US backing for world currency stuns markets

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US backing for world currency stuns markets

US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is "quite open" to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.

By Ambrose Evans-Pritchard
Last Updated: 8:14AM GMT 27 Mar 2009

The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens.

David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geo-finance. "The mere fact that the US Treasury Secretary is even entertaining thoughts that the dollar may cease being the anchor of the global monetary system has caused consternation," he said.

Mr Geithner later qualified his remarks, insisting that the dollar would remain the "world's dominant reserve currency ... for a long period of time" but the seeds of doubt have been sown.Article continued at http://www.telegraph.co.uk/finance/economics/5050407/US-backing-for-world-currency-stuns-markets.html

[Hispeed1]

And so it begins...

[Laworkerbee]

Mr Geithner,

Think more, talk less.

Douche :roll:

[Laworkerbee]

For ****s sake how did this thread turn into whether or not the bible is historically relevant?

[Laworkerbee]

I was kind of wondering how it turned into an attack on the Bible, and Christianity, I guess that's ok though.

The thread is titled US backing for world currency stuns markets

Not "is the bible accurate for forecasting future world events."

[Laworkerbee]

I know that, but when some assholes have to compulsively interject their offensive opinions toward my religion into the thread, then I'll retort.
I didn't start with the BS so **** off, and take it up with the people that did.

My original post asking why this thread was being derailed wasn't directed at you so untwist your panties.

****off? that doesn't sound very Christian :roll:

[Lt-Col A. Tack]

"US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is "quite open" to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund."

So this new "global reserve currency" The US will be supporting it and the dollar?
I can't understand what the thinking is here. Geithner really is horrible.

I just worry that our dear leader will call a new conference, looking confident and relaxed, say something soothing and we'll forget all about it.

[Raptus_regaliter]

So does this mean that Geithner has replaced Bush as the most likely Antichrist?

[INAT]

So in less than a week we have Obama on Tuesday saying the US will not support the idea to
Geithner now saying the US would back the idea?


The attempt to systematically destroy this country should now be evident to all.

[2Sheds_Jackson]

Hey, everybody sells. We're in the middle of a sales process right now, and Geithner is trying not to queer the deal. He doesn't want to upset the Chinese until they've bought all those treasury notes and they've put their checkbook back in their pocket. Then he'll be all "sorry, we can't support it at this time". Caveat emptor and all that.

[a_very_ex_STAB]

My original post asking why this thread was being derailed wasn't directed at you so untwist your panties.

****off? that doesn't sound very Christian :roll:


Ah but the whole thing about Christianity is that you can do all that stuff and it's ok as long as you 'fess up to the Lord afterwards in private and say a few Hail Marys.:roll:

Sin as much as you like but make sure you keep that bit of real estate in heaven that you've had your eye on by coughing to it to the Boss.

[a_very_ex_STAB]

So back on topic.

Can anyone hear the New World Order's black helicopters doing their start-ups?

[sepheronx]

hahaha, it is funny that some idiot posts flame bait about religion (typical of an atheist) and everyone else soon follows in either defending religion or just sit here and bash it. When this thread is about a united currency.

Good job people.

Anyway. back on topic, a world currency would be good to allow 1 currency = 1 currency rather then having all this other stuff like value of each individual currency, and making it much easier for trading. But I don't understand it on how it could battle this economic issue at the moment.

[theclash]

Don't we already have a single world reserve currency already? Known as gold.
Or am I being simplistic? Afterall, I didn't take my economics GCSE.

[sepheronx]

Don't we already have a single world reserve currency already? Known as gold.
Or am I being simplistic? Afterall, I didn't take my economics GCSE.

At one point in history, yes, Gold was used as a source to determine the value of the dolor or currency used. But in today's society, it is more of just a precious metal with value, and the currency is determined by credit.

[Laworkerbee]

Obviously the word of God offends many here. It was not my intention to derail this thread. Perhaps i need to start a new thread on the subject of the bible, so that any questions that any member may have can ask.

Oh please man, it just has nothing to do with this thread. Are you going to bring up the word of God in a thread discussing donuts too?

[Mikhael]

the Bible has proven time and time again to be a very accurate account of the worlds early history.

Well i like sci-fi books but i dont believe in the things in them are real p-)


About world currency well we will see what will future will bring us.

[Breakfast in Vegas]

Geithner isn't really Obama's bright and shining star thusfar.

Seems the Obama government has adopted the "every thing is a good idea, we'll think about it" policy until it figures out what it wants (and can) actually do. Not exactly convincing.

[Col.O'neill]

Oh please man, it just has nothing to do with this thread. Are you going to bring up the word of God in a thread discussing donuts too?

I would not have brought it up if it was not related. According to the infraction i just received im derailing this thread, so i will not be discussing this any further. I will start a new thread and you can ask whatever u want there.

[PeterG]

I can't see how the rich nations could possibly give up their currency. Like us in Norway - we should give up our stable Krone, for other broke-ass nations like Zimbabwe..? And to the spanish inquisition wannabees out there:

http://www.youtube.com/watch?v=ZNeq2Utm0nU

[Flagg]

Hey, everybody sells. We're in the middle of a sales process right now, and Geithner is trying not to queer the deal. He doesn't want to upset the Chinese until they've bought all those treasury notes and they've put their checkbook back in their pocket. Then he'll be all "sorry, we can't support it at this time". Caveat emptor and all that.

Yeah....I reckon there will be a whole lot more sweet talkin' going on.

I'm watching for China to be trying to turn those US T-Bills into commodities, technology, intellectual property, sustainable businesses, and influence while those T-Bills are still worth something.......because they're not going to be worth much down the road.

The smartest folks I know are looking to shift out of T-Bills partially or entirely and into "something else"..."something else" probably being energy.

"As The World Turns" would probably be the best geopolitical soap opera analogy at this stage......lots of lyin', cheatin', stealin', two-faced type stuff with gobs of melodrama.

I can't help but think of that South Park Movie where Saddam sweet talks The Devil.....with the US being Saddam cartoon and China being The Devil cartoon.

Satan: Is *** the only thing that matters to you?
Saddam Hussein: I love you.

Satan: How come you always want to make love to me from behind? Is it because you want to pretend I'm somebody else?
Saddam Hussein: Satan, your ass is gigantic and red. Who am I going to pretend you are, Liza Minelli?

Satan: Saddam, I need to talk to you
Saddam Hussein: Ah, you'd better get packing, b!tch, we're running out of time.
Satan: [sighs] sometimes you can love someone very much, but still know they aren't right for you.
Saddam Hussein: What the *fcuk* are you talking about?
Satan: You treat me like sh!t, Saddam! I'm leaving you!
Saddam Hussein: What? No? No! You can't do that! I have to go to Earth!
Satan: You don't even have any respect for me.
Saddam Hussein: Sure I do, guy, please, just hear me out

[Mu-Meson]

Heckuva job your doing there Timmy!

[Flagg]

I can't see how the rich nations could possibly give up their currency. Like us in Norway - we should give up our stable Krone, for other broke-ass nations like Zimbabwe..? And to the spanish inquisition wannabees out there:

http://www.youtube.com/watch?v=ZNeq2Utm0nU

Best to keep a low profile there Norway......if you make too much noise they'll come and steal your sh!t.

Countries with such massive savings and bank deposits should probably just pretend they're broke like everyone else.

I'd suggest telling all your fellow Norweigans to pretend you're really poor like everyone else.

[KilRemgor]

In fact if US agrees on this, the new global currency proposal will likely get accepted. Even if it doesn't there is a certain chance.

See current progress below.

So far, the following countries/organizations have proposed/supported it, ordered by proposal date (news are not the first reports, but latest on each issue):

Kazakhstan: http://www.themoscowtimes.com/article/600/42/375212.htm
Russia: http://www.russiaprofile.org/page.php?pageid=Experts%27+Panel&articleid=a1238171137
China: http://agmetalminer.com/2009/03/27/china-proposes-a-global-currency-to-replace-the-us-dollar/
Indonesia, Malaysia, Thailand: http://www.bloomberg.com/apps/news?pid=20601087&sid=aAX46LfGPVf4&refer=home

Countries/organizations whose politicians/economists expressed positive views at least about discussing the idea: Australia, Iran, US Treasury, IMF

Countries/organizations who oppose new world currency: US (Obama), Great Britain

Likely, all the developing economies will support the idea.
All resource producers are very likely to support the idea.
All export-oriented countries are likely to support the idea.
US leadership and perhaps Europe are very likely to oppose it, but there's little surprise here.

Depending on political/economic ideas, different things may happen. Immediate creation of such a currency on upcoming G20 summit is not likely unless US or Europe support the idea.

However, that currency may be slowly created as China/Russia dollar alternative, attempting to advertise it as backed by 'real goods' (oil/gas and cheap export products) and not 'virtual guarantess' and 'west strong trust' like Euro/US. Overall it is quite clear that for all the BRIC countries and developing economies this new reserve currency may seem far better than USD due to being tailored to both things they operate with, but this process might be very slow. Given this, either US/Europe will have to eventually accept it (though it may take a decade or longer) as at least alternative, or aggressively attack the idea, somehow trying to stop this concept from working (either by buying its supporters with new guarantees/economic help or threatening them). There are other options for both sides as well.

[Panchito12]

So back on topic.

Can anyone hear the New World Order's black helicopters doing their start-ups?

....I can already see the babies getting tracking chips implanted so that the UN can monitor their actions.p-)

[xav]

What China wants, China gets. Welcome to economic realism.
edit
by the way..;


Bachmann bill would ban global currency
Rep. Michele Bachmann (R-MN) has introduced legislation that would "bar the dollar from being replace by any foreign currency." A statement from Bachmann's website:

“Yesterday, during a Financial Services Committee hearing, I asked Secretary Geithner if he would denounce efforts to move towards a global currency and he answered unequivocally that he would," said Bachmann. "And President Obama gave the nation the same assurances. But just a day later, Secretary Geithner has left the option on the table. I want to know which it is. The American people deserve to know."

On Monday, Geithner and Bernanke both rejected the idea of a global currency in Congressional testimony. But in remarks to the Council on Foreign Relations yesterday, Geithner indicated he was open to the idea.
http://briefingroom.thehill.com/2009/03/26/bachmann-bill-would-ban-global-currency/

They don't lose time in washington do they? :)

[KilRemgor]

Well, everybody knew that US leadership will oppose this, as a non-dollar global currency eliminates a lot of market control mechanisms US has. Surrendering them is not what one could expect from US.

Still, it was known before US would resist. Why all those countries are proposing the dollar replacement now?

Because currently during crisis they do feel that either they should get guarantees from US it won't screw their economies with 'Printing Cheat' (as it has done in previous crises, emerging least affected though it was the source and one to blame for the crises), or they should form their own economic system and eventually abandon US-mastered one.Trade/exchange would still go well in latter case, just those countries will have their say in market conditions and not at the mercy of US Treasury and printing machine.

[brainplay]

Don't we already have a single world reserve currency already? Known as gold.
Or am I being simplistic? Afterall, I didn't take my economics GCSE.

Not enough gold available to function as a reliable reserve. Heck, not enough in the world to cover the UK worth let alone the US. Used more as a benchmark than anything else. Kinda tough to use firm commodities as well.

Gold standard died decades ago. But the modern market system buried it 50ft under.

[sinophile]

There will be no new world currency. Gold will never again be a currency backstop. And Elvis is never coming back from the dead.

Get over it and move on.

[Flagg]

There will be no new world currency.

For the foreseeable future I agree.......several currency blocks/baskets within the next 10 years? Quite possibly.

Gold will never again be a currency backstop.

I don't think Gold will be THE backstop of any major currency or currency basket/block long-term....but to get from the current mess of "A" to the what's next of "B", will likely require "G" (gold) in some significant role/capacity during the interim and the transition.

And Elvis is never coming back from the dead.

Get over it and move on.

I would be happy to make a gentleman's wager in regards to currency baskets/blocks and/or Gold's significant role in the transition if you possess the long-term patience.

[MaverickCowboy]

Oh please man, it just has nothing to do with this thread. Are you going to bring up the word of God in a thread discussing donuts too?

God and donuts go hand in hand.

[Laworkerbee]

God and donuts go hand in hand.

Now you're speaking my language.

[sinophile]

I would be happy to make a gentleman's wager in regards to currency baskets/blocks and/or Gold's significant role in the transition if you possess the long-term patience.

I'll take the bet.

[budgie]

Actually last week the Euro finished nearly four cents down this week from a high of about $1.37 on Mon/Tue to about $1.33 on Fri, so dunno what this sudden plunge in the dollar against the Euro is. s#it I lost forty bucks thinking that would happen...

[Walter Sobchak]

So does this mean that Geithner has replaced Bush as the most likely Antichrist?

No... the Antichrist can only have a "-R" after his name.