Goodbye Dollar, hello… Bancor???
First the Wocu and now this? According to this article from seeking alpha, the IMF’s Strategy, Policy and Review Department have been quite busy and now have the blueprint for a complete overhaul of the International Monetary System.
The paper was not meant as a compilation of proposals but rather a discussion of the system's imperfections and whatever possibles routes they could take to correct them. Their best solution: the adoption of a single world currency, named the “Bancor” after the hypothetical world currency unit suggested by John Maynard Keynes.
It might not be so hypothetical however, as:
“This is a very serious proposal in an official document from one of the mega-powerful institutions that is actually running the world economy. Anyone who follows the IMF knows that what the IMF wants, the IMF usually gets.”
This isn’t the first time the IMF tried this; their last attempt at replacing the Dollar was with the creation of Special Drawing Rights, or SDR’s in 1969. These are synthetic baskets of currencies comprised of the U.S. Dollar, the Euro, the Japanese Yen, and the British Pound specially created to be the primary reserve under the Bretton Woods system. Together with the system’s collapse however, SDR’s became overshadowed by the Dollar again and fell into obsolescence. Though still in circulation, its use has been considered to be quite limited with it being a “quasi-currency”, thus precipitating the IMF’s new plan.
Believing that sovereigns cannot be trusted to control reserves and deficits, the IMF proposes that the Bancor- governed by a Global Central Bank loosely based on the Fed, be adopted by the whole world as its common currency, thus ensuring the stability of the international monetary system.
Its biggest proponents? The Chinese central bank governor and a few people in the ECB.
Now I’m no expert, but am I alone in thinking that this shouldn’t/won’t happen? Sure, the IMF may have some pull but we’ve all seen what happened to Europe with the Euro and do they seriously expect the U.S. to give up its sovereignty? That’s not going to happen. Not to mention questions of a world government which might stem from this.
What do you guys think?
Consiparcy theorists will be very excited about this
Not to be blunt, but I am extremely skeptical anything like this would ever happen.
Look at the Euro -- the only real major attempt to have a monetary union without a fiscal union is not exactly a measuring stick for success. With the way that individual country debt can harm an entire system (Greece, possibly Spain), I just don't see how this could ever exist on a global level.
Americans hate unionizing
they hate it
A single currency needs a singular political and monetary system. They are just replicating the whole "too big to fail" concept the banks tried late during the crisis. But this simply is not possible on this scale unless they shove a single gov't down everyone's throat.
So yes... tin foil club is about to have a meeintg. All aboard!!!!
America wont let that happen... thats like letting oil be traded in euros, not happening. The US is the middle man of trades in the world.(reason why the dollar is used so widely around the world to those who can't put 2+2). Wait arent we the head of the IMF?
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