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New world currency to replace the US dollar?

9/08/2009 | Posted by mesiamd | Edit Post

Yes! This is the proposal being pushed by the United Nations to revamp the world’s monetary system. Officials of the UN Conference on Trade and Development (UNCTAD said the money arrangement right now is not working well and there is a need for change to help correct the worldwide financial downturn.

The proposal comes at a time with China, worried about USA’s increased printing of cash has suggested with Russia that the US dollar, the current global currency must be replaced to avoid inflation.

"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." ----Telegraph.co.uk (09/0007/09, Conway, Edmund)

As predicted by economists, hyperinflation is a risk for the United States as the Obama Administration tries to implement its plan of excessive spending. Worrying the public of the present money crunch, the US budget deficit has worsened and risig fast. With Obama's watch, the US economy is expected to saddle a staggering 9 trillion deficit in the next 10 years putting a huge burden to taxpayers.

In the recent poll of the a Geneva-based World Economic Forum, the US dropped down only second to Switzerland as the most competitive economy in a poll conducted to greater than 10,000 business leaders. Singapore and Sweden came third and fourth respectively. (Photo Credit: =0=

Yes! This is the proposal being pushed by the United Nations to revamp the world’s monetary system. Officials of the UN Conference on Trade and Development (UNCTAD said the money arrangement right now is not working well and there is a need for change to help correct the worldwide financial downturn.

The proposal comes at a time with China, worried about USA’s increased printing of cash to buy bonds has suggested with Russia that the US dollar, the current global currency must be replaced to avoid inflation.

"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." ----Telegraph.co.uk (09/0007/09, Conway, Edmund)

As predicted by economists, hyperinflation is a risk for the United States as the Obama Administration tries to implement its plan of excessive spending. Worrying the public of the present monetary plans, the US budget deficit has further jumped and is expected to reach 9 trillion in the next 10 years.

In the recent poll of the Geneva-based World Economic Forum, the US dropped down second to Switzerland as the most competitive economy in a poll conducted to greater than 10,000 business leaders. Singapore and Sweden came third and fourth respectively. (Photo Credit: AP; Mary Altffer) =0=

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Labels: budget, business, currency, deficit, money, Totie Mesia, trillion dollars, UNCTAD, United Nations

US Debt: runaway spending in Obama’s ambitious recovery plan worries Americans

6/01/2009 | Posted by mesiamd | Edit Post

“President Obama's ambitious plans to cut middle-class taxes, overhaul health care and expand access to college would require massive borrowing over the next decade, leaving the nation mired far deeper in debt than the White House previously estimated...

Tax collections, meanwhile, would lag well behind spending, producing huge annual budget deficits that would force the nation to borrow nearly $9.3 trillion over the next decade -- $2.3 trillion more than the president predicted when he unveiled his budget request just one month ago.” ----Washington Post (05/21/09, Montgomery, L)

To give the public a picture of what is to come, among high-profile company failures, on Monday, June 1, 2009, General Motors (GM,) the world’s largest automaker is poised to file bankruptcy (Chapter 11) in a US court in spite of the earlier bail-out extended by the government.

By placing the governmment stakes on the faltering giant car manufacturing company, the Obama administration is putting huge burden on the tax-payers. There are $20 billion dollars in federal assistance so far given by the Treasury in exchange for about 60% controlling stakes of the company. In addition to the $20 billion dollars, Obama plans to tell the Americans that an additional $30 billion is needed to see GM go through bankruptcy reorganization.

American taxpayers don't know if their money is being used wisely by their leaders. No one knows how the automaker can bring back the business to its old glory. Customers are uncertain, worried, and mad---something that corporate America haven't seen before. There will be more than 1,000 dealerships and plants that will be closed. About 20,000 workers in the car industry will be laid off as a result of the bankruptcy.

According to the U.S. National Debt Clock, the outstanding outstanding public debt as of June 1, 2009 is: $ 11,323,565,316,132.15. With the estimated population of the United States to be 306,284,942, each citizen's debt burden is pegged at about $36,970.69. How can Americans pay these?

The average US citizen may not fully realize that excessive borrowing and spending will likely mortgage the future of the children of the next generation. As cautious citizens have warned, the richest nation on earth may end up dirt poor earlier than predicted. The alarm is met with avoidance and silent dread by those who hear about it, especially those who think that Obama is the answer to their money problems..(Photo credit: Debtfree:Danilov) =0

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Labels: bailout, bankruptcy, Barack Obama, budget, economy, General Motors, GM, money, national economic planners, Totie Mesia, trillion dollars, US debt

The Coming Crisis of 2009: Some Thoughts (Part 1)

1/02/2009 | Posted by myty555 | Edit Post

I do not know if my title is passe, that is, should it be termed as the crisis of 2008? Anyway, what the Philippines is experiencing so far is an economic downturn. There is no full crisis yet. But like the rest of the world Filipinos are worried about the spill-over effect of the US crisis.

Will there be a full-blown crisis? I don't know either. Nobody has a perfect crystal ball on this crisis. One thing, there is no denial complex like in the other crises so looking for solutions came earlier. And the host country of the crisis can possibly marshall up to a trillion dollars of intervention fund to soften the blow. And the world, tickled properly, will probably respond to multilateral efforts in order to stave off a greater conflagration.

How do the Philippines stand in this crisis? Firstly, electronics parts imports have dived indicating that this sector of the economy won't be a good performer this year. But that sector is no longer the country's biggest sector. The biggest is now the OFW market and this sector is not dependent directly or indirectly in the US since it caters mainly to the Middle East and this region doesn't produce a lot of goods and services for the US and other highly-industrialized countries (HICs).

A major sector, the natural-resources extraction sector including metals is primarily China-driven now. Will this suffer? Actually it will depend on how China handles this crisis since their number one market is the US. But being the cost and price leader worldwide they still have plenty of option regions. But of course these regions economic size and purchasing power cannot match the US'.

Our agri-business sector can probably ride out the storm since more and more it is not dependent on the US market. Instead it relies more on Japan and increasingly the Korea, China, Hongkong and other markets are being developed.

Meanwhile, our traditional agriculture market, though still big had become more of a non-factor in the last few years. Our coconut, abaca, tobacco markets is no longer that important while we are importers in our other agriculture needs like cereals.

An emerging BPO sector, which include call centers probably ranks second in importance now. This sector is putting up a brave face but its primary market is the US. Will enough US firms cut cost and outsource abroad so that previous demand cuts here will be negated? I cannot speculate on this since this is a US response area.

I point all of this out since I do not want to say that this impending crisis will just be a replay of the 2001 crisis spawned by the 9/11 NYTC attack. The world changes fast and underlying dynamics do change.

[photo credit:bigapple212]

Labels: 2008 crisis, 2009 crisis, 9/11, agri-business, BPO, call centers, denial complex, electronics parts imports, HIC, Middle East, natural resources extraction sector, OFW market, trillion dollars

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New world currency to replace the US dollar?

US Debt: runaway spending in Obama’s ambitious recovery plan worries Americans

The Coming Crisis of 2009: Some Thoughts (Part 1)

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