How to Create a New World Currency
China and Russia appears to be coming together for a common cause – to create a new world currency.
This new direction going into the G20 Summit is gaining momentum and seems to be growing louder than the battle by the American and some European nations call to win the battle over Tax Havens.
Here’s a little tongue in cheek look at how to create a New World Currency.
* Piss everyone in the world off with unwanted wars.
* Drive oil prices through the roof – along with commodities prices too.
* Deplete world’s pre-eminent currency (US dollar) reserves and print more money at will to pay for all that (some say yes, good idea they need to eat and pay the bills today, others are not so sure).
* Have the biggest financial fallout (some say the 1930′s was the biggest, but few remember that today) in history causing many billions of dollars from other countries to get wiped out too – more pissing off.
* Global economic regions have been working to establish their own working currencies – Euro, Asian Currency Unit (ASEAN), Yuan (China), but all are using the US Dollar as their main basis to work against.
* Is the US Dollar going out of style? Afterall, as economists aptly point out, mst of the “US Dollars” on the books are really just electrons on computer screens. There really isn’t enough real gold or cash currency to back that up.
* Or is it just the other economic superpowers wanting to get noticed (and they have very legitimate economic muscle) and get a piece of the world currency power or are they just, well, more than a little annoyed?
Here’s what Larry Kudlow of The Kudlow Report on CNBC is saying about a New World Currency:
“Going into the G-20 international meeting in London, the Chinese and Russians appear to be coming together in a call for a new world currency backed by gold. I really like the idea of reinserting gold into the world monetary system.”
“I was talking to Art Laffer… remarked that if helicopter Ben Bernanke continues to print new dollars, we’re gonna need a new world currency. And he agreed with Mundell that putting gold back into the world currency calculus is a good idea.”
“Incidentally, Art believes the best thing the G-20 nations can do at the London conference is to not coordinate policies. He thinks policy coordination will probably produce bad policy. He’s in favor of tax competition among nations, including so-called tax havens that the Europeans and Americans want to abolish. I totally agree. In fact, we ought to make the U.S. a tax haven by slashing the corporate tax, declaring a two-year capital-gains tax holiday, and moving towards a low-tax-rate flat tax. ” Read More…
If that ever happens, can you just hear the deafening cheers???
Watch Larry Kudlow on The Kudlow Report on CNBC at 7pm Weeknights.
But it appears the G20 Summit is not ready to talk about it – yet – bdnews24 has this to say…G20 not ready yet for new world currency debate :: Business …
Moscow has called outright for the G20 to start looking for alternatives to the dollar as the world’s main reserve currency, and Russian President Dmitry Medvedev renewed that call over the weekend. …
Please add your opinions – I don’t mind a cheeky take on this issue either.
Tags: New World Currency
Posted in World Currency | 3 Comments »
