The United Nations would like the dollar, euro, yen, and other national currencies to be succeeded by a new “global currency.”
That recommendation appears in a U.N. report released this week, which suggests the dollar’s outsize role in international finance has ended — and says that it’s time to invent a successor currency that would be managed by a “Global Reserve Bank.”
Countries could “agree to exchange their own currencies for the new currency, so that the global currency would be backed by a basket of currencies of all the members,” says the 218-page report from the U.N. Conference on Trade and Development.
Keep in mind that this is a U.N. report written by bureaucrats without any actual legal ability to create the global equivalent of the Federal Reserve. Anyone who remembers how a U.N. agency once called for a global e-mail tax of one cent per 100 e-mail messages — but didn’t exactly get it — can attest to that.
The U.N. report grew out of the financial problems that swept the world in the last year or two, which it diagnoses as arising from too much speculation in commodity markets, a bubble in stock markets and housing markets, and trade imbalances between countries like China and the United States. Its prescription? “More stringent financial regulation” and “diversification away from dollars” as part of a new system of constant exchange rates.