Monday, March 16, 2009

Russia Proposes Creation of Global Super-Reserve Currency

Curt Here....

The news gets crazier by the day. Now we have the Country of Russia suggesting that the G20, at the April 2nd summit in London should start the process of establishing the creation of a "super reserve currency." According to the Russian plan this global super-reserve currency will be issued by the major international financial institutions. The hope is this new currency will provide stability and control to the current chaotic financial situation.

They are suggesting that we should disregard "standard approaches" of doing business and we should act globally together under one financial system, with one set of rules. The Russians take it one step further and say they believe at the coming summit, the G20 nations should seek and achieve accord on the main parameters of this new world financial system.

This is all happening very fast, and if major decisions are made at the G20 summit towards a global new financial order, we may have the framework in place towards the implementation of the mark of the beast. This is a pretty scary thought if you ask me and to be frank I am having a hard time believing what I am reading these days. But God's Word is true and I know that His coming will be fulfilled exactly as it was written. Still, I stand in awe.

Stay Tuned



Russia proposes creation of global super-reserve currency

MOSCOW, March 16 (Itar-Tass) -- Russia suggests the G20 summit in London in April should start establishing a system of managing the process of globalization and consider the possibility of creating a supra-national reserve currency or a “super-reserve currency.” The Russian Federation’s proposals for ways out of the ongoing financial and economic crisis and for a post-crisis order of the world financial system have been published on the Kremlin’s website. The proposals have been dispatched to the leadership of the G20 countries, the CIS and international organizations.

“The current global economic crisis points to the need for discarding standard approaches and requires the adoption of collective decisions, agreed at the international level and geared to creating a system of globalization process management,” the document says. Russia suggests “acting with the maximum resolution in order to restore sustainable economic development and also confidence and stability in the financial markets.”

The Russian side believes the summit should seek and achieve accord on the main parameters of a new world financial system. It suggests calling an international conference that would produce the basic parameters of a world financial architecture and adopt international conventions regarding a new financial world order.

Russia believes that the “obsolete mono-polar structure of the world economy should give way to a system based on cooperation by several major centers.”

In the sphere of control and supervision Russia suggests drafting and adopting an international agreement setting global standards of control and supervision in the financial sector – a Standard Universal Regulatory Framework (SURF).

Russia calls for reforming the international currency and financial system with the aim to strengthen its stability and control. In that connection the Russian side suggests discussing the possibility of expanding the list of currencies to be used as reserve ones, on the basis of the adoption of agreed measures to stimulate the development of major regional financial centers, and also “the creation of a supra-national reserve currency that will be issued by international financial institutions.”

“It looks expedient to reconsider the role of the IMF in that process and also to determine the possibility and need for taking measures that would allow for the SDRs (Special Drawing Rights) to become a super-reserve currency recognized by the world community,” the document says.

Also, Russia in the medium and long-term is for a revision of the role and mandate of the IMF in order to adjust both to a new structure of the world currency and financial system, whose modification is to be completed as a result of the current crisis.

For the purpose of overcoming the current crisis it will be necessary to considerably increase the resources of the IMF.

“The decisions we shall make at the London summit must be not only adequate to the current situation, but also meet the requirements of a new, post-crisis world,” the document says.


Anonymous said...

Hmm, and Russia is proposing this... I don't want to make too much of it, but years ago somebody commented on Gorbochav's birthmark, perhaps being a sign or a warning to make one think and consider, perhaps to remind on of the mark of the beast. We all know Gorbochav is very big in the NA business.

the70thweek said...

U.N. panel says world should ditch dollar

A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.

Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.

Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.

"It is a good moment to move to a shared reserve currency," he said.

Central banks hold their reserves in a variety of currencies and gold, but the dollar has dominated as the most convincing store of value -- though its rate has wavered in recent years as the United States ran up huge twin budget and external deficits.

Some analysts said news of the U.N. panel's recommendation extended dollar losses because it fed into concerns about the future of the greenback as the main global reserve currency, raising the chances of central bank sales of dollar holdings.

"Speculation that major central banks would begin rebalancing their FX reserves has risen since the intensification of the dollar's slide between 2002 and mid-2008," CMC Markets said in a note.

Russia is also planning to propose the creation of a new reserve currency, to be issued by international financial institutions, at the April G20 meeting, according to the text of its proposals published on Monday.

It has significantly reduced the dollar's share in its own reserves in recent years.

For more go here...

Anonymous said...

And now China is calling for a global currency...

the70thweek said...

Thanks for the heads up anonymous. Life has been very busy for me lately, so it is a huge blessing to have other watchers out there.

See my latest blog entry for my comments on this.