BRIC and SCO de-peg their currencies
Posted by Ivo Cerckel on June 17th, 2009
BRIC and SCO use IMF SDRs to accelerate transition towards de-dollarisation
I hope somebody within the Gulf Co-operation Council Monetary Union can hear me.
Emerging powers flex muscles at U.S.
Jun 16, 2009 at 20:08
http://business.maktoob.com/20090000005533/Emerging_powers_confab_knocks_dollar/Article.htm
SNIP
Leaders from the world’s top emerging economic powers on Tuesday delivered a warning-shot to the domination of the U.S. dollar as their new forum flexed its muscle at a first ever summit.
The leaders of Brazil, Russia, India and China – dubbed the BRIC nations – called for a “more diversified” currency system after a meeting that came amid growing talk over the dollar’s future as the global reserve unit of choice.
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Arkady Dvorkovich, Medvedev’s chief economic aide, [...] suggested the International Monetary Fund should revise the basket determining its Special Drawing Rights.
UNSNIP
The IMF was instituted by the Bretton Woods Agreements of 1944.
The Agreements linked the US dollar to gold at fixed parity and all other currencies to the said dollar.
On 15 August 1971, US president Nixon broke the Agreements, thereby causing the 1973 oil shock.
Since that date, the IMF has no more reason to exist. If the IMF continues to exist, it is to maintain the bankrupt dollar-regime alive.
On 7 August 2008, European Central Bank president Jean-Claude Trichet dared therefore, at the question and answer session after the decision of the ECB to leave interest rates unchanged, to criticise the dollar freak par excellence, the IMF, and would only ask the IMF to do their “very important” (sic) job and Trichet had no doubt they will continue to do their job very well.
http://bphouse.com/honest_money/2008/08/12/the-dollar-is-dead/
(If the link does not work, try to copy it and to paste it in your browser)
Or are the BRIC and the Shanghai Co-operation Organisation using the IMF Special Drawing Rights as a vehicle to accelerate transition?
In order to achieve an acceptable de-dollarisation, they should, like euroland, de-peg their currencies from anything.
As the late European Central Bank president Dr Willem F Duisenberg said in 2002, the euro is the first currency that has not only severed [or de-pegged] its link to gold, but also its link to the nation-state.
(International Charlemagne Prize of Aachen for 2002
Acceptance speech by Dr. Willem F. Duisenberg, President of the European Central Bank, Aachen, 9 May 2002
http://www.ecb.eu/press/key/date/2002/html/sp020509.en.html
I hope somebody within the Gulf Co-operation Council Monetary Union can hear me.
Ivo Cerckel
honestmoney@maktoob.com
No related posts.
June 18th, 2009 at 12:22
Here’s an article which does not even mention the IMF
and prefers to IGNORE the IMF.
That’s how it should be …
SCO summit agrees to adopt common currency
17 June 2009 @ 06:05 pm ET
http://www.ibtimes.com/articles/20090617/sco-summit-agrees-adopt-common-currency.htm
SNIPS
The Shanghai Cooperation Organization (SCO), comprising Russia, China and four ex-Soviet Central
Asian republics–Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan– held their own summit Tuesday
in the Russian Ural city of Yekaterinburg.
The leaders of SCO countries agreed to take Russia’s proposal on using their national currencies in
mutual settlements and introducing a common currency for the group.
The common currency would be similar to the European currency unit and the monetary union currency
in 2013 of the Gulf Cooperation Council countries that include Bahrain, Kuwait, Qatar and Saudi
Arabia.
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“The current set of reserve currencies and the main reserve currency – the U.S. dollar – have
failed to function as they should,” [Russian President Dmitry] Medvedev said.
He added that the Russian ruble could hopefully become a reserve currency in the foreseeable
future.