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THE FINANCIAL ORDER NEW WORLD Moves toward the establishment of a world government, along with a global central bank and a single currency, will result in a decline in democracy and arise in authoritarianism. Part 2 of 2 n 16 March 2009, Itar-Tass reported that "Russia suggests the G20 summit in London in April should start establishing a system of managing the process of globalization and consider the possibility of creating a supra-national reserve currency or a ‘super-reserve currency’...that will be issued by international financial institutions". Russia said that "[i]Jt looks expedient to reconsider the role of the IMF in that process and also to determine the possibility and need for taking measures that would allow for the SDRs (Special Drawing Rights) to become a super- reserve currency recognized by the world community".” On 23 March, the Financial Times reported that China's central bank “proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund". The goal would be for the world reserve currency to be "disconnected from individual nations" and be "able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based nationa currencies". The chief China economist for HSBC stated: "This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money." According to the article, the Governor of the People's Bank o China, the central bank, "suggested expanding the role of special drawing rights, which were introduced by the IMF in 1969 to support the Bretton Woods fixed exchange rate regime but became less relevant once tha collapsed in the 1970s". The report stated: "Today, the value of SDRs is based on a basket of four currencies—the US dollar, yen, euro and sterling— and they are used largely as a unit of account by the IMF and some other international organisations. China's proposal would expand the basket o currencies forming the basis of SDR valuation to all major economies and set up a settlement system between SDRs and other currencies so they could be used in international trade and financial transactions. Countries would entrust a portion of their SDR reserves to the IMF to manage collectively on heir behalf and SDRs would gradually replace existing reserve currencies."“' On 25 March, Timothy Geithner, Treasury Secretary and former President o he Federal Reserve Bank of New York, spoke at the Council on Foreign Relations. When asked a question about his thoughts on the Chinese proposal for the global reserve currency, Geithner replied: "...1 haven't read he governor's proposal. He's a remarkably—a very thoughtful, very careful, distinguished central banker. Generally [I] find him sensible on every issue. But as | understand his proposal, it's a proposal designed to increase the use of the IMF's special drawing rights. And we're actually quite open to that suggestion. But you should think of it as rather evolutionary, building on the current architectures, than...rather than moving us to global monetary union."” (Emphasis added.) by Andrew G. Marshall Research Associate Centre for Research on Globalization Montreal, Canada © 6 April 2009 Website: http://www.globalresearch.ca Research Associate Centre for Research on Globalization Montreal, Canada © 6 April 2009 Website: http://www.globalresearch.ca NEXUS ¢ 17 Renewed Calls for a Global Currency by Andrew G. Marshall AUGUST — SEPTEMBER 2009 www.nexusmagazine.com