World could dump US dollar and opt for shared currency

 Corporate agenda, Economy, United States  10 Responses »
Mar 232009
 

The days of the US dollar as the global reserve currency seem to be numbered. For some time now, independent commentators have been saying that the US dollar is on shaky ground – or could even collapse altogether.

But when a UN panel recommends that the world should ditch the dollar in favour of a basket of shared currencies and the mainstream business press like Reuters takes it seriously, you got to sit up and take notice:

U.N. panel says world should ditch dollar
Wed Mar 18, 2009

By Jeremy Gaunt, European Investment Correspondent

LUXEMBOURG (Reuters) – A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.

Continue reading »

Alarm bells ring as manufacturing dives

 Economy  13 Responses »
Feb 142009
 

ipp_dec08

Manufacturing hurtles down a cliff Source: Statistics Department, Malaysia

There are three components to our Industrial Production Index — manufacturing, mining and electricity. Manufacturing (see dotted line), the most crucial, appears to be in free fall by December.

Manufacturing accounts for 71 per cent of the Index and contributes 28 per cent of GDP. It also employs 20 per cent of workers. And then there’s the ‘multiplier effect’ on the rest of the economy.

Continue reading »