Get Ready for a Global Currency

When economists like Joseph Stiglitz start talking to mainstream media journalists about the need to replace the dollar, you know it’s already in the can.

Sad to say, I don’t have a natal chart for the dollar. I do have one for the euro, though. It’s in this post of last May.

One comment on “Get Ready for a Global Currency

  1. World currency – born as a result of a crisis? Will not survive the “first 6 months”.

    What’s at stake right now, in my tropical perspective, are 3 main concerns:

    1) China is truly worried about where to put its excess reserves. They would put the money at use domestically, but the present regime could not stem the resulting tide of sudden capitalism and corruption ensuing. According to Amnesty International, of the 22’000 or so executions last year in the world, more than 2/3 occurred in China. That explains what I just said. The leadership there has a “special problem” indeed.

    2) The Western world, lead by its habitual “boss”, the USA, is in a worrisome situation. One must include Japan in this Western World, as well as the Middle East. Its the great consuming world, depending on oil, the US Military and at present Chinese surplus funds to live as we all still comfortably live. Unfortunately something now went wrong in this happy arrangement. (We astrologers suspect its Pluto having entered Capricorn plus a few stressful transits like the Saturn/Uranus opposition).

    3) Technology: Much of the world’s organizations, political, economical, social, religious have not been able to come to grips with the fact of being literally overrun by technology. To simplify I will just drop some items of concern to various of the entities mentioned:

    Pollution (and the costs involved). Financial regulation. Today its all transnational and the loopholes are many. Ask Madoff or the Stanfords or the hedge fund managers (not suggesting the latter are crooks). Commodity speculation, including oil and real estate (or its derivatives). Medicine (the pill, the pill of the day after, genetic engineering) and abuses in the food industries.

    As long as the world – machine was advancing (without “exuberant excesses” but also not putting an increasing number of people on the dole), we could cope, as always. But now?

    Nobody for sure knows how to fix today’s financial problem. To look at the depression of the 30’s and what went wrong then, can possibly be helpful to solve todays problems. But its not guaranteed at all. The world is never the same. The similarities can only be acertained with hindsight. And then its probably not very useful anymore, because too late.So its become a question of believing/hoping Bernanke/Geithner/Obama got it right.

    As far as the “New World Currency” is concerned, the best we will get out of the G 20 is a strong type of statement that the US Dollar (and its “nasty imperialistic type of side-effects”) has to come under control.

    Only later will be decided who will actually control. The UN? or the IMF?
    Some other bunch of bureaucrats?

    To extend the role of the special drawing rights goes exactly in that direction. More bureaucracy. And the Chinese know it. That’s why we hear repeatedly that instead of buying US Treasury bonds the Chinese now prefer to stockpile copper (cheap to store, does not even rust), they also talk of the “price of gold staying high for the foreseeable future”, enter multi-billion gas contracts with Iran, Somalia. Soon with Iraq, as Cheney now is out of the way(?)

    Ever thought why the Australians stick so closely to the US and always are helping out? They sit on a pile of natural resources the Chinese one day may want to get hold off!

    I hope (but have little faith) that even with the considered thoughts of Dr. Stiglitz, a rapid solution towards a new world currency can be found. But that the turmoil will continue for a while stands for certain. As Obama says: this crisis is an opportunity! Will see…

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