http://www.chinastakes.com/story.aspx?id=816
The Europeans are now pushing for a drastic reform of the entire global financial system. Some are even pushing for the replacement of the US dollar as the world's main reserve currency. Others are primarily aiming at better regulation of the existing system and supervision of financial institutions with global reach. Efforts to create a new reserve currency (Bretton Woods II), are unlikely to be successful, if only because the US is not interested and without US agreement, little can be done. The US has de-facto veto power over any new global financial system, because it can decline to guarantee an exchange rate between the vast amount of US dollar denominated financial liabilities already in circulation around the world and whatever new reserve currency is agreed on by the rest of the world (e.g. a basket of currencies, a synthetic currency linked to a basket of commodities, SDRs or something similar). A return to the pre-1971 gold standard is not feasible.
The Europeans are now pushing for a drastic reform of the entire global financial system. Some are even pushing for the replacement of the US dollar as the world's main reserve currency. Others are primarily aiming at better regulation of the existing system and supervision of financial institutions with global reach. Efforts to create a new reserve currency (Bretton Woods II), are unlikely to be successful, if only because the US is not interested and without US agreement, little can be done. The US has de-facto veto power over any new global financial system, because it can decline to guarantee an exchange rate between the vast amount of US dollar denominated financial liabilities already in circulation around the world and whatever new reserve currency is agreed on by the rest of the world (e.g. a basket of currencies, a synthetic currency linked to a basket of commodities, SDRs or something similar). A return to the pre-1971 gold standard is not feasible.