Ditch the Buck! Dollar demise 'a matter of months'

[CantYouSee]

A report by the United Nations says the American dollar should be ditched as the main global reserve currency. It also found that developing countries have been hit by the dollar's loss of value in recent years. A number of states, including Russia and China, have repeatedly called for a new reserve currency system. The UN has now suggested using a basket of currencies for this purpose. How would this effect the Us dominance on the Worlds economic ?

Please watch this Video for more Information on this subject.

 

[bestrfcplayer]

wut

btw, weclome to OT CantYouSee

 

[Ahovking]

Wow that could hurt the USA a lot and i mean a lot

 

[Arwon]

"Report by the United Nations"? Which agency? Where is the report?

 

[amadeus]

Here's a quick blurb from the AP:

UNITED NATIONS — The U.N.'s top economic officials urge less global dependence on the U.S. dollar in a report that calls for broad changes to the world's financial policies and markets.

The report criticizes use of the dollar as the global reserve currency. It says the dollar ties the global economy to a U.S. monetary policy that is "based only on the state of the United States economy."

Instead, senior U.N. economic officials recommend greater reliance on an alternative to the U.S. dollar known as special drawing rights. The International Monetary Fund uses SDRs as an accounting unit to let nations hold funds within the IMF based on a basket of major currencies.

A perfectly reasonable criticism, in my opinion.

 

[Akka]

I strongly support this change. USA has been able to "cheat" for decades by having its currency being the world's reserve.

Should be quite interesting to see how it will develop

 

[Cutlass]

Relative =/= Absolute. Other major currencies are doing worse. So the dollar is still the safest long term.

 

[say1988]

Except the intent is to instate a global reserve system based on a basket of a number of major currencies, which should provide stability some degree of stability unless a shock hits them all at once. Whihc would be superior to any one currency, but it does have its own problems.

 

[Integral]

I strongly support this change. USA has been able to "cheat" for decades by having its currency being the world's reserve.

Should be quite interesting to see how it will develop

Cheat how, exactly?

 

[MobBoss]

A report by the United Nations says the American dollar should be ditched as the main global reserve currency. It also found that developing countries have been hit by the dollar's loss of value in recent years. A number of states, including Russia and China, have repeatedly called for a new reserve currency system. The UN has now suggested using a basket of currencies for this purpose. How would this effect the Us dominance on the Worlds economic ?

Please watch this Video for more Information on this subject.

Do you have something other than a youtube link to confirm or verify this?

Btw, why would the UN of all things make such an announcement. Sounds odd. Especially in light of how well the dollar has been doing in comparison to the rest of the worlds currency lately....

 

[duckstab]

Cheat how, exactly?

Yeah, how? The USA hasn't forced the world's governments to adopt the dollar as a reserve currency. They've chosen to do so because its stability and safety allows them to hedge against the volatility of their own currencies.

Now China's pegging of the yuan to the dollar, that's cheating. It's a purely protectionist move that keeps the price of Chinese goods artificially low.

 

[Airstrike92]

This guy knows how we do things around here. He must have been lurking for a while.

Anyway, I think we should keep the US dollar as the universal form of currency.

 

[Syterion]

This could hurt Obama politically.

 

[Godwynn]

I'll bet $5 that the dollar's demise doesn't happen within 1 year.

 

[Antilogic]

Now China's pegging of the yuan to the dollar, that's cheating. It's a purely protectionist move that keeps the price of Chinese goods artificially low.

Exactly.

And this isn't about the "demise" of the dollar--it will still be used in the USA. Weaker dollars would also help our trade deficit, so it would be a good thing. I say ditch that pride and let the economy recover.

I'll bet $5 that the dollar's demise doesn't happen within 1 year.

So you get $5 in good dollars if it doesn't happen, or have to pay $5 in worthless dollars if it does? And I thought I was sneaky.

 

[emzie]

Quick, trade your soon-to-be useless dollars for my safe gold!

 

[say1988]

I can't wait to hear people whine when gold plummets.

If this did happen, if wouldn't destroy its value. Yest it will fall due to an influx of dollars being released from reserves (which isn't necessarily that bad). If it does happen, it will likely be a gradual process in any case, so there shouldn't be one massive shock.

And this could only be good for the world economy, relying on a single currency is quite dangeruos. Countries should either voluntarily diversify their holdings or the adoption of this system should be a high priority.

 

[Cutlass]

Except the intent is to instate a global reserve system based on a basket of a number of major currencies, which should provide stability some degree of stability unless a shock hits them all at once. Whihc would be superior to any one currency, but it does have its own problems.

Then you get the weighting of a bunch of people hired for that purpose, and all the baggage they bring to the table rather than market rates. Unlikely to be an improvement.

 

[Riffraff]

Well the last similar thread saw the Euro zone breaking up ' in a matter of weeks' so I guess the Dollar is doing just dandy.

 

[Babbler]

The problem with replacing the dollar is mainly finding something else to replace it; none of the contenders seem any good.