Comments on: Whose money will prevail as reserve currency? Wed, 16 Nov 2016 01:37:11 +0000 hourly 1 By: Roger Swain Sun, 01 Nov 2009 16:18:23 +0000 GOLD ?

By: Anubis Fri, 30 Oct 2009 15:55:36 +0000 Apologies Jane, however I find it repugnant that the Great Debate confines itself to issues regarding global finance and economics/politics. Particularly in the face of human suffering around the globe brought on by the activities of greedy, self absorbed corporate moguls and investors.

The planet and all life on it is slowly dying. Humanity is descending into a depravity of biblical proportions. Yet there seems to be no end of those ready to comment foreign trade, monetary policy, banking regulation…etc.

There are no correct policy decisions in any number of these fields that will solve our problems. That would be merely treating the symptoms. There is a larger problem. Greed. Capitalism has become a religion. Nothing can be done if the market won’t support it.

The Rapanui I am sure were true to their religion as the cut down the last trees on Easter Island in order to build and erect one more monolith to their gods so that the harvests would come back. Never mind that cutting down all the trees eroded their good soil. With no trees left to build boats, they couldn’t even leave the island.

By: Sergey Tue, 27 Oct 2009 17:08:23 +0000 Jane operates with-in perfect World of economical model.
But all problems are coming from the parameters that we fail to factor-in.

USA no longer has control over USD. The key to USD stability is in China hands.

China has ability and political will to see yuan as a World currency. It cannot happen overnight. Because today yuan is closely tight to USD. But China make first steps to introduce yuan as one more currency and potentially the World currency.

China issued yuan denominated loans to other countries like Argentina.

Last month China ran first action of yuan sovereign bonds in Hong-Kong.

China gov has more than enough USD bonds to unleash series of “micro shocks” to scare markets from USD to the new reserve currency. That would be…

At the same time gov controlled enterprises hold tons of derivatives and can shock almost every market. They just unleash one more shock cialServicesAndRealEstateNews/idUSSP4732 7420090831

It was another in 2008 when some Chinese banks refused to pay by FX contracts.

It is unclear if these actions cause more damage to China reputation than to USD.
The alarming fact that the force behind these actions is State-owned Assets Supervision and Administration Commission.

By: The Real Deal Mon, 26 Oct 2009 14:32:37 +0000 “So, how bad are these fundamentals?”

Jane, wrong question, and wrong analysis.

The dollar problem insofar its role as reserve is not the fundamentals, albeit clearly the fundamentals have been much weakened. Fundamentals can be fixed. Difficult but fixable.

The dollar unfixable problem is that the United State has abused it profoundly. So much so that most of the world – leaders and people – are now convinced that they can no longer trust it. They just don’t believe the people who manages it – the Fed, Congress, Administration, major banks, will be able to fix the US economy with reserve interests (namely, foreign holders of trillions of dollar) in mind. The world is holding its breadth to get screwed again by the US Fed.

Therefore they will move away. Yes there is no true alternative now – one cannot replace a currency dominant for 70 years without a great deal of work. But if you only analyze the present currency situation you are gravely mistaken. Because when so many major countries have lost trust in the dollar, the momentum to do something about it is unstoppable. The dollar status is not mandated by the heaven. Abuse it, lose it.

By: Rayme Mon, 26 Oct 2009 03:03:39 +0000 I’m not sure that arguing over which Fiat Currency backed by nothing is best to use as currency is the key argument.

By ramping up the printing press, the US is telling all foreign holders of US debt as well as it’s own citizens that they are defaulting on their debts in the most politically acceptable way.

The US defaulted on it’s debts in the 1970’s when Nixon took us off the Gold Standard. US Government will default again throwing the entire world into a spiraling economic depression.

Without sound money, any argument regarding currency is fraud.

By: paul lennarson Fri, 23 Oct 2009 00:07:41 +0000 Thanks, Jane, for the insight regarding the reserve currency. The lack of European single sovereignty had escaped me as a drawback for the Euro. It makes perfect sense and your article shows some value to the terrific drain on U.S. resources in being the “policeman to the world.” It has preventing the “Black Swan” event.
Looking back to 1944, who would pay $1.50 for a DeutschFranc? Or who would want to pay Chairman Mao 2 cents apiece to murder millions? Should we gamble against the advice of George Washington in 1792? “Do not get involved with European entanglements.”
The European blossom is a beautiful thing, The Chinese miracle also….
Fire up the carrier reactors, send the planes into the wild blue yonder, bless the soldiers. Keep this glorious garden blooming!

By: jason Thu, 22 Oct 2009 04:44:19 +0000 How about the shekel (NIS)? Stanley Fischer is turning out to be the central banker par excellance.

By: James Reginald Harris, Jr Wed, 21 Oct 2009 15:16:43 +0000 The simple answer is the international conversion of dollar denominated assets into some type of pre-agreed basket exchange implemented based upon the process of the conversion to the euro model by the European Union.

That way there is no divestiture compulsion and the basket of currencies, currency would provide a more stable international standard on which the large intergovernmental exchange transactions are based.

BTW, Jane you’re stunning.

By: Edward Williams Wed, 21 Oct 2009 15:02:42 +0000 The global shift towards a multi-polar geopolitical world can only be realised if global trade utilises a basket of currencies/commodities – the world does not need a single reserve currency, it is simply not compatible with multi-polarism. Wake up America, you’re going to have to pay your debts back very soon!!

By: OG Wed, 21 Oct 2009 14:23:47 +0000 Strange how the UK pound is not mentioned. It meets all the criteria expounded in this article, such as being single soverignty, fully convertible and the ability to cope with huge liquidity.