Sarkozy Pushes for Abandonment of Dollar as World Reserve Currency

[Joe Valentine]

The source is from a blog so I can't link to it but here's the story:


Sarkozy Pushes for Abandonment of Dollar as World Reserve Currency

George Washington’s Blog
Thursday, November 13, 2008

French President Nicolas Sarkozy said on Thursday ahead of the G20 meeting of world leaders:

“I am leaving tomorrow for Washington to explain that the dollar cannot claim to be the only currency in the world…, that what was true in 1945 can no longer be true today”.

There have been many previous indications that the dollar would not remain the world’s reserve currency for long. But this is a dramatic statement by a close American ally.

Reading between the lines, I am guessing that Sarkozy is pushing for a shift from the dollar to a basket of currencies as a world reserve standard, instead of a change to a single currency such as the Euro or the Yuan.

But we’ll have to wait and see what Sarkozy is really advocating.


Some major global economic reform really is about to happen... :ohno

[Joe Valentine]

From a financial standpoint, he makes a sound argument however. The $US will be close to 11 Trillion - $11,000,000,000,000 - in debt come next year. Right now we're at close to $10.3 trillion dollars in debt. The US dollar is so grossly weak that it is in fact a problem to the entire rest of the world. The immediate impact of switching to the Euro (the only real legitimate currency to trade on a global basis) would be the price of oil. Imports/Exports would still be a serious issue in America and there's still the looming issue of the debt which the incoming administration has to address. Right now the United States is spending almost $500 billion a year in intrest payments on that debt alone. That means the first $500 billion they collect in taxes goes to pay the minimum payment. Eventually the debt minimum will be so overbearing that the US will have to default and then the US dollar will officially be in the toilet.

The rest of the world is trying to move away from that now seeing that the current rate of debt being acquired by the US Government, soaring social security and medicare costs and the high cost of social programs will have an ugly collision somewhere around 2015-2018. If the US dollar is the lone reserve currency and it collapses, every other country in the world that has ties to the US Dollar would collapse with it.

Other than for the United States, this isn't a bad thing.

I agree with you this is the USA's own fault, we're being destroyed from the inside, our leaders and our banking elite are selling us out. We're going to have a much more globalized economy now however which I would say is a bad trend for any country that values freedom and economic independance, and values their national sovereignty. A shift to the Euro as the world reserve currency would be bad, a shift to a "basket of currencies" as suggested in the article would be worse, the creation of a global currency would be the very worst.

[sherrimae]

The problem is that if we give Congress any more money they will just waste it like they always do. Obama has big plans to create more new programs to waste more tax dollars on.

[farmia]

I agree with you sherrimae. The more money congress gets its hands on the more it wastes.

[Year29]

But we’ll have to wait and see what Sarkozy is really advocating.

Don't know about you but I am keeping an eye on this guy. (enough said)

[hebron]

Don't know about you but I am keeping an eye on this guy. (enough said)

I read his name means

HIS NAME MEANS:

NICOLAS = CONQURER OF THE PEOPLE

SARKOZY = PRINCE OF (MY) TRIBULATION

Strange, don't you think? I don't for a minute think this man is the a/c but maybe someone who is definately leading us up to the time that he will arrive on the scene.

[jgreen0227]

you guys have the link to this article?

[lovinlife4]

Don't know about you but I am keeping an eye on this guy. (enough said)

YEP, me too.

[hebron]

you guys have the link to this article?
I've PM'd you the link

[MovinUp]

Hi all, the news article (one of them) can be found here:
http://www.rr-bb.com/showthread.php?t=68065

also related:
http://www.monstersandcritics.com/news/europe/news/article_1442856.php/EU_Russia_to_%26quotspeak_same_language%26quot_at_ G20_Medvedev_says__1st_Lead__

On Friday, the Russian leader is set to hold talks in Nice, France, with French President Nicolas Sarkozy, current holder of the EU's rotating presidency. The Washington summit on the financial crisis is expected to be high on the agenda.
And Medvedev said that his government had worked out an eight- point plan to present to world leaders as Russia's contribution to global financial reform.

Russia intends to pass laws by the end of the year to lay the foundations for a global financial centre in the country, and would like to see its currency, the ruble, develop as a global currency, he said.