Article

2009-03-24 International-UN-NGOs

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by Steve White 2009-03-24 00:00|| || Front Page|| [4 views ] Top

#1 The key change which I saw floated last week is for SDRs to be issued without being backed by reserves of a real currency. Which means the World Bank would get its own money printing press.

And as I pointed out yesterday, A currency not backed by a national government which can't be used to purchase goods and services in that country (or countries) is a recipe for disaster.

Posted by phil_b 2009-03-24 01:30|| 2009-03-24 01:30|| Front Page Top

#2 Today, the value of SDRs is based on a basket of four currencies -- the US dollar, yen, euro and sterling

Chuck in gold and I'll go along with that, but only for international trade.

Posted by tipper 2009-03-24 01:48|| 2009-03-24 01:48|| Front Page Top

#3 Another proposal I've seen is a new currency backed by commodities (oil, gold, iron ore etc).

The problem is you would have to trust individual countries have the commodity stocks they say they have and would hand them over if required.

You would have a new currency, lets call it the Globo, used for international trade. China accumulates a surplus of Globos and say Brazil and Nigeria accumulate deficits of Globos.

To rectify this China says to Brazil send us x million tons of iron ore and to Nigeria send us y million barrels of oil.

Now bear in mind the reason you adopted the Globo in the first place is because you didn't trust the US to maintain the value of its currency, but now you are not only reliant on Nigeria and Brazil to send you what they own you, but even if they have the material to send you in the first place.

Posted by phil_b 2009-03-24 02:23|| 2009-03-24 02:23|| Front Page Top

#4 Dr White has it right. This is currently sound and fury. But ultimately we could allow the Chinese to do to us what the Brits allowed us to do to them.

They're doing this on the backs of the Chinese people. Since China is growing quickly from a small base, the Chinese people are willing to let the government hog the trough. They don't know what they're giving up. But things could change and the Chinese don't have a stable constitution.

Posted by Nimble Spemble 2009-03-24 07:24|| 2009-03-24 07:24|| Front Page Top

23:24 trailing wife
23:17 trailing wife
23:13 Frank G
23:08 rammer
23:01 CrazyFool
22:48 Scooter McGruder
22:36 Cornsilk Blondie
22:33 Seafarious
22:21 flash91
22:19 DMFD
22:10 Alaska Paul
22:04 Ming the Merciless
22:02 whitecollar redneck
22:01 Alaska Paul
21:44 Glenmore
21:35 Pappy
21:24 Squinty Shaish6274
21:24 Frank G
21:19 trailing wife
21:17 Anguper Hupomosing9418
21:15 Pappy
21:03 Squinty Shaish6274
20:45 SteveS
20:39 Rambler in Virginia