US Backing for World Currency Stuns Markets

[peaceandlove]

A New World Currency Draws Nearer After Geithner's Slip

Submitted by cpowell on Thu, 2009-03-26 14:47. Section: Daily Dispatches
By Ambrose Evans-Pritchard
The Telegraph, London
Wednesday, March 25, 2009

Excerpt:

The pitfalls of a world central bank are obvious. It is hard enough for the European Central Bank to run policy for 16 states in a region with a shared history, and shared EU institutions (Commission, Court of Justice, competition police, etc). The politics of global monetary management would be poisonous.

The heads of the Fed, the ECB, and the Bank of England, must all testify before parliaments and answer to democracy. There is no world parliament, no world government. Who would control a super-IMF?

In theory, this world reserve bank would be above politics. China's plan suggests a resource currency along the lines of the "Bancor" floated by Keynes at Bretton Woods. This was anchored on 30 commodities, giving it a broader base than the Gold Standard. Such a currency would prevent the "credit-based" debauchery of today's fiat system, says Mr Zhou.

Complete article: http://www.gata.org/node/7303