By Shannon Bell
For the upcoming G20 on April 2, Russia for their part, has proposed a multinational global reserve currency to be issued by international institutions as part of reforming the global economic system.
Russian Ruble
The Russians have been adamant in their criticism of the U.S. dollar as the dominant global reserve currency in the world. Russia has been decreasing their own holdings of the dollar in recent years; both Putin and Medvedev have called for the Ruble to be used as a regional reserve currency, with no backers outside of Russia itself. From the Moscow Times:
Analysts said the new Kremlin proposal would elicit little excitement among the G20 members.
“This is all in the realm of fantasy,” said Sergei Perminov, chief strategist at Rye, Man and Gore. “There was a situation that resembled what they are talking about. It was called the gold standard, and it ended very badly.
“Alternatives to the dollar are still hard to find,” he said.
The Kremlin document on a global currency also said national banks and financial institutions should diversify their holdings of foreign currency reserves. It also says that there should be a complete restructuring of the global financial system to keep a crisis like our current one from happening again. Even going so far as to say there should be a conference after the G20 to adopt formal agreements on a new financial structure.
Sounds a lot like, “we’re going to do what we want and you Americans can just sit on it and spin”. Most analysts agree that the Russian proposal for a global currency at the G20 will not be enthusiastically received; for our sake let’s hope not.
I don’t need to tell you how bad it would be for us, if some currency other than the U.S. dollar were to be the world economic standard. The G20 is one of those events that nobody really pays attention to; this time we had better.
Global Currency Video
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Source: http://www.rightpundits.com/?p=3503
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