Phase Three Of The Currency Wars?

Uncle Tad

We have been asking a simple question for awhile now about the signs of a currency war that may be taking place behind the scenes, yet in our face.

The knee-jerk reaction from some media pundit economists to all of this heretofore has been to brush it off as some kind of "conspiracy theory".

That is the folder where that type of media pundit puts everything it can't seem to emotionally or intellectually handle these days.

In this case, as the linked stories above point out, this idea fostered by China and other competing nations, has now made its way to the UN:

The dollar’s role in international trade should be reduced by establishing a new currency to protect emerging markets from the “confidence game” of financial speculation, the United Nations said.

UN countries should agree on the creation of a global reserve bank to issue the currency and to monitor the national exchange rates of its members, the Geneva-based UN Conference on Trade and Development said today in a report.

China, India, Brazil and Russia this year called for a replacement to the dollar as the main reserve currency ...

(Bloomberg)[Bloomberg "lost" the page, no Way Back machine copy, so here, here, here, and here are other mentions of it]. Those nations comprise more than half of the world's population, so the pundit poo-pooing of this is brain dead.

The UN was branded as useless and treated like a stepchild by the Bush II regime so our reputation went down into the mouldy cellar during those invasion years.

Then came the Bush II economic disasters which put the icing on the toxic cake the bushies had cooked up.

There is little wonder that the world is reacting this way, and it is past high time for major diplomacy to assure the world we intend to correct the right wing's egregious behaviour flouted as enlightenment during the Bush II darkness.