US President Barack Obama has publicly opposed Russia’s initiative for the first time during his presidency. Obama rejected Russia’s idea to replace the dollar with a new international currency, which immediately led to the growth of the US dollar on the international financial market.
Russia put forward a suggestion to the IMF to look into the opportunity to create a supernational reserve currency which would be issued by international financial institutions. Russia also suggested a diversification of the currency structure of reserves, operations of national banks and international financial organizations.
Many countries, including Iran, China, Kazakhstan and several Arab states, supported Russia’s idea to replace the dollar with a new currency. The governments of those countries believe that the doubtful dollar settlement in the oil industry will soon become a matter of the past.
Now what's happening with the rouble and does Russia mean the Euro or the world currency currently being mooted?
There was some interest in moving to the EURO a while ago but this was abandoned when the ECB started lowering rates, and buried entirely when recently it was announced that more currency would be printed.
ReplyDeleteThe petro economies [and exporters] need a more stable, non-inflationary currency now that the USD is being debased. They may just start their own but with most of the rest of the world in recession they may have some difficulty floating it right now.
Its about time policy makers started to face the entropic fallacy that surrounds the petro-economic cycle before global depression sets in.
A return to the gold standard might have been a good idea if Gordon Broon hadn't sold 400 tonnes of the stuff when its price was low.
ReplyDeleteI agree with fgeegf,except for his last line which was OTT.
ReplyDeletefgeef's comment would make a brilliant tattoo.
ReplyDeleteThere will be no currency until this lot is sorted.
ReplyDeleteThe US oligarchs who are ruining the economy, and who are Geithners masters, will resist.
Here
Here
Here
That's why the US dare not nationalise the banks. And the taxpayer can't afford much more.
Greenspan was instrumental in campaigning to avoid the regulation of this crap.
Same old same old.
Uh-oh, you've pissed him off now, Galli. He thinks you were implying that he's fat!
ReplyDeleteThis spammer - I'm a great believer in people getting theirs eventually and one day I might be bothered tracking one of them down.
ReplyDeleteWolfie - sets in late 2009, you mean.
ReplyDeleteGallimaufry - exactly.
Sonus - I've checked those. Yes.
Uber - thanks.
Sorry I have been a little bit slow over the last few days xx
ReplyDelete