Cable Calls For New Reserve Currency, Ie Imf Sdr

[inflating]

http://uk.reuters.com/article/2011/08/06/uk-economy-britain-currency-idUKTRE77518W20110806

Business minister Vince Cable on Saturday backed China's call for a new stable global reserve currency in light of the United States losing its AAA long-term credit rating from Standard & Poor's, but said for the moment the U.S. dollar still remained key.

Something afoot?

[Democorruptcy]

Vince needs to make his mind up. How does continually increasing the US debt, like he was asking for last week, make the dollar stronger?

Vince Cable, the business secretary, has attacked 'right-wing nutters' in the US Congress for rejecting a debt deal, saying they pose a bigger threat to the world economy than the eurozone crisis.

The comments by Mr Cable, who is one of the most outspoken members of Britain's coalition government, came as President Barack Obama vied with Republican lawmakers for a deal to avert an unprecedented debt default.

"The irony of the situation at the moment, with markets opening tomorrow morning, is that the biggest threat to the world financial system comes from a few right-wing nutters in the American Congress rather than the eurozone," Cable told the BBC's Andrew Marr on Sunday.

http://uk.finance.yahoo.com/news/Vince-Cable-launches-attack-tele-2346093834.html?x=0

[guitarman001]

I used to think Vince was half decent, but now I think he's just a t0sser.

[Democorruptcy]

Vince talked a good talk "an economy built on rising house prices is an economy built on sand" pre-election, since then he has turned out to be just another gimp.

[leicestersq]

What has happened to Vince? Why do all politicians always want to add another layer of complexity and cost to everything when the main problem is complexity and cost?

The transaction between and borrower and lender just needs to be left alone. If the US borrows too much or prints too much, markets can deal with that. No need for another currency, I just dont see how that can help.

[inflating]

I used to think Vince was half decent, but now I think he's just a t0sser.

Vince talked a good talk "an economy built on rising house prices is an economy built on sand" pre-election, since then he has turned out to be just another gimp.

What has happened to Vince? Why do all politicians always want to add another layer of complexity and cost to everything when the main problem is complexity and cost?

The transaction between and borrower and lender just needs to be left alone. If the US borrows too much or prints too much, markets can deal with that. No need for another currency, I just dont see how that can help.

+1 as above.

Radio 4 just now, some guest speaker called George seemed pretty much unconcerned about inflation in the UK, he thinks the current situation is deflationary. My mind is at rest now, how do I change my username...

[MrFlibble]

Vince talked a good talk "an economy built on rising house prices is an economy built on sand" pre-election, since then he has turned out to be just another gimp.

+1

Him and Clegg are simply Cameron and Osborne's sock puppets.

[Bloo Loo]

One doesnt "create" a reserve currency.

The Issuer has to create CONFIDENCE.

Im afraid The Pound (Cable) doesnt inspire like it used to.

[inflating]

One doesnt "create" a reserve currency.

The Issuer has to create CONFIDENCE.

Im afraid The Pound (Cable) doesnt inspire like it used to.

My opinion is that one of the reasons it doesn't is because the BoE have consistently failed to act to avoid bubbles and inflation, blaming everything as usual on external factors

Poland, a country which had a nasty bout of hyperinflation in the 90s I believe, has a very different attitude. Sir Merv, if you're worth your salt, take note of what a proper central bank does: http://www.bloomberg.com/news/2011-06-20/polish-central-bank-must-raise-benchmark-interest-rate-kazmierczak-says.html

They take it seriously there, Sir Merv, they really do have a proper education in Poland - they don't just blow hot air and go to fancy grand dinners. Polish school-children, despite recent poor results, have an education that I personally hugely envy. They probably know more about economics by 18 than many UK economists know by 38

Not just Cable, but China as well.

http://www.guardian.co.uk/business/2011/aug/06/us-credit-rating-downgrade-china

Theres more to this than meets the eye.

Interesting times

Edited August 6, 2011 by inflating

[Gigantic Purple Slug]

One doesnt "create" a reserve currency.

The Issuer has to create CONFIDENCE.

Im afraid The Pound (Cable) doesnt inspire like it used to.

+1

What has happened to Vince? Why do all politicians always want to add another layer of complexity and cost to everything when the main problem is complexity and cost?

So that when it all goes pear shaped they can blame someone else. Its those nasty IMF people that are making us hike rates. Nothing to do with us. No sir.

Also making things more opaque makes them harder for people to figure out what's going on. That's why the government in general won't play around with the basic rate of income tax but will fiddle around with other taxes because people are less likely to figure out that's going to cost them money, and the exact amount of money its going to cost them is harder to calculate.

Vince has just made the transition from opposition, where the task is to clearly spell out the ruling parties policy so people can see how much they are being ripped off to the party of power where the job is to obscure how much you are ripping people off.

Edited August 6, 2011 by Gigantic Purple Slug

[clockslinger]

Does anyone still think Cable, Osbourne, Clegg or Cameron will do anything different from Brown?

[Bruce Banner]

Does anyone still think Cable, Osbourne, Clegg or Cameron will do anything different from Brown?

Yes, they're cutting spending which Brown would never do.

I agree that Cable is a silly old fart though.

[Pytyr]

But not in the Chinese proverb sense.

i always thought it was a chinese curse, so it was used in exactly the right sense

[_w_]

Replying to Cable Calls For New Reserve Currency, Ie Imf Sdr

Windbag politician (required IQ of less than 100) suddenly wakes up one morning with complete understanding of global monetary matters and their socio-economic implications and sees the need for a new international monetary system.

[Ruffneck]

So do the conspiracy theory rantings of a one world currency led by a world government sound as crazy as they did a decade ago?

The bankstaz are taking over , one soverign nation at a time.

[Democorruptcy]

Yes, they're cutting spending which Brown would never do.

Are you sure they aren't just pretending to cut spending?

Their budget increased spending in every year of this parliament.

[pl1]

Vince talked a good talk "an economy built on rising house prices is an economy built on sand" pre-election, since then he has turned out to be just another gimp.

Agreed and he kept quiet about his pro-mass immigration stance pre-election too didn't he?

His call sounds like it's based on The Triffin Paradox

[stormymonday_2011]

Not a new idea. It was suggested by Keynes as an option before Bretton Woods but was rejected by the US as they wanted to entrench their position as the worlds dominant power by making the dollar a reserve currency.

[R K]

Not a new idea. It was suggested by Keynes as an option before Bretton Woods but was rejected by the US as they wanted to entrench their position as the worlds dominant power by making the dollar a reserve currency.

Precisely.

It's a statement of the bl**din obvious.

Keynes Bancor.

The ridiculous current mess with China gaming the system to generate surplus dollars because of their trade requirements and the US having to create deficits to finance the creation of this demand for dollars is just bonkers. No nation can or should be both the creator of the global reserve currency and manage its domestic economy via monetary policy. Triffin dilemma an all that. The end result is unfolding before our very eyes.

Either we rollback this ludicrous iteration of 'globalism' based on gaming and cartels or we'll end up degenerating into even more dramatic imbalances, wild unimpeded capital flows (capital controls needed now!) and probably a war between US and China or parts of Europe or their proxies.

The problem is the Repubs, the corporatists, the Bullingdon Boys, and their Chinese and probably Indian counterparts etc only have one goal and that's zero taxes for their backers and f*ck everybody else.

[Errol]

Are you sure they aren't just pretending to cut spending?

Their budget increased spending in every year of this parliament.

This.

There are no cuts. It's a bluff -- and one certain to fail.

[mfp123]

Not a new idea. It was suggested by Keynes as an option before Bretton Woods but was rejected by the US as they wanted to entrench their position as the worlds dominant power by making the dollar a reserve currency.

i think people need to get away from the idea that the dollar is enforced as a "reserve curency".

a reserve currency is simply an asset that you hold. no one forces you to choose it.

why do people hold the dollar? well firstly the US is the biggest economy in the world, so most business is often done in US dollars.

secondly you want to hold a currency that you can spend somewhere.

you know you can spend your US dollars in the US, the US is a desirable place, so its in demand. people want dollars.

as the US becomes less desirable, so does the dollar.

the US dollar as a reserve currency is not a system. people simply choose to hold it / trade in it.

if people want to be paid in euros for their goods, then you buy euros. if they want US dollars then you need to buy US dollars. its as simple as that.

Edited August 6, 2011 by mfp123

[Bruce Banner]

Are you sure they aren't just pretending to cut spending?

Their budget increased spending in every year of this parliament.

Judging from the fuss that Red Ed and Blinky Balls are making, they would spend more.

[Flatdog]

Vince talked a good talk "an economy built on rising house prices is an economy built on sand" pre-election, since then he has turned out to be just another gimp.

Agreed.

It isn’t that long ago that Vince Cable was the only MP that made any sense in the House of Commons, an HPC hero?

Given a role in Government he has transformed into an aged and hopeless numpty, devoid of respect from all quarters.

Sad really, but inevitable.

[Democorruptcy]

Judging from the fuss that Red Ed and Blinky Balls are making, they would spend more.

So they aren't cutting, perhaps just spending less than Labour? I can agree with that but cuts no, not where they should be.

[Pytyr]

i think people need to get away from the idea that the dollar is enforced as a "reserve curency".

a reserve currency is simply an asset that you hold. no one forces you to choose it.

why do people hold the dollar? well firstly the US is the biggest economy in the world, so most business is often done in US dollars.

secondly you want to hold a currency that you can spend somewhere.

you know you can spend your US dollars in the US, the US is a desirable place, so its in demand. people want dollars.

as the US becomes less desirable, so does the dollar.

the US dollar as a reserve currency is not a system. people simply choose to hold it / trade in it.

if people want to be paid in euros for their goods, then you buy euros. if they want US dollars then you need to buy US dollars. its as simple as that.

i've found that dollars are accepted as currency in most countries of the world. To me, that's what reserve status means