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[bacasper]

Then we're really in trouble!

Scrap dollar as sole reserve currency: U.N. report

By Louis Charbonneau

UNITED NATIONS | Tue Jun 29, 2010 4:56pm EDT

UNITED NATIONS (Reuters) - A new United Nations report released on Tuesday calls for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value.

But several European officials attending a high-level meeting of the U.N. Economic and Social Council countered by saying that the market, not politicians, would determine what currencies countries would keep on hand for reserves.

"The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency," the U.N. World Economic and Social Survey 2010 said.

The report says that developing countries have been hit by the U.S. dollar's loss of value in recent years.

"Motivated in part by needs for self-insurance against volatility in commodity markets and capital flows, many developing countries accumulated vast amounts of such (U.S. dollar) reserves during the 2000s," it said.

The report supports replacing the dollar with the International Monetary Fund's special drawing rights (SDRs), an international reserve asset that is used as a unit of payment on IMF loans and is made up of a basket of currencies.

"A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency," the U.N. report said.

more at link

[mises]

I read that report. Or one similar. It also attempts to change the name of money printing/quantitative easing to "liquidity emissions". Can't make this stuff up.

So the idea is to move to IMF SDR's. A year ago the idea was the SDR's would replace the dollar in 5-10 years but it might happen sooner now because of deflation. Public policy = Anything But Deflation. I like deflation, but I don't get a say.

So expect a gigantic global inflation followed by a rush to hard assets. (I'm stealing that prediction from Jim Rickards).

[rollo]

This is real???? Incredible! A different reserve currency but not a made up monstrosity. Mind boggling! Perhaps a baket of currencies.

[ThingsComeAround]

One world currency is coming next

[mises]

[blomkvist]

U.S. Government, contrary to what seems to be the popular belief, does not control or regulate inflation. Banks do.

[bacasper]