Shocking New IMF Report: The U.S. Dollar Needs To Be Replaced As The World Reserve Currency

The Economic Collapse ^ | 02/11/2011 | Michael Snyder

[screaminsunshine]

I am for closing our borders to all imports and exports and rebuilding the USA no matter what it costs.
We should isolate ourselves from all things Global before it is too late.

[jpl]

I agree. And the vile Ben Bernanke is the first person who ought to be hanged.

[OneWingedShark]

If by ‘overhaul’ you mean burn it to the ground, then yes.

[wheresmyusa]

Global currency is where it’s at for these guys. They already have a hard currency named, that is backed by SDR’s. They’re calling it a “bancor”. I have this paper on my harddisk, i’ll have to upload it somewhere to share but i’m on my way out the door for work.

__________________________________________________________

The INTERNATIONAL MONETARY FUND

Reserve Accumulation and International Monetary Stability

Prepared by the Strategy, Policy and Review Department

In collaboration with the Finance, Legal, Monetary and Capital Markets, Research and Statistics Departments, and consultation with the Area Departments

Approved by Reza Moghadam

April 13, 2010

A sui generis Global Currency

48. From SDR to bancor. A limitation of the SDR as discussed previously is that it is not a currency. Both the SDR and SDR-denominated instruments need to be converted
eventually to a national currency for most payments or interventions in foreign exchange markets, which adds to cumbersome use in transactions. And though an SDR-based system would move away from a dominant national currency, the SDR’s value remains heavily linked to the conditions and performance of the major component countries. A more ambitious reform option would be to build on the previous ideas and develop, over time, a global currency. Called, for example, bancor in honor of Keynes, such a currency could be used as a medium of exchange—an “outside money” in contrast to the SDR which remains an “inside money”.

49. Common versus parallel currency. One option is for bancor to be adopted by fiat as a common currency (like the euro was), an approach that would result immediately in
widespread use and eliminate exchange rate volatility among adopters (comparable, for instance, to Cooper 1984, 2006 and the Economist, 1988). A somewhat less ambitious (and
more realistic) option would be for bancor to circulate alongside national currencies, though it would need to be adopted by fiat by at least some (not necessarily systemic) countries in order for an exchange market to develop.

50. Caveats and pre-conditions. Absent significant monetary instability or an injunction for use of bancor for the making of an important set of payments (e.g. payment of taxes), surmounting the barriers to wide acceptance would be a key and perhaps prohibitive challenge. Moreover, an independent monetary policy constitutes an important instrument for adjustment when economies do not form an optimal currency area with others. Adoption of a
common currency could limit the scope for adjustment to shocks, and developing alternative adjustment mechanisms would be a pre-condition for adoption (e.g. greater flexibility of labor markets) as would mechanisms for fiscal discipline and cooperation. Since a system
with a few currencies competing alongside one another has built in safety valves (in terms of checks on inflation, for instance; see Rogoff, 2001), it would be essential to construct governance arrangements that ensure accountability of the bancor-issuing institution while
assuring its independence. These arrangements would also need to be sufficiently flexible and robust to accommodate differences among adopting members. These considerations and costs—important as they are—would need to be weighed against the benefits of using a currency like bancor.

51. Why bancor? A global currency, bancor, issued by a global central bank (see Supplement 1, section V) would be designed as a stable store of value that is not tied
exclusively to the conditions of any particular economy. As trade and finance continue to grow rapidly and global integration increases, the importance of this broader perspective is expected to continue growing. Nominal anchor. As a stable store of value, bancor could serve as a global nominal anchor. The variability of traded goods prices that is currently related to exchange
rate volatility would be reduced. By not being tied as tightly as the SDR to the conditions of a particular economy or a group of economies, bancor could provide
greater monetary stability, especially since key central banks retain monetary control under an SDR-based system and their respective economies and currencies would be
expected to face episodic stresses and volatility (such as higher inflation or deflation).

Risk-free asset. Once liquid markets for bancor-denominated instruments exist and bancor-denominated transactions are at a par with or exceed transactions in other
currencies (i.e., in a bancor-based system), bancor-denominated debt of the sovereign with the highest credit rating could serve as the global risk-free asset, off of which all risky assets are priced. The risk-free asset would be less tied to the credit ratings and
inflation outlook of the largest economies, and would therefore be subject to less volatility and dependence on their specific circumstances than the SDR-based system. Lender of last resort. The global central bank could serve as a lender of last resort, providing needed systemic liquidity in the event of adverse shocks and more
automatically than at present. Such liquidity was provided in the most recent crisis mainly by the U.S. Federal Reserve, which however may not always provide such
liquidity.

Adjustment. If bancor were to circulate as a common currency, then current account imbalances among the adopting economies would reflect structural rather than
monetary considerations. Instead, if bancor were to circulate as a parallel currency but in a dominant role in place of the U.S. dollar, then as in the SDR-based system
described above, current account imbalances that reflect today’s situation—namely, surplus countries pegging to bancor (the dominant currency in place of the U.S.
dollar) with deficit countries floating against it—would adjust more symmetrically, and perhaps more automatically, than the current or SDR-based systems since the deficit currencies would be expected to depreciate against bancor.

[Quix]

He’s evidently got lots of blood on his hands . . . yet, he’s probably a relatively low level puppet.

[Quix]

Christ will present a way out after He mops up at Armageddon.

Stay tuned.

[Quix]

Folks who aren’t used to reading

Daniel,
Ezekiel
Revelation
The shorter prophets,
Isaiah,
Psalms

would do well to bone up . . . fast.

[Quix]

These folks have been planning this a very long time:

http://www.freerepublic.com/focus/news/2475963/posts?page=60#60

http://www.freerepublic.com/focus/f-religion/2130557/posts?page=129#129

AMAZING DISCOVERIES DR VEITH RE ILLUMINATI ETC SECRET SOCIETIES:

http://amazingdiscoveries.tv/media/123/211-232K/

http://www.freerepublic.com/focus/chat/2624713/posts?page=153#153

[Wayne07]

I’ve got matches if you have lighter fluid.

[dynachrome]

One World, One Folk, One leader

And, of course, One Currency.

[FromLori]

China wants in

In China, Tentative Steps Toward Global Currency

http://www.cnbc.com/id/41523008

[GlockThe Vote]

Bump.

[MichaelCorleone]

You've probably heard that these one-worlders often complain that America keeps getting in the way of their diabolical plans. And the problem with America is Americans. Whatever we do, let's keep skrooin up their plans.

[wheresmyusa]

Uploaded here:

http://www.mediafire.com/?fsp45ffufra5am7

Also, the Goldman Sachs Economics Paper 196: Global Reserve Currencies and the SDR....A good read for those interested.

http://www.mediafire.com/?bb53vmgcfdvsk70

And thank you very much for the links in your post Quix!

[Quix]

THANKS THANKS.

[djf]

$300/barrel oil, gas at the pump 12-15 per gallon.

[LibWhacker]

I say we return to the day when the U.S. dollar was backed by gold and let the world go stew in its basket of currencies. It only takes one bad apple to spoil the bushel and these crazy bastards are proposing to jump into the pot with a whole bunch of rotten fruit.

I hope that basket includes a nice big healthy dollop of North Korean ronries, Zimbabwean dollars, and other laughable world currencies, which, of course, they'll eventually have to allow or be accused of being racists.

So they'll allow it. Give them time.

Yes, let's go back to the gold-backed dollar and let the world market decide for itself which currency to trade in.

A nice twist would be not to permit U.S. dollars, or gold, to leave the country. Then every astute world businessman who craves the security of the U.S. dollar would be forced to buy, sell, invest, trade, etc., right here in America, and never take a penny of it back home. They can take all the Cadillacs they want back to Saudi Arabia. And we'll slap them on the back and thank them for it. But the dollars stay here. Or, if they prefer, they can do business abroad in a basket of Zimbabwean dollars.

[BruceS]

I think this is a great idea! The next time the IMF needs more money, let’s print some SDRs and give them to them. If they don’t think the dollar is good enough, let them eat SDRs.

[unixfox]

Just wait until the dollar is no longer the default oil-purchasing currency.

Exactly. When those ships arrive with millions of barrels of oil, they will start demanding payment in gold. Not our worthless paper money.

And I wouldn't blame them.

[John.Galt2012]

Virtual Currency

That means no more private debt, purchases or exchanges...everything can be "monitored" at that point.