Soft, Timid Whisper – A New Global Reserve Currency
The next good thing is that the world will have to seriously think of an alternate international reserve currency. The privileged position of the US dollar as reserve currency puts the US in a unique position. But the irony of the flight to US dollars when the US is the epicentre of the crisis will, hopefully, not be lost on the world once the crisis is over.
…The ugliest aspect, however, is the possibility the world will once again seek band-aid solutions rather than address the root cause of our present problems: the pivotal role of the dollar as reserve currency that gives the US the ability to privatise the gains and socialise the losses.
…The world must ensure there is no repeat of a situation where the US is able to call all the shots simply because the dollar is the international reserve currency. This is the root cause of our present problems. The danger is we will brush it under the carpet once the dust has settled. And that is the most frightening part of all.
The Indian media, political space, blogs, have all been ominously quiet about the need for a new reserve currency. The few who have raised this question, have done it very timidly. No one sees the important role that India will play in this!
And because no one sees it, they are also not preparing for it! This unpreparedness is what is a matter of concern!
The 2ndlook model for a Third currency Bloc is ready. Join in to review, participate, critique and develop the First Cut. While the need for a new global reserve currency has been evident, there is very little in the public sphere. The speed of events has clearly caught the BRICS and Third World napping – and unprepared. But, not 2ndlook – who, from the very beginning, proposed that the world should stop clinging to the Dollar-Euro skirts.