U.N. Recommendation On World Economy: Replace The Dollar

(CBS / U.S. Treasury)

A week before President Barack Obama joins the largest developing and industrialized countries' finance ministers and heads of state in London, the U.N. has issued its economic recommendations.

The bottom line: A drastic overhaul will be necessary to pull the world out of the recession, according to the Commission of Experts on Reforms of International Finance and Economic Structures, chaired by Joseph Stiglitz, winner of the 2001 Nobel Prize for Economics. But that's easier said than done.

At the upcoming summit, the Obama administration is expected to urge more fiscal stimulus programs; China and the U.N. are urging a move away from the dollar; and the European community wants more financial regulation. Even within the European Union, major differences abound.

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Read the recommendations of the U.N. economic reform panel chaired by Jospeh Stiglitz.>

Learn more about the commission.

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Last week, the current EU President, Czech Prime Minister Mirek Topolanek called the Obama administration's programs the "road to hell." And, the U.N.-China proposal to replace the U.S. dollar as the international reserve currency may be sidelined at the summit, according to Canadian Finance Minister Jim Flaherty.

At the U.N. this week, Stiglitz was clear that the U.N. panel believes that regulation must be comprehensive.

"You actually have to do something," he said.

Asked by CBS News about a preferred and realistic timetable for phasing out the dollar, he answered, "My preferred timetable would be that it could begin to be phased in next year. We have a framework which is the SDR, right now, [the currency that the International Monetary Fund uses] and that could be done right away so in that sense we even have an institutional framework." That, in essence, he said, was the China proposal.

Stiglitz added, "It could be done within a year. Realistically, I don't think it will happen that fast. Some of my more cynical friends think that it is only after the economic slowdown moves into a malaise of several years that we will figure out that we have to do something more fundamental – and that would mean after 2013 that the world will be more ready for this."

But, Stiglitz noted, a move away from the dollar does not hurt the U.S. as the premier world economy.

"In fact, I think it is advantageous to the U.S.," he said, "because I think we have been hurt by the trade deficits, which are the corresponding part of the demand for our Treasury bills that are put into reserves."

So, with the world's major economists and world leaders descending on London next week, the G20 is going to get a lot of attention but will it resolve the international crisis and avoid inflation? We'll just have to wait and see.

[toolmangler-2009]

Posted by MorrisonBonpasse at 1:55 PM : Mar 28, 2009



You will get your beloved single currency for the world, shortly after that you will start getting your one world government, Not long after that you can watch it all fall apart. The reason is in front of your face but you cannot see it

[invyzabul]

I was hoping SOMEONE would make this type of comment. You are absolutely right. I do not understand why people can't see whats going on.....or maybe they do. The time is so very close.

[lucytomato]

Absolutely the proposal of Global Central Bank is a good idea .None of us want our jobs steam again by only a flew people in Wall Street

[MorrisonBonpasse]

The world should be grateful to China and the U.N. Panel for leading the way to a Single Global Currency, which necessariy will be managed by a Global Central Bank
within a Global Monetary Union. Their interim proposal for a new "reserve currency" is only a first step toward long term global monetary stability.
As China requests, this next global currency will not be the responsibility of just one country. What is needed now is international recognition of those goals, and research and planning to achieve them.
The success of the euro shows that monetary union is the best way to ensure monetary stability. The primary problem with the euro and currencies of other monetary unions is that they still must co-exist within the international multi-currency system itself where the value of those common currencies must still fluctuate in value against each other.
If 16 countries can use the same currency, why not 192?
In addition to eliminating currency risk, the use of a Single Global Currency would eliminate the current foreign exchange trading expense of $400 billion annually, eliminate current account imbalances,
eliminate the need for foreign exchange reserves (now totalling more than $3 trillion); and bring other benefits worth trillions.
The Single Global Currency Assn. (www.singleglobalcurrency.org)
promotes the implementation of a Single Global Currency by 2024, the 80th anniversary of the 1944 conference. That?s only 15 years away.
The world is moving toward a Single Global Currency through the creation, expansion and merger of regional monetary unions. Another route is through international
monetary conferences proposals and agreements, such as were seen at Bretton Woods in 1944.
The challenge now is to reach that goal planfully, as soon as possible with as little cost and as few crises
as possible.
See the book, "The Single Global Currency - Common Cents for the World."
Morrison Bonpasse
Single Global Currency Assn.
Newcastle, Maine, United States

[cbsantispin]

U.N. Recommendation On World Economy: Replace The Dollar

Dollar Recommendation On U.N. Recommendation: Replace The U.N.

[mje222]

ms.P stoping mr.B and mr.G I dont think so they are all out to bring us down, for the better of there own greed!

[bumpedoff1]

How about obama bankrupting America.

[justlookinitover]

Does anybody know what a president has to do to get an economist to recomend something?

I was just wondering....

[PacificGatePost]

China is simply flexing its economic muscle before the G20 meeting.

http://pacificgatepost.blogspot.com/2009/03/chinas-weak-gambit-on-currency-shift.html

The U.S. Dollar is not about to be replaced, regardless what China's wishes might be.

[omega39-2009]

Posted by tmittelstaed at 1:12 AM

If there is one potential bright spot it is that we won't be able to use the bully pulpit of reserve currency to get the rest of the world to finance our imperialistic aspirations

[Samuel-HiLL]

At the U.N. this week, Stiglitz was clear that the U.N. panel believes that regulation must be comprehensive. ?You actually have to do something,? he said.

I guess that counts the U.N. out.