Bartering systems look like they could come to the rescue of the United States as it did for Argenina few years ago during their currency crisis and collapse. Fortunately, the economy has nowhere to fall further as the basis of barter. God thank you, we are at the point of bartering for U.S. companies over the last 10 years.
If countries unpeg the U.S. dollar, we are in a seriously bumpy ride, and probably scenes that were only seen in pre-Nazi Germany’s Weimar Republic of hyper inflation where people went in to a store with a wheelbarrow full of money and came out with a loaf of bread.
A currency crisis has been developing for some time and had to happen sooner or later. The Fed should have taken better care of things, but all indicators show that this was the plan when the Federal Reserve was established in the early part of the 20th century.
These kinds of things really should have been brought more to the audience there for many years. Unfortunately, it is the man in the street that will suffer again, and a solution will be offered by government that will further encroach on the liberties and freedoms of people worldwide.
United Nations wants new global reserve currency
Speaking at an annual meeting between the International Monterary Fund and the World Bank, United Nations Undersecretary-General for Economic and Social Affairs, Sha Zukang, on Tuesday called for a new reserve currency.
On Tuesday, the United Nations called for a new global reserve currency to offset the dominance of a weak United States Dollar, according to AFP. Zukang elaborated that the dollar supremacy has allowed the US to have a large trade deficit.
Speaking in Istanbul, Turkey at the annual meeting between the IMF and the World Bank Zukang said, “Important progress in managing imbalances can be made by reducing the reserve currency country’s ‘privilege’ to run external deficits in order to provide international liquidity.”
Zukang further went on to discuss Special Drawing Rights, which is a “truly global reserve currency.” SDRs are mostly used in IMF transactions are made up of four currencies: Euro, Yen, Pound and the Dollar.
Original full article at Digital Journal
As we can see this idea of a new reserve currency is not new, as China has been calling for a new currency for quite some time.
China backs talks on dollar as reserve -Russian source
By Gleb Bryanski
MOSCOW, March 19 (Reuters) – China and other emerging nations back Russia’s call for a discussion on how to replace the dollar as the world’s primary reserve currency, a senior Russian government source said on Thursday. Russia has proposed the creation of a new reserve currency, to be issued by international financial institutions, among other measures in the text of its proposals to the April G20 summit published last Monday.
Calls for a rethink of the dollar’s status as world’s sole benchmark currency come amid concerns about its long-term value as the U.S. Federal Reserve moved to pump more than a trillion dollars of new cash into the ailing economy late Wednesday.
Russia met representatives of China, India and Brazil ahead of the G20 finance ministers meeting last week, as the big emerging powers seek to up their influence on decisionmaking globally. Their first ever joint communique did not mention a new currency but the source said the issue was discussed.
Full original article hosted at Reuters newspaper.
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