User:Amazonas~enwiki/New Asian currency

Started on behalf of Amazonas per an email to my account.-- VS talk 22:08, 23 July 2009 (UTC)

New Asian Currency
There are many reasons for the decline of the value of the US dollar over time, and today the central bankers of Asia from China to Japan have realized that the time has come for the creation of a new mega currency similar to the euro: the New Asian Currency.

Finally, we have reached the end of the line for the US dollar currency supremacy, and that has to do among other things with the economic and geopolitical changes that we have had in the world since 1945.

The US dollar served its purpose since the end of WW II and became the major foreign exchange reserve currency for the system that emerged after the war. The days of the US dollar playing that special role that created an international monetary system that revolved around the US dollar as its main currency has reached the end of the line, since today that system is very sick and it is dying a slow death.

The US government and Americans in general lost sight of the role that the US dollar has been playing in the world international monetary system since 1945 when the US dollar started becoming an important part of the foreign exchange reserves of many countries. When a currency achieves that status of a major reserve currency the world expects at a minimum that the currency would be managed in a way to protect its intrinsic value over time. That is not what has been happening to the US dollar for a long time.

The value of the 1947 US$ 1.00 has declined consistently since the US dollar became the major foreign exchange reserve currency, and in April 2009 that same US$ 1.00 dollar is worth only $ .08 cents; that is how much of the value of the US dollar has evaporated because of inflation.

During the Reagan and Clinton administrations, the method of calculating rising prices was altered in ways that lowered the official US inflation rate, and if we adjust the current value of the 1947 US$ 1.00 to be consistent with the pre-1983 method of calculating inflation, then the current value of that same US$ 1.00 dollar would be worth about $ .01 cent.

Since the US dollar became the center of the international monetary system starting with the Marshall Plan in 1947 - an unusual place for the currency of any one country to stay for a long period of time - the world has changed in drastic ways during all these decades resulting in a system that is completely broken today and ready to be replaced by a new system that represents the new global circumstances that have evolved since that time.

Today we have too many US dollars flying around the world; an over supply of US dollars that can be considered more as a massive bubble than a currency that can be justified by the prospects of the economic performance of the United States in the coming years. (Today over 70 percent of the US dollar currency ever created is flying around the world outside the circle of influence of the US Federal Reserve and the US government.)

Today, the United States is no longer master even of its own currency, since the accumulation of US dollars as foreign currency reserves by other countries around the world has placed the future economic and financial policy options of the United States in real jeopardy.

At the outset of the 21st Century slowly a new international monetary system is emerging as we move from a system dominated by one world superpower and its dominant currency, the US dollar, to a new world system of 4 or 5 major block of countries and its currencies - these are the members of the new world economic order which will include the North American Union (US dollar), the European Union (euro), the Asian Union (New Asian Currency), the Arab Middle East Union (Gulf Currency), and maybe even some other economic Union block that we can't see at this time.

Regarding China and the New Asian Currency (RGE Monitor - July 2009       ) It is time for China to show a sense of leadership and create immediately and implement a plan for the creation of a New Asian Currency similar to the euro – and give central bankers a new major foreign exchange reserve option for them to be able to diversify their current holdings.

It would be a mistake for China to try to establish the yuan as the New Asian Currency (Brazzil magazine - July 2009 ) to compete with the US dollar and the euro as one of the main global reserve currencies.

A New Asian Currency would be a better choice in the long run not only for China, but also for the other countries that decide to adopt the New Asian Currency including Japan.

Basically, the International Monetary System that we have had for a few decades that revolves around the US dollar has finally reached the end of the line, and the current international monetary crisis was the last straw necessary for the world to realize that they need a new redesigned international monetary system that would be compatible with the new realities of the 21st Century.

An international monetary system based on the "US dollar" was a solution for the world of yesterday, a world long gone, a world that represents the past, the world of the 20th Century.

The new world order of the 21st Century needs urgently a new international monetary system designed to support the international monetary and economic needs of the 21st Century.

18:51, 3 August 2009 (UTC)