View from The Ships Crow's Nest >>>>>

New IMF Strategy Document Charts Launch Of “Bancor” Global Currency: Economy / Currency; Highlights “potential resistance” on road from “voluntary multilateral framework” to full blown global currency Steve ... : "Steve Watson Prisonplanet.com Wednesday, Aug 4th, 2010 A chart within the document, innocuously titled " Reserve Accumulation and International Monetary Stability  " (PDF link), presents a stepping stone system toward a fully fledged global currency: A newly published IMF strategy document calls for the implementation of a global currency, called the “bancor”, to stabilise the international monetary system, while acknowledging that only a monumental shift toward acceptance of globalism will make it possible in the short term..."

FT.com / Comment / Opinion - A golden opportunity for monetary reform : "A golden opportunity for monetary reform By Robert Skidelsky  November 9 2010 22:20 | Last updated: November 9 2010 22:20 Three cheers for Robert Zoellick. Writing in the FT this week, the World Bank president set out an ambitious agenda for the Group of 20 leading economies to “rebalance demand” and “spur growth”. He recognises that the reduction of current account imbalances is a necessary condition for a non-protectionist trading system... This was addressed by Keynes’s proposal for capital controls (to guard against capital flight) and, more imaginatively, to create a new international reserve asset that he called “bancor” (short for “bank money”), which would replace gold as the ultimate reserve asset of the system. Gold would remain as a reference point for the value of bancor, thus limiting the capacity of the ICB to create credit – which seems similar to Mr Zoellick’s idea. Keynes’s famous descr...

comments by Jesse's Cross Roads Cafe Anglo-American financiers to the Rest of World: We've a Gun to Our Heads, Better Surrender. "To put it crudely, the US wants to inflate the rest of the world, while the latter is trying to deflate the US. The US must win, since it has infinite ammunition: there is no limit to the dollars the Federal Reserve can create. What needs to be discussed is the terms of the world’s surrender: the needed changes in nominal exchange rates and domestic policies around the world." Destroy the world economy by trashing the global reserve currency? Yes we can. I hate to make light of this because it does offer a useful vignette of the deployment of opposing lines and basic strategies in the currency war, at least from one perspective. Several years ago I forecast that the Bankers would make the world an 'offer they cannot refuse,' or at least that the Bankers think that they cannot refuse. Hank Paulson made such an offer to the US Co...