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.
Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket. Read full article here.
Meanwhile, the speed at which global manufacturing is falling is reminiscent of the bust leading up to the Great Depression. Check out this NYT article here.