The UN talks global currency… again (as if they didn’t already make fools enough of themselves before)

Beacons of political expediency that the United Nations are, they are once again proffering nonsense about what the world may or may not need as currency.

As I already mentioned in previous posts (here for example) the UN is suggesting nothing but more of the same. Sure the titles of what pass for reports at the UN are catchy but once you’re done reading you realize they suggest nothing but more of the same except with a different name. To wit:

Scrap Dollar As Sole Reserve Currency: UN Report

http://www.reuters.com/article/idUSTRE65S40620100629?feedType=RSS&feedName=topNews

Excerpts and comments:

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.”

Guido here: OK, the caption is reasonable because true.

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.”

Guido here: True enough. But aren’t you guys late to the party? The USDollar has lost about 94% of its purchasing power over the past 100 years and it is now you realize it is not a stable currency?

[purchasing+power.gif]

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.

Guido here: Due to the fact that the SDR still maintains a portion of gold backing, it is a better proposition to other fiat currencies. Nonetheless, the largest component of the SDR is still “a basket of currencies” i.e. it is largely a fiat currency. So, in actual fact, UN officials prove they don’t understand what is at the heart of our current crisis.

The report said a new reserve system “must not be based on a single currency or even multiple national currencies but instead, should permit the emission of international liquidity — such as SDRs — to create a more stable global financial system.”

Guido here: This is what the UN is so good at. Telling us what to do but not how. “Permit the emission of international liquidity”… great idea… but how? Are you guys advocating a fiat currency? If so, how is that different from what we currently have?

“Such emissions of international liquidity could also underpin the financing of investment in long-term sustainable development,” it said.

Guido here: If you understand what the statement above means, please explain it to me. My opinion is that this is what your tax Dollars are financing: talking heads.

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