In a radical report, the UN Conference on Trade and Development (UNCTAD) has said the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises.
It added that the present system, under which the dollar acts as the world’s reserve currency , should be subject to a wholesale reconsideration…
“Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability,” said Detlef Kotte, one of the report’s authors. “But you will also need a system of managed exchange rates. Countries should keep real exchange rates [adjusted for inflation] stable. Central banks would have to intervene and if not they would have to be told to do so by a multilateral institution such as the International Monetary Fund.”
I’m sure that prophecy hounds are howling that the one world currency is around the corner (as they did when the Chinese suggested SDR’s for that purpose) but let’s stop and think a minute.
The fact that people think in terms of “the world’s reserve currency” should tell us that we’ve had a “one world currency” for a lot longer than we’d care to admit. Before the USD it was the GBP; before that one could only speak of the “global economy” regionally. We certainly had foreign trade, extensive foreign trade, but it was not on the world-unifying scale we have now.
The second is the problem is simple: who’s going to control this currency? The UN isn’t the strongest institution for the job; it would in effect place the world currency over its members. Since each one has one vote in the General Assembly, do you think that even an America hater like George Soros is going to take his chances with this crew? As long as international control is problematic, the “smart money” (the copious money) will place their bets on national currencies.
And there’s one more thing to chew on:
The proposals would also imply that surplus nations such as China and Germany should stimulate their economies further in order to cut their own imbalances, rather than, as in the present system, deficit nations such as the UK and US having to take the main burden of readjustment.
So why would surplus nations want to spend their precious resources to bail out profligate Anglophone ones? Only to the extent that it alleviates their own pain. And that isn’t enough to “let the good times roll” in London and New York.
In the meanwhile, Christians, let’s stop being glued to the prophecy clock and focus on the harvest. The clock is running!