicted that China would become the new engine of the global economy, replacing the U.S., and that this would slow economic growth and reduce living standards. Soros characterized the United States as a drag on the global economy because of the declining dollar.October 23, 2009 ·
Billionaire globalist George Soros told the Financial Times... more
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China's State Council, or Cabinet, announced a pilot program to allow exporters and importers in five cities to settle cross-border trade deals in Renminbi, or yuan.
The cities are Shanghai, Guangzhou, Shenzhen, Zhuhai and Dongguan. The latter four are all in south China's Guangdong Province.
Attendees at a State Council executive meeting Wednesday, presided over by Premier Wen Jiabao, agreed settling cross-border trade deals in yuan was important for promoting economic and trade ties between China and neighboring countries and regions.
Information about when and how the trial program will start was not available.
The State Council urged departments concerned to issue relative rules as soon as pChina's State Council, or Cabinet, announced a pilot program to allow exporters... more
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Beijing central bank governor Zhou Xiaochuan had suggested that a new reserve currency be adopted — one that could replace the U.S. dollar as the global currency predominantly used in trade between nations. Read why it could be a possibility.Beijing central bank governor Zhou Xiaochuan had suggested that a new reserve currency... more
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The Chinese proposal for a single global currency was part of Beijing’s effort to take a more prominent place among world powers at the recent G20 meeting. And they have legitimate reason to float the idea of replacing the dollar as the “reserve” currency — the medium of exchange used for the majority of financial transactions around the world.
As the holder of some $2 trillion in dollar-denominated savings the Chinese government has reason to be concerned about the long-term strength of the dollar. One time-honored method of reducing large government debt is to gradually inflate the currency to reduce the real value of that debt. That would also devalue that big pile of Chinese savings.
The dollar’s role as a reserve currency also gives the United States a dominant role in the global economy. That also means other countries are subject to U.S. fiscal and monetary policies over which they have no control.
So it’s no surprise that China would like to see another entity — it suggests the International Monetary Fund would be a good choice — issue a single global currency that would be used by all countries in place of the dollar. There would be many advantages to this. But it has about as much chance of happening as the adoption of Esperanto as a common global language.
A nation’s currency serves several purposes, one of which is a global proxy for the depth, strength and productivity of its economy and the stability of its political system. For all of the problems facing the United States, investors around the world believe the dollar is the safest place to park their wealth. That’s why, for the moment, interest rates on dollar-denominated debt like U.S. Treasuries are so low.
MSNBC 4/06 17:40 PM ETThe Chinese proposal for a single global currency was part of Beijing’s effort... more
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Once more We, The United States, must boss around the world and police it with military force.
Scare tactics are the bread and butter of this country.Once more We, The United States, must boss around the world and police it with... more
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