Global Economy Is the Currency of War Problems
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Difficult to sustain the existing system
Next year will be the long-debated reform of the international monetary system to provide a new impetus. This means that the U.S. dollar as the world's most popular currency status will come to an end.
Talking about the end of U.S. hegemony is not new.
Back in September 2007, to former Federal Reserve Chairman Alan Greenspan said the euro could eventually replace the dollar as the world's major reserve currency. At least 70 years since the last century, commercial and financial relations called for a new set of voices on the Bretton Woods rules been sounded.
However, in 2008, the U.S. economy continued to weaken after the financial crisis, coupled with the Fed then decided to inject a large number of cheap international money markets to buy U.S. government debt purchases, the debate flares again.
At the same time, China has a huge trade surplus in the case but do not want to revalue the yuan has further strengthened the people's view that the current system has been difficult to sustain.
French President Nicolas Sarkozy in the November 20 summit of the Group of Seoul, said: "We have to update the international monetary system in the 21st century." France currently holds the rotating presidency of the Group of Twenty.
Currency War clouds
In 2010, most of the time, the money market caused by the tension between Europe and the United States, the United States and China and between China and the Asian Currency War rivals the explosive situation, Brazil and other emerging countries, so by both sides.
This year in October, it was the first openly talked about the currency of war, among them the Brazilian Finance Minister. It is no accident, because Brazil has experienced a large influx of investor capital, higher earnings situation.
Investors shifted funds led the Brazilian real currency soared to a substantial increase in the price of Brazilian exports. Since the beginning of 2009, the real exchange rate against the U.S. dollar has increased more than 30%.
Currently, more than 80% of global foreign exchange transactions in U.S. dollars, although the U.S. economy in the global economy less than a quarter share.
Meanwhile, more than 60% of the international reserve currency the U.S. dollar, U.S. economic policy therefore has a very large influence. No wonder the world in the mid-term elections the Democrats lost control of Congress alarmed.
In Seoul, leaders of the Group of Twenty vowed to keep the current account imbalances "sustainable levels" and take action to establish a "reflect economic fundamentals", "to a greater extent by market-determined exchange rate system."
Sarkozy, the common expression of the parties concerned to promote the establishment of "stability, well-functioning international monetary system," the desire to show that the leaders of the Group of Twenty has finally admitted the current system there "problem." |
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Author Resource:-
Chris Holigan a professianl writer from , it provides the high quality products, such as 7 Inch Digital Photo Frames, PSP MP5 Player Manufacturer, and many more.
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By :
Jessie Stone
Submitted
2010-12-30 09:29:18 |
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