Nicholas Sarkozy could be the end of Forex

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.

"Gold" because it does not decay, can not be destroyed by acid, never loses its shine and can be molded again and again and again ... It is rare but found in many places and valuable for all people in the world ... I think it's quite useless to discuss about why gold should be a valuable commodity.

Yes, we could expect a rebellion if solely the government would want it - who will do the rebellion if it is the people who want it? People would want it, if there are enough critical situations i.e. crisis. It is not difficult to create crisis that would put people in shock. The stronger the shock the easier it is to impose new rules and orders.

Just wait and see what the next shocks might be. We can just ponder a little and meanwhile study the principles of Hegelian despotism.

Einstein once said: "If at first an idea does not sound absurd, then there is no hope for it".

Gordon Brown called for a new world order again this Monday saying that a new global society is now needed in such times of an international financial crisis. He has been saying this since he got in power though.

I can't remember reading anything in the article that said trading or speculation would be banned. It was saying that less power should be granted to these speculators and the markets need to be more tightly regulated..................

Is this the same Gordon who was taking all the credit for the good times in the UK, then quick to blame it on "global" issues as soon as it turned sour?

Gordon: saviour of the world. Tomorrow: saviour of the universe!

As long as he and the French poodle leave us innocent speculators alone, they can huff and puff all the hot air they like...

Nov. 13 (Bloomberg) -- President George W. Bush today will urge leaders of the world's biggest industrial and developing economies not to abandon principles of free-market capitalism as they seek a way out of an international financial crisis, calling it the ``best system'' for delivering growth.

http://news.bbc.co.uk/2/hi/in_depth/7724298.stm

http://www.forbes.com/afxnewslimited...fx5688382.html

amazin how times have changed

All the govt officials have to sound tough against the big bad US to seem to be doing something. Remember that business runs the world not governments and business wants forex trading. We will never go to the gold standard (sorry Ron Paul). this crisis is just being and in the long run everyone knows it will be the US, once again, that will be the only power to pull us out of it. Let me add that the world has been caught up with Obama and "fairness". Let's make everything fair for everyone and have no risk. Fairness is the death of capitalism.

I think President Bush's speach today puts to rest any notion of a world currency (other than the dollar), and positions the US firmly against too much new regulation of the financial system. I have been looking at the financial advisors that President-elect Obama has put in place, and it is pretty obvious that he is going to resist these European efforts, too.

Let's face it, the Europeans are being a little opportunistic now. I think if they could get the people of Europe to agree to a single constitution of Europe (read that to set aside their own national interests for the sake of a politically unified Europe), they would carry more credibility into the upcoming G20 meeting.

As for a gold standard, give it up already. No chance it will, or should, ever happen. I could go on for hours about how crazy that idea is in a modern, globalized world, and how a single nuclear bomb could destroy the gold standard, but I do not have the time and most would not really be interested.

http://www.independent.co.uk/opinion...s-1017815.html

It's easy to talk of a new Bretton Woods, but that agreement, it should be remembered, was born in 1944 out of the devastation of the Second World War and the emergence of a US that was richer and more powerful economically than virtually the rest of the world put together. The international community, victors and defeated alike, was desperate for a way to the future and Washington had both the resources and the leadership to guide them there. A system of fixed exchange rates was established as a framework for international capital flows and the IMF and World Bank set up to channel aid and support struggling economies.
None of that applies today. Fixed exchange rates collapsed 30 years ago and would be almost impossible to re-institute today, even if the dollar were still the undisputed currency of the world. America, which has been the source of so many of the financial woes that have beset virtually every other country, has neither the authority nor the funds to institute a new world order.

We've never cared what the French thought before.. why start now?

Has someone heard about the rumor of exchanging the world reserve currency for water? So gold does not decay, and cannot be destroyed, water transforms tho. Can you imagine it?

it is not just Sarkozy's idea baby, right now. I see the think in this way:

Think that all the Eurozone governments have their reserves in dollars, and if the dollar decreases its value, the whole eurozone will be damaged too. Europe is tired of depending on the US financial agenda...gotta keep an eye on that!

Because now their President is a CIA asset.

Nov. 13 (Bloomberg) -- Al-Qaeda leader Osama bin Laden is alive and ``largely isolated,'' said CIA Director Michael Hayden, who added that U.S. intelligence had disrupted a terrorist attack that ``would have rivaled the destruction of 9/11.''

If the attack was a success, "that's it" for the stock market

http://online.wsj.com/article/SB1226...googlenews_wsj

If we are to "build together the capitalism of the future," as Mr. Sarkozy puts it, the world needs sound money. Does that mean going back to a gold standard, or gold-based international monetary system? Perhaps so; it's hard to imagine a more universally accepted standard of value.
Gold has occupied a primary place in the world's monetary history and continues to be widely held as a reserve asset. The central banks of the G-20 nations hold two-thirds of official world gold reserves; include the gold reserves of the International Monetary Fund, the European Central Bank and the Bank for International Settlements, and the figure goes to nearly 80%, representing about 15% of all the gold ever mined.
Ironically, it was French President Charles de Gaulle who best made the case in the 1960s. Worried that the U.S. would be tempted to abuse its role as key currency issuer by exporting domestic inflation, he called for the return to a classical international gold standard. "Gold," he observed, "has no nationality."
Mr. Sarkozy might build on that legacy if he can look beyond the immediacy of the crisis and work toward a future global economy based on monetary integrity. This would indeed help to restore the values of democratic capitalism. And Mr. Volcker, an influential adviser to President-elect Barack Obama, could turn out to be a powerful ally in the pursuit of a new stable monetary order.

http://www.csmonitor.com/2008/1115/p09s01-coop.html

Another one who needs shooting

I guess the upcoming G-20 meeting will discuss it as a way out for the crisis. Hopefully they agree something that pushes the economy.