Russia: New world reserve currency a decade away
Published: June 6, 2009
Updated 8 months ago
Moscow’s finance minister says China’s Yuan the ’shortest path’ to new world reserve; predicts ‘new major currency unions’ not soon to emerge
Developed nations are dragging their feet over reforms of the International Monetary Fund, where Moscow wants to have a greater say, Russian Finance Minister Alexei Kudrin said on Saturday.
“We already see a lot of foot-dragging and tripping-up along this path,” said Kudrin during Russia’s premier economic forum in Saint Petersburg.
“There is a need to make the IMF a true representative of the world’s leading economies. It’s not there right now,” he said, noting that China had a lower representation quota than Switzerland or Belgium.
The issue of IMF reform should therefore be raised “in earnest, in a bold way,” Kudrin said, adding countries should be “represented in proportion to the strength of these economies and their role in the world economy.”
Along with other major developing economies such as India and Brazil, Russia wants to increase its representation in the IMF and have a greater say in decision-making currently dominated by developed economies such as the United States.
The IMF is working to issue its very first bonds and Russia said late last month it was considering buying up to 10 billion dollars’ worth of the bonds to help boost the institution’s resources.
Russia has said the bond purchase would be in line with obligations it took upon itself at the G20 summit in April where it stressed it wants more power within the financial institution.
Kudrin also said that the Chinese yuan could become a global reserve currency in a decade if Beijing moves to “liberalize” the country’s economy.
“I don’t believe that new major currency unions will emerge in the near future. I think the shortest way would be if China liberalizes its economy and wishes to ensure the convertibility of the yuan,” he said.
He said it would take about a decade, adding it was “the shortest path to creating a new world reserve currency.”
The Kremlin earlier this year criticised the dominance of the US dollar in global economy, saying there was a need for a new supranational currency to prevent a repeat of the current economic crisis.
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What good will a new world currency do us if our bankers can’t count? The New World Order will be controlled by the first nation to insist upon generally accepted accounting procedures. Hedge funds and derivatives will not be on the list in those calculations.
Gold and silver is money. Paper is not.
Mister Abraham, please,
I thought you would have learned from the golden calf metaphor…
I suggest that you go to Telluride, Cripple Creek or Victor, CO and see if you can extract gold from the available ore. You will find, as I did, that the cost of extraction far exceeds the value of the gold less the various Colorado state taxes, Federal taxes and assaying fees that you WILL pay. Silver is worthless; just ask the Bass bothers in Dallas. We are on a gold system of sorts but it’s only profitable if you have an earth moving corporation.
George W. Bush made toilet paper more valuable than than paper money. As they say in Georgia, “It’s all according to what it’s worth.”
Good luck,
grinder
Maybe that’s why Russia and others want in;
to change that NWO controlled by US corporate domination.
Given the current results they may be wiser to stay out altogether.
What are they talking about they are already trading a global currency between the private global banksters! Read learn: http://www.theinternationalforecaster.com
mmmm….i dunno? the world isnt that small and besides where does the treasury reside, who controls the ebb and flow?
sounds like a world war in the making some day to me.
Hey pittbull,
The size of the world is NOT the issue; kind of like the size of your unit. World wars only come when there is a profit to be made and populations to puzzle. I do not see any profits out there for our combative corporations; they already have all the money. What they don’t have they can borrow from the Fed.
Keep working on it,
grinder
This IMF is bull. How can you have a country’s money as world reserve currency when that currency is subject to manipulation by that country. The only reserve currency that will work is gold since it cannot be manipulated by any one country and only if it is simultaneously a money/reserve currency and a commodity with prices set by the free market and not by governments. Read “What has government done to our money?” by economist Murray N. Rothbard
You can read it online for free from the Mises Institute which preserves the author’s works:
http://www.mises.org/books/whathasgovernmentdone.pdf
There is also the audiobook for free online:
http://mises.org/media.aspx?action=category&ID=92
IMF bonds will be “based” on what? “The full faith and credit of the IMF”? If it becomes “dissolved”, like the League of Nations was, what happens to those “holding” the bonds????
Hey dan,
The League of Nations held no debt, they were a deliberative body. ALL debt is based upon the good faith of both the lender and the borrower. All of the dollars ever printed, spent, burned or otherwise disposed of represented the GOOD FAITH of the American people. A dollar is recognized in any part of the globe as currency backed by the American people. The derivative markets and the hedge funds that you hear about have NOTHING to do with this bedrock good faith. They are an estranged and perverse numbers game for fools and people with too much time on their hands.
You stay busy and don’t be foolish. I lost my ass in this market.
grinder:(