In March of 2009 the People’s Bank of China Governor Zhou Xiaochuan called for a reform of the international monetary system. Among the initiatives called for by Zhou was the creation of an international reserve currency which would be disconnected from any individual nations currency, and would remain stable by removing the deficiencies inherit in using credit based national currencies.
Update: Jay over at Jay’s Analysis has expanded on the idea formulated here in a way that only he could. For those seeking a deeper understanding of this concept, and much more, I would seriously suggest reading his post titled Plato, Crystals, Dimensions and Artificial Intelligence. It may remind some readers of our comparison between prisms and the force we reference as Lucifer, with Lucifer representing “knowledge corrupted” in the material world. – JC
“The G20 must be at the forefront in helping to address key global economic challenges. Global economic institutions need to be effective and representative, and to reflect the changing world economy. We welcome the increased representation of emerging economies on the FSB and other actions to maintain its effectiveness. We are committed to maintaining a strong, quota-based and adequately resourced International Monetary Fund (IMF). We reaffirm our commitment in St Petersburg and in this light we are deeply disappointed with the continued delay in progressing the IMF quota and governance reforms agreed in 2010 and the 15th General Review of Quotas, including a new quota formula. The implementation of the 2010 reforms remains our highest priority for the IMF and we urge the United States to ratify them. If this does not happen by year-end, we ask the IMF to build on its existing work and stand ready with options for next steps.”
Last night I had a dream that I was a cell in a spreadsheet. My task was to find a way to transition from one side of the sheet to the other. The method I had to utilize to achieve this goal was to develop a relationship with the cell next to me and one at a time make my way across the sheet to the other side. But with each movement I had to ensure that the relationship, or formula, in each previous cell was maintained.
“It is important that the Brisbane G20 Summit on Nov. 15–16 is a success. In an increasingly integrated global economy, effective forums for economic cooperation are needed.” – From the CFR Memo
On the eve of congressional elections in the United States it’s time to take stock of where we are and what we can expect as we move further into winter and the end of the year. Over the last 4 to 6 years the seeds of the Multilateral Financial System have been planted and it is now time to begin harvesting what has been grown.