The Scanner–International Edition, March 24, 2009: Say Goodbye to the Dollar? China, Russia Proposing a New World Currency for “Non-Credit” Based Economies, Echo G-20 Agenda of Expanding IMF; China Will “Consider” Buying IMF Bonds; 10th China Develpment Forum Underway (UPDATE 1X–Geithner Supports China Proposal??)

~~By InsightAnalytical-GRL

Scroll down for UPDATE

Whos in Charge Here?

Hu Jintao--Who's in Charge Here?--Barack Obama (Photo courtesy Xinhua via CRIEnglish.com)

Late last week I came across this release from Itar-Tass.  In case you can’t place the name, the IT website tells us that this agency is:

The successor to the Soviet TASS news agency, it was re-named in 1992, when Russia proclaimed its sovereignty following the collapse of the USSR. It has retained its status of being the state central information agency.

Needless to say, when Russia’s “state central information agency” talks, I listen. I held the story up and coincidentally, found something that should grab us all.  First, the story from Russia:

Russia proposes creation of global super-reserve currency

16.03.2009, 15.15

MOSCOW, March 16 (Itar-Tass) — Russia suggests the G20 summit in London in April should start establishing a system of managing the process of globalization and consider the possibility of creating a supra-national reserve currency or a “super-reserve currency.” The Russian Federation’s proposals for ways out of the ongoing financial and economic crisis and for a post-crisis order of the world financial system have been published on the Kremlin’s website. The proposals have been dispatched to the leadership of the G20 countries, the CIS and international organizations.

(SNIP)

The Russian side believes the summit should seek and achieve accord on the main parameters of a new world financial system. It suggests calling an international conference that would produce the basic parameters of a world financial architecture and adopt international conventions regarding a new financial world order.

Russia believes that the “obsolete mono-polar structure of the world economy should give way to a system based on cooperation by several major centers.”

In the sphere of control and supervision Russia suggests drafting and adopting an international agreement setting global standards of control and supervision in the financial sector – a Standard Universal Regulatory Framework (SURF).

Russia calls for reforming the international currency and financial system with the aim to strengthen its stability and control. In that connection the Russian side suggests discussing the possibility of expanding the list of currencies to be used as reserve ones, on the basis of the adoption of agreed measures to stimulate the development of major regional financial centers, and also “the creation of a supra-national reserve currency that will be issued by international financial institutions.”

“It looks expedient to reconsider the role of the IMF in that process and also to determine the possibility and need for taking measures that would allow for the SDRs (Special Drawing Rights) to become a super-reserve currency recognized by the world community,” the document says.

MORE

The release goes on to discuss for a new mandate and more resources for the IMF.

Well, now add this piece, posted by Logistics Monster yesterday in a post entitled Quick Note About New Global Currency! Pay Attention!

The post quotes an article from the Financial Times‘ Asia-Pacific section (excerpt):

China calls for new reserve currency

By Jamil Anderlini in Beijing

Published: March 23 2009 12:16 | Last updated: March 23 2009 23:24

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.

I suggest readers get over to Logistics Monster for the full quote from the article, which details the “special drawing rights” that we see mentioned in the Russian Itar-Tass release.

The Russia-China discussions apparently are just megaphones for what’s up at the Official G-20 website (excerpt):

The financial markets and the world economy continue to face serious global challenges and the severity of the crisis and ongoing uncertainties demonstrate the need for urgent action. During the United Kingdoms Chair, the immediate priority will be to gain further agreements for a concerted, co-ordinated international response.

The G-20 will need to send a strong signal that it is prepared to take whatever further actions are necessary to stabilise the financial system and to provide further macroeconomic support. At the same time, the G-20 must commit to maintaining open trade and investment, to avoid a retreat to protectionism, and direct necessary additional support to emerging markets and developing countries.

The G-20 should also lay the foundations to move beyond the crisis to a sustainable recovery. In 2009, it will be important to understand the roots of the international financial crisis and identify the lessons that we can learn to ensure that a crisis of this kind does not happen again. The G-20 should develop proposals that will restore global growth in the medium term, including the unwinding of emergency measures taken in response to the crisis.

Coincidentally, with the proposal to bolster the mandate of the IMF, we see this article from the Chinese news agency,
Xinhuanet/China View:

Central bank official: China “will actively consider” buying IMF bonds

www.chinaview.cn Special Report: Global Financial Crisis

BEIJING, March 23 (Xinhua) — China’s central bank said Monday it will “actively consider” buying bonds issued by the International Monetary Fund (IMF).

Hu Xiaolian, vice governor of the People’s Bank of China (PBOC), made the comment during a briefing about President Hu Jintao’s coming visit to the G20 financial summit in Britain, scheduled for April 1 to 2.

“China supports the IMF’s innovative financing attempts, and a more efficient and timely financing mode can effectively ease the IMF’s cash shortage,” said the PBOC’s Hu.

“If the IMF finances itself by issuing bonds, China will actively consider buying” those bonds, Hu stressed.

Of course, the Chinese have already indicated that they are “worried” about U.S. Treasury bonds and a recent China Daily headline reads:  “Allure of US Treasuries Set to Fade”

“Although China is unlikely to massively cut its existing holdings of US Treasuries, it will try to reduce purchases,” said Yu Yongding, president of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences.

The table is set.

I’m sure the G-20 will toast the dollar with fond reminiscences…

MEANWHILE, ahead of the G-20 meeting, China is now holding its 10th China Development Forum (excerpt):

Chinese premier: World should have faith in China

www.chinaview.cn

Special Report: China Development Forum 2009Special Report: Global Financial Crisis

China has launched plans to expand domestic consumption and promote economic growth. It will try its best to achieve the goal of eight-percent economic growth set for this year, according to Wen.

With timely efforts, the economy in some areas and industries in China is now witnessing better signs, Wen said.

“China can’t achieve self-development without rest of the world,” the Premier said, adding that China hopes to deliver confidence to the world and the world should have faith in the country.

SNIP

High-level officials, entrepreneurs, scholars and leaders from international and non-governmental organizations attended this year’s forum with the theme of China’s Development and Reform in the Global Financial Turmoil.

Remember the days when other countries sought “closer ties” to the U.S.? Well, Obama wants a “closer relationship” with China.

When these two meet at the G-20 session, who will be setting the pace?

And lest we forget Putin: he’s doing some saber-rattling…

Russian PM Putin Threatens to Review Relations with EU

SOCHI, March 23 (RIA Novosti) – Russia will start reviewing its relations with the European Union should Moscow’s interests be ignored, Prime Minister Vladimir Putin said on Monday.

SNIP

Russia had been effectively excluded from talks at an international investment conference in Brussels on the modernization of the Ukrainian gas pipeline network, adding that the conference, convened by the European Commission, was limited to discussions between Ukraine and the EU.

“If Russia’s interests are ignored, we will also have to start reviewing the fundamentals of our relations,” Putin said. “We would very much like for things not to reach this point.”

Interesting times, indeed…frightening times.

***

UPDATE March 26, 2009

EXCERPT:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAHStUZFitk8&refer=home

Treasuries Fall on Supply Concern as Seven-Year Sale Looms

By Dakin Campbell and Susanne Walker

March 25 (Bloomberg) —

snip

‘Poor Communication’

The Fed joins central banks in the U.K. and Japan in extraordinary purchases of government debt. U.S. policy makers announced the decision last week to buy $300 billion of government debt in the next six months along with a plan to more than double purchases of housing debt to $1.45 trillion, hoping to reduce rates on home loans.

The dollar fell the most in almost a week against the euro on concern Treasury Secretary Timothy Geithner supported a Chinese plan to blunt demand among global central banks for the U.S. currency. The dollar weakened as much as 1.2 percent to $1.3651 per euro, the biggest intraday decline since March 19, before trading at $1.3601 at 4:20 p.m. in New York.

Geithner later affirmed the dollar’s role as the world’s reserve currency.

“The poor communication from the Treasury department has complicated the market for Treasuries,” said Baker Group’s Caughron.

More

***

ADDITIONAL INFORMATION

China Optimistic about Hu-Obama London Meeting (CRIEnglish.com report 3/23/09)

Official G-20 website

International Monetary Fund (IMF) website

CIS: Overview (from the Commonwealth of Independent States)

THE CIS –Executive Committee website

CIS Wikipedia article

24 Responses

  1. Here’s where things start getting really ugly, really fast. What is important over the next few weeks and months is that we keep our heads and Don’t Panic!

    No matter what the financial world wants to do, this country still has the natural resources and armaments (both military and personal) to maintain our sovereignty if We the People decide to keep it. If we and our Canadian neighbors can keep our cool and watch the game instead of reacting to it, we will come out of this mess just fine. We are the lynchpin for the world to fall into the hands of TPTB, which makes it all the more important to maintain our freedom; the entire world is depending on us!

    No rioting in the streets, no looting or stealing from fellow “poor” folk (we are all considered poor in their eyes unless you have a seven figure income). Our military will not attack the citizenry, nor will they attack other nations unprovoked on the orders of the usurper. It will be tough, it will be nasty, but we will be ok if we stay calm and remember the principles this Republic was founded upon.

    Stay Strong, Stay Free!

    • I hope American Lassie can pick herself up off the floor today….

      • I was thinking the same thought !

      • IA,

        I am recovering with a headache band around my head. Am sick to my stomach, and want to scream it all out and collect my thoughts.

        I am not that surprised, but am shocked that it is happening so soon.

        When China’s minister of foreign affairs was in the United States recently, a luncheon was given for him by the Center for Strategic and Internaitonal Studies (CSIS) and the U.S. – China Business Council. Minister Yang Jiechi was introduced by none other than our old friend Zbigniew Brezezinski, who is a counselar and trustee of CSIS.

        Any time Brezezinski is involved – watch out.

        The topic of discussion was supposed to be about Bilateral U.S. – China relations, but there were also some subtle warnings about devaluing the American dollar by all the financial shenanigans going on. It seems China was worried about the enormous portfolio she is holding of U.S. Securities and real estate.

        American business men were there, of course, schmoozing the Minister. I tried to find the page again, but the one I was reading a couple of weeks ago seems to be gone. Unfortunately I got that flu bug and didn’t follow up or make notes, which I usually do.

        Carla Hills and Henry Kissinger, both members, along with Brezezinski, of The Trilateralist Commission were there, and are also counselars of CSIS,. See how many other adminstrations are suspect in the nefarious plans of TPTB? Both Carla Hills and Kissinger played important parts in other administrations. This darned group is everywhere.

        You’re absolutely right Grail, WE are the lynchpin. We’ve got to stand our ground and fight! There are enough of us who still believe that our forefathers were very wise men and I caution everybody to grab a history book of America (get an old one, the new ones are fiction and fantasy), and bone up on what made this country great. It will inspire you no end. Read Thomas Paine, The Pamphleteer, whose writings inspired so many before and during the Revolutionary War. And above all, take Grail Guardian’s advice and DON’T PANIC! That’s what they want. A bunch of chickens with their heads cut off running around in circles. We need to be like Kenosha Marge’s “Tom Turkey” and chase ’em away.

        Their plan cannot succeed without America, and I strongly believe that the American people are too strong to let it happen.

        Yep, they’ll be after our dollar at the G-20. Let’s hope it doesn’t work, but even if it does, WE WILL SURVIVE!

        To HE## with learning Cinese. Good old English is good enough for me.

    • “Here’s where things start getting really ugly, really fast. What is important over the next few weeks and months is that we keep our heads and Don’t Panic!

      Whenever someone panics, another, “stronger” , “wiser” person takes over.
      In crisis counseling, the person in crisis is guided by the person (therapist, counselor, pastor,etc) who is seen as “stronger” and is perceived as having “the answer”.
      When Rhambo Emanuel said “never let a crisis go to waste” he wasn’t kidding. That is the time to convince the vulnerable to follow the path you want them to follow. I cannot give up my control to the Chinese, the Obots, the Trilateral or Bilderberg groups (and now the CSIS) without a fight.

    • beautiful Grail and right on..

  2. Here comes the Mark of The Beast 666. If Your not familar with it , read the Book of Revelation , the last one in the Bible written over 2,009 years ago. It is predestined and it is coming! I was hoping it would not Be In My generations life time. It was also predicted from coming out of Russia! Its scarey! All the tecnology is in place. Everyone having a number in the wrist and forhead. The Chip. Debit cards and credit cards and scanners have all led up to it. Some Ive talked to welcome this system, easy to use. No more cash is the goal, taxes automatically taken out on every transaction. The fall of the dollar is propagating it.
    Its like a slow take over. Kind of like “If You put a Frog in boiling water, it will jump out, But if You slowly warm up the Frog, it will stay in and get cooked. The “Dollar”
    is being dropped , because its worthless paper, when Nixon took away the Gold standard. So now We print on demand, and the other Countries know Our dollar is worthless . Its Destiny for sure, I didn’t write the book of Revelation, but its been talked about for the last 20 years By Me, and to see it now coming is Scarey! They will say it will stop drug money and crime.
    Already the chip has been used On Dogs and Kids to track them..We will be asked to take the VChip next!
    Sounds unbeleivable? Look around, isn’t whats going on unbeleivable. The dollar is the Only Bubble that hasn’t popped Yet, I m afraid its next!
    MAC /Chicgo

  3. IA, I almost forgot to mention Russia.

    Putin is a different bird than Obama. Putin won’t be pushed around. He has that strong Slavic Spirit that makes the Russian people so able to withstand many a hardship, as the German Nazis found out during WWll. The Russians are survivors, and other than their form of government, I have tremendous respect for Russia. The people of Russia have backbones made of steel or they couldn’t have survived the many repressive forms of leadership that they have had to endure.

    The EU or anybody else had better not get too possessive of the Ukrainian Pipe Line. I don’t feel, as a lot of others do, that the Ukrainians would tolerate a take over of the pipe line by outside countries. If push comes to shove over this issue I believe that that the Ukrainian people will side with Russia.

    I read a book about the Ukraine not long ago. It was fiction based on fact, about a little town in the Ukraine named “Russka”. That was the title of the book, also. I was so impressed about the account of the lives of the Ukrainian people. It reminded me a lot of early America. I was given a new puppy at that time to replace my beloved American Eskimo Spitz that was one of my best friends for 16 years, and this new American Eskimo Spitz reminded me of the indomitable spirit of the Ukrainian people that I named her Russka.

    I’m getting off the track here, but to get back to Putin. I think he will definitely take military action if the other countries persist. He is a very proud and stubborn man, and already leaving him out of the loop as far as the financial discussions are concerned, has offended his honor. Don’t sell this man short. Just watch him as he walks. With every step his body language is telling the world – don’t count me out.

  4. To the poster above signed in as Russia and China calling for international currency. –

    I think you are wrong in saying it is coming out of Russia.

    I have read the Book of Revelations many times, once just recently. My take on this is that the anti-Christ, (I assume this is what you mean when you say “it” is coming from Russia) is expected to come from the regions of Transylvania. Romania, in fact. Many scholars with wiser heads that mine have researched an written about this for years and I’ve never read of one who mentions Russia.

    Tim LaHaye and Jerry B. Jenkins have written a twelve book series of novels that are Christian Fiction based on the Bible. It is Prophecy based fiction that is eerily close to the Book of Revelation. They also, picture the anti-Christ as coming out of Romania. He is pictured as first being President of Romania, then Secretary General of the United Nations, then self-appointed Global Community Potentate. I have read all twelve books and find them extremely fascinating. One part that is eery is that no one know exactly where this man – (iIn the books his name is Nicolai Jetty Carpathia ) – was born or who his parents were. This was written long before the recent primaries, and before I had ever heard of the person who now occupies the White House.

    Many of the things you mention in your post coincide with what is happening today. I’ll grant you enough so that anyone familiar with the prophecies will begin to link these happenings. But so far, I choose to call it coincidence. Yes, the common currency is written about in the Bible. Also the Global aspect of life that could be construed as the New World Order that so many are pushing us toward. This is one reason I so object to the Card issue that the Unions are pushing. I don’t feel that a vote is actually a true vote if it is not done in private.

    And yes, there are chips implanted in animals for identification purposes, but I would never let a pet of mine be so marked.

    No matter what our belief, we’ve got to keep fighting the enemy whomever he or she is. You must stand up for what you believe in.

  5. I’m late, I’m late, I’m late for a very important date…I am so far behind on so much. I have been all over this morning and watching Cspan to cover 1388/3577/277 and am finding all these articles covering all the freakin’ foundations and institutions that I have been working on for 3 weeks.

    Okay – no panic here. Bought my gun yesterday, laying in my food this week, and starting the garden. Am ready.

  6. Im referring to the Currency when I said it is coming. The Russians and Chinese are pressing for a New currency. This is the beginning of the evolving New World order, refered to in The book of revelation. I read the Kiplinger report on tax today also that Obama has pasted new laws coming soon for debit cards and credit cards balances be reported to the IRS, along with Service companies working for Private and public. Such as Plumbers, Painters, heat and air ect…I wasn’t an Obama backer and soon We will, all understand why not. It is like the stove being turned up slowly on Us, and We are the water on the stove…its a slow boil..but boiling it will Be.

  7. Here’s something to read from the Washington Note

    Bernard Schwartz, Laura Tyson, Martin Wolf, George Soros Mark Zandi and Others to Headline Major NAF Economic Policy Forum on London G-20 Meeting and What Will Replace US Consumer

    http://www.thewashingtonnote.com/archives/2009/03/george_soros_be/

    An upcoming conference will be STREAMED LIVE at the WN site…

    Excerpt from this post…above URL)

    The first “Bernard L. Schwartz Economic Policy Symposium” will take place in Washington at the New America Foundation offices on Thursday, 26 March 2009. Attendance information is here.

    Financier and former Loral CEO Bernard Schwartz has been trying to push the administration and Congress to realize that there are different kinds of deficits the nation has to struggle with — and the most important in his mind is leaving an “infrastruture deficit” to the next generation. He will be helping to open this important conference.

    snip

    I will be moderating the meeting along with my colleague Sherle Schwenninger and New America Foundation President and New Yorker staff writer Steve Coll.

    Bernard Schwartz. . .George Soros. . .Laura Tyson. . .Martin Wolf. . .Clyde Prestowitz. . .Desmond Lachman. . .Tom Gallagher. . .Steve Coll. . .Mark Zandi. . .William Gerrity. . .Leo Hindery. . .Richard Vague. . .Nicholas Lardy. . .Jeff Madrick. . .Sherle Schwenninger. . .and others make up quite a line up for a great meeting.

    snip

    This entire conference will STREAM LIVE on this blog, The Washington Note between approximately 8:30 am and 1:00 pm EST on Thursday, 26 March 2009.

    If you would like to attend, RSVP information is here.

    The purpose we have in organizing this meeting is to try and position some of the key issues that should be considered at the London G-20 meeting and to begin to emphasize that the fumbling on economic policy needs to stop.

    It’s time to begin organizing a Team B economic policy effort — even if it is organized by a network of concerned civil society leaders.

    ***///***

    Doesn’t it all make you feel better? (SNARK)

  8. Sorry, not if George Soros is involved. I think he is a very dangerous man.

    Do you think this could be a tip that TPTB are getting ready to scuttle TEH ONE?

    • BTW, didn’t Obama say a lot of that first “Stimulus Money” was to go to repairing and rebuilding the infrastructure? Perhaps Bernard Schwartz, (mentioned above in IA’s post) should ask Teh One “Wha happen? he’s got some “splainin to do.

      At last count I don’t recall Wall Street Bankers being part of the infrastructure.

  9. Lee M…I was being sarcastic (clarified now)… Soros and Laura Tyson…Sherie from The New America Foundation… quite a brew…I don’t know a lot of the names….A big shot from Loral…

  10. I think we need to leave Revelation out of politics — one theory is that the author of Revelation was high on drugs. Whatever . . . .

    The major problem is that 0bambam isn’t a leader and he doesn’t have a clue about the US economy. He does know how to wheel and deal — Chicago style. But he doesn’t have a clue about International economics.

    At this point don’t you all think that the world leaders KNOW that 0bambam is clueless and dumber than a sack of hammers. My bet is that all the major nations have had their spy/shrinks do a personality profile on 0bambam — and more than likely they are coming to the same conclusion that we did over a year ago. 0bambam is WAY over his head.

    Let’s see — the Islamic Nations are trying to push Sharia finances on the west — and China wants a new World Currency — and which of these powers has enough black mail information on 0bambam to win the balance of power?

    We are so screwed.

  11. I can understand why some might think the writer of Revelation was on Drugs, after reading it several time over the years one must have a real sense of wanting to know the truth.
    Not all will get it, as they read it, with out that open mind.Its a magical truth, only interpreted with the right attitude while reading. Trust Me, I don’t understand it all. However if You have read it, You will see the 13 Nations making up The Euro was predicted, and following that at some point is The One World Currency, that O’Mama!! was asked about , that He sluffed off quickly…Its not a matter of if….its a matter of when….we have a One world currency…..Its all about the currency…or The dollar
    when You stop and think about it…
    To get off that for a moment , I believe it was oil that cost 140 a barrel that really put US(Me) into a tailspin, It seems to be forgotten. Its interesting that oil is now 50 but gas is 2 bucks, that doesn’t reflect 50 a barrel oil that reflects 70 a barrel oil right? An next is going to be a tax on Gasoline, in Illinois We already pay 60 cents a gal tax and Obama wants to add 50 cents more, and also tack a new tax on electric and Natural Gas…I guess thats what You call Tax
    cuts for the middle class! Thanks for Your time.
    Mark/Chicago

    • While I can understand the connections you draw, I think NWRain’s point is that when we bring religion into politics it doesn’t end well at all. To wit: the Christian Right basically destroyed the Republican party and consequently the country, and of course there is the whole Islamic issue (which I will not get into here because it’s GRL’s site).

      The Founders carefully set things up to have a separation of Church and State, and they were wise to do so. I agree that we should be equally as vigilant and keep our spirituality out of Washington.

      • Thanks, Grail…we don’t want to go any further into this religious angle.

        There are plenty of sites with that approach all over the place…

    • Not to mention the increase in personal income tax, (50% for individuals) and the increase in property tax as well. (I guess Blago was right about the plan to raise the income tax.)
      I’m thinking of moving into the subsidized housing that Rezko owns. When not in prison, he resides in the former family home of a friend of mine. Maybe I could talk with his wife and have her arrange some favor for me – just like he did for Teh One.

  12. Caught this…

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aAHStUZFitk8&refer=home

    Treasuries Fall on Supply Concern as Seven-Year Sale Looms

    By Dakin Campbell and Susanne Walker

    March 25 (Bloomberg) —

    Excerpt:–

    ‘Poor Communication’

    The Fed joins central banks in the U.K. and Japan in extraordinary purchases of government debt. U.S. policy makers announced the decision last week to buy $300 billion of government debt in the next six months along with a plan to more than double purchases of housing debt to $1.45 trillion, hoping to reduce rates on home loans.

    The dollar fell the most in almost a week against the euro on concern Treasury Secretary Timothy Geithner supported a Chinese plan to blunt demand among global central banks for the U.S. currency. The dollar weakened as much as 1.2 percent to $1.3651 per euro, the biggest intraday decline since March 19, before trading at $1.3601 at 4:20 p.m. in New York.

    Geithner later affirmed the dollar’s role as the world’s reserve currency.

    “The poor communication from the Treasury department has complicated the market for Treasuries,” said Baker Group’s Caughron.

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