U.N. calls for replacement of U.S. dollar

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Joins Russia, China and G20 with demands IMF step forward

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World organizations, including the United Nations, are openly calling for the creation of a one-world currency to replace the dollar – and the Obama administration’s trillion-dollar deficits are serving as a trigger for the currency switch, Jerome Corsi’s Red Alert reports.

A United Nations report recommended that a new one-world currency should be created to replace the dollar as the standard for foreign-exchange holdings in international trade.

“If the plan succeeds, the United Nations would effectively end up replacing the United States as the issuer of the one-world international currency used as the standard of foreign exchange to settle international trade transactions,” Corsi wrote. “The move would obviate the need for any nation state in the future to be the arbiter of world trade, marking yet another blow to national sovereignty on the path to one-world government.”

The report, released by the United Nations Conference on Trade and Development, or UNCTAD, endorsed a proposal that Special Drawing Rights, or SDRs, issued by the International Monetary Fund, or IMF, “could be used to settle international payments.”

Red Alert has previously reported that Russia and China championed the idea to use the IMF’s Special Drawing Rights as a new international currency as a proposal that was adopted by the G-20 meeting held in London last April.

Corsi noted, “That G20 summit meeting took an important step toward creating a new one-world currency through the International Monetary Fund that is designed to replace the dollar as the world’s foreign exchange reserve currency of choice.”

Point 19 of the final communiqué from the G20 summit in London on April 2 stated, “We have agreed to support a general SDR which will inject $250 billion into the world economy and increase global liquidity,” taking the first steps forward to implement China’s proposal that Special Drawing Rights at the International Monetary Fund should be created as a foreign-exchange currency to replace the dollar.

The IMF created SDRs in 1969 to support the Bretton Woods fixed exchange-rate system.

“The international supply of two key reserve assets – gold and the U.S. dollar – proved inadequate for supporting the expansion of world trade and financial development that was taking place,” a document on the IMF website explains. “Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF.”

When the Bretton Woods fixed-rate system collapsed, major world currencies, including the dollar, shifted to a floating exchange-rate system where the price of the dollar and other major world currencies was created by trading on international currency exchanges.

Until the current global economic crisis, SDRs issued by the IMF have been used by IMF member nation states primarily as a reserve account to support international trade transactions, not as an alternative international currency available to settle international debt transactions in danger of default.

“The discussion of using SDRs at the IMF as an international reserve payment system is further evidence that the momentum to create a one-world currency is gaining among not only among academic economists, but also among and professional economists holding prominent government positions,” Corsi wrote.

Red Alert previously reported that strong support for the idea of a one-world currency has recently come from Canadian economist Robert Mundell, who won a Nobel-prize in 1999, for his work formulating the intellectual basis for creating the euro.

Red Alert’s author, whose books “The Obama Nation” and “Unfit for Command” have topped the New York Times best-sellers list, received his Ph.D. from Harvard University in political science in 1972. For nearly 25 years, beginning in 1981, he worked with banks throughout the U.S. and around the world to develop financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. In this career, Corsi developed three different third-party financial services marketing firms that reached gross sales levels of $1 billion in annuities and equal volume in mutual funds. In 1999, he began developing Internet-based financial marketing firms, also adapted to work in conjunction with banks.

In his 25-year financial services career, Corsi has been a noted financial services speaker and writer, publishing three books and numerous articles in professional financial services journals and magazines.

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United Nations Report Calls for Creation of Global Reserve Bank

WORTHY NEWS

By George Whitten, Jerusalem Bureau Chief

JERUSALEM, ISRAEL

The United Nations has called for the replacement of the U.S. Dollar and the creation of a global reserve bank and a new global currency to protect emerging markets from the “confidence game” of financial speculation according to a report obtained by Worthy News.

The report, published by the United Nations Conference on Trade and Development, said one solution could be the “issuance of special drawing rights (SDRs)” through the International Monetary Fund (IMF) multilateral development banks. The report called for “an international reserve system that uses one or several national currencies as a reserve asset” as a means of international payments.

Earlier this year, China called for the creation of a new global “supranational currency” such as the International Monetary Fund’s special drawing rights (SDR’s), to add stability to global financial markets.

The UN said in its report that, “Such a multilateral system would tackle the problem of destabilizing capital flows at its source.” It would, the UN added, “remove a major incentive for speculation and ensure that monetary factors do not stand in the way of achieving a level playing field for international trade.”

NEW SYSTEM

The UN stressed a new financial system would also “get rid of debt traps and counterproductive conditionality.” It also said that “countries facing strong depreciation pressure would automatically receive the required assistance once a sustainable level of the exchange rate had been reached in the form of swap agreements or direct intervention by the counterparty.”

China, India, Brazil and Russia have called for a replacement to the dollar as the main reserve currency after the worldwide financial crisis was sparked by the collapse of the U.S. mortgage market.

On Sunday, a key Chinese official warned about the collapse of the dollar saying, “If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies.”

China holds more than $2 trillion dollars in U.S. bonds, the largest in the world.