Prime Minister Brown recently also indicated that supports European Union’s request, must strengthen to the transnational finance activities supervision. The public opinion not yet when sees a positive result to US and Europe’s argument, People’s Bank of China President Zhou Xiaochuan recently launched in salvos three signed articles, proposed that strengthens in the International Monetary Fund existing to withdraw money the power system specially, intends to withdraws money the power to complete truely specially the ultra sovereignty the new international reserves currency, substitutes for US dollar in the international market the monopoly the status.
This suggestion not only obtains Russia, Brazil and so on emerging market country response, but also obtained the United Nations and International Monetary Fund and so on International organization’s approval. According to Britain Financial Times reported that the United Nations Advisory commission on 26th suggested to the United Nations General Assembly, the global leader should achieve the mutual recognition as soon as possible on the foundation substitution US dollar whole world reserve currency system, counter-balances the main reserve currency rapid depreciation the risk. This commission chairman, the Nobel economic prize winner, American economist Stieglitz indicated that the whole world reserve currency system reform should carry on early, fluctuates highly the currency is very difficult to become the formidable reserve currency. The finance is unstable forces the developing country to accumulate US dollar reserve by against emergency requirement, its consequence took has originally been possible to use for to help them to this financial crisis most serious influence several thousand hundred million US dollars funds.
Stieglitz said: by IMF special money withdrawal power substitution US dollar is the quickest way, but I believed that in the long run, should better establish newly international (reserve currency) the organization. Except the union overseas, the International Monetary Fund as well as some countries also to establish the ultra sovereignty the international reserves currency to express the approval. International Monetary Fund president Strouse Kann indicated on 25th: to may substitute US dollar reserve currency to carry on the discussion to be completely reasonable. May start within several months to discuss comprehensively. Actually, as early as before the second world ended in the Bretton woods conference which holds, the British government delegation had proposed on behalf of Keynes establishes some kind the world currency the idea, he also suggested names for Ban Ke, with English bank harmonics. But two wartime US accumulated the world more than 50% gold reserve, US’s foreign trade has occupied the world trade 1/3, US’s let other countries in world economics dominant position yield finally, established finally take US dollar as the core international currency system, US dollar has formed 1 Ounce gold with the gold to be equal to 35 US dollar fixed rates of exchange.
But US dollar standard’s system very quick exposed its malpractice. Belgian economist Triffin who teaches in the Yale wrote in 1957 to point out that US dollar with the gold suspension hook, continued the trade deficit depending on the American international payment balance to come to provide to the world pays off the strength, definitely will cause US dollar to fall into one kind to be in a dilemma the region: US’s ge receipt and disbursement is not balanced becomes the various countries reserve assets fluid origin, but long-time formerly, US’s unfavorable balance of payments will reduce other countries to US dollar property confidence.
Triffin is International Monetary Fund’s senior consultant, he in 1968 proposed that founds one kind of world currency in the International Monetary Fund -To withdraw money the power specially. in 1969, withdrew money the power system building specially, dealt with the unfavorable balance of payments for the US to provide certain ability. But in 1971 erupted US dollar crisis, American President Nixon had decided that let US dollar get unhooked with the gold, US dollar depreciation. Hereafter, the Bretton woods system disintegrates gradually, the international currency system entered the free float time.
According to Ireland the commercial world the website on July 21 reported that to avoid the debt seeking friendships, Ireland must in the fiscal budget cut 3,000,000,000 euros expenditures at least in 2011. Does the Irish Government in the Dublin Convention cabinet meeting, how mainly discuss at the same day cuts these 3,000,000,000 euros expenditures. Before this, according to likes Ministry of Finance’s request, various Government department has been assigned certain specified amount budget cut duty, at present various departments respective reduced separately the plan submission to the cabinet.
China Daily net China online news: English “China Daily” on April 1 will publish the review article, the article pointed out that along with summit’s approaching, the people actually unceasingly are reducing to 20 country summit result’s anticipation. China proposed that 20 country summit’s recent subject not only obtains Russia, Brazil and so on emerging market country response, but also obtained the United Nations and International Monetary Fund and so on International organization’s approval.
The full text translation is as follows: London’s 20 country summit soon convenes. The consensus thought originally that this 20 countries have the world 90% gross national product, 80% volumes of trade and 2/3 population, if these 20 national leader in deals with at the global crisis to achieve consistently, will adopt the consistent standpoint and the coordinated policy, the global economic will go out the crisis quickly. But along with summit’s approaching, the people actually unceasingly are reducing to 20 country summit result’s anticipation, this is mainly because in the developed country American and European Union’s suggestion is far from, both sides resemble very difficultly to achieve consistently. Guo Degang the right and wrong mutual hatred history is very much big the bottom (group chart) The grain price high rising tide sweeps across China The asset management company collaborates the place to make PE The petroleum 600,000,000,000 projects seek the privately operated partner Beijing sum total subsidy Public hospital loss In the railroad order form net hopeful year clears Associates over 1,000,000,000 buys stock the divine land to rent a car micro abundant the minority rich person grain bin room does not have the influence to the poor person The EU country advocated that must solve the financial organ interstate investment supervision problem first, and thought that the EU country the fiscal stimulus plan already sufficed dynamics, does not need to continue to expand the public expenditure again.
The US is opposite, believed that own stimulation plan was still insufficient, and encourages other country also to increase the fiscal stimulus plan. The US is not very willing to establish the so-called interstate supervision, because US’s Financial company is a Multinational corporation, the majority of activities are the interstate transactions, they are very not willing to let European Union such organization meddle to their supervision.
US and Europe’s standpoint difference concerns with they respective history. What the American worried is the government gets rid not quickly, will cause the 1930s’s big crisis, because that crisis by the human was thought that was President Hoover hesitates over and over, missed has rescued the city the opportunity. But European’s worry mainly comes from the German to the runaway inflation worry, because that crisis had once caused Germany Wei time the Ma Republic presented in the universal history the rare runaway inflation, the people’s property loss danger, has caused the Nazi regime to come on stage finally. The British government holds originally with The US government difference not many manner, but once again made a turn recently.
Looking from the previous month euro to US dollar exchange rate, highest once had been to 1.37~1.38, at present fell below 1.30. the investor does not feel the brains at the same time, also to euro confidence blow hot and cold.The above public figure expressed. Flows looking from the fund, Pengboshe data demonstrated that some ETF the fund once US dollar dropped sharply after on March 18 for the first time looked at many euros. But the American Stock market’s restoration gradually, the financial organ bond’s rate of return rises, part of investors also eject the euro to purchase US dollar property.
Looking from some arbitrage swapper’s viewpoint, they thought that European country investment variety rates of return and so on bond are low, therefore the euro will undersell buys up the Japanese Yen.A foreign capital’s foreign exchange trader on 20th indicated to reporter that the above fund’s trend creates the partial reasons which the euro falls. One familiar foreign foreign exchange market public figure said that near section time under the market different view, in the foreign exchange market still some people unceasingly sold the euro, the main force was the Central Bank. Regarding the euro future trend, this public figure indicated that the euro almost fell to the end, estimated that in the future in three months may go out the upward quotation, at present may consider that buy up the euro. But the fore-mentioned bank’s transaction public figure believed that in the near future the euro will fluctuate in the sector, in the future several week of euros will continue to fall, but before the end of the year, will not break the record low point which since this year will set the record. The euro once fell at the beginning of March to 1.24 about. Hu Ming believed that euro economic indication present difference in other economies, but financial organ’s release lever multiple high, goes to the release lever degree actually far to be inferior to the US, therefore the euro will present the weak trend for a long time.
The Deutsche Bank will have the memoir to demonstrate in the near future, if Eurozone’s trade weighting exchange rate will rise 6%, will be equal in the Eurozone interest on futures 75 basic points. from Eurozone’s wish, they are not willing to see the strong trend the euro.Hu Ming expressed. Liu Dongliang said that because the economic crisis not yet ended, the investor still had to US dollar takes refuge from danger the demand; Even if the economic crisis past, the market will go to the focal point the economic resurgence quickest area, US dollar strong trend was very possible to maintain the next interest on futures cycle to end. (The 21st century economy report).
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