Home > Global Finance, Indian Economy, Politics > New Global Reserve Currency – India seems directionless …

New Global Reserve Currency – India seems directionless …

India outlines steps to deal with global financial crisis-Intl Business-Business-The Times of India

India … outlined the steps it wants taken to lift the global economy out of the current financial morass. Addressing leaders of 45 Asian and European countries at the ASEM summit here, PM Manmohan Singh said the first step would be to “de-clog” the global credit markets which had choked up as a result of the crisis.

Second, multilateral financial institutions (MFI) like World Bank and IMF should step in with larger resources to invest in large infrastructure projects in developing countries, which can act as a stabilizer in the global economy. …

It is now clear that India would certainly be present at the November 15 G-20 summit in Washington. … US President George Bush has called up Singh to personally ask him to be present. In what was clearly a global reversal of roles, European countries repeatedly asked Asia to lead the way out of the crisis. N Ravi, secretary (east) in the MEA, told reporters that all EU leaders asked Asian countries to refrain from withdrawing into “economic nationalism”.

Either … or …

India seems to completely lack direction on how to move independently in times like these. After, all why should India even look at IMF and World Bank – which are fig leaf organizations of the West, as transfer mechanisms of wealth from the Third World to the rich.

Or India is working on a different plan, of which we know nothing. After all, India does believe in moving steadily (even, if slowly).

Russia and China

US and EU have their own reserve currencies – leaving Russia and China out in the open. Russia and China (as full P5 powers) will want a ‘lion’s share’ of influence in any new architecture. Which any Third World grouping will not give.


Japan + ASEAN

China-leaning Lee Kuan Yew with an Islamic Malaysia may not be very hot about ‘giving so much influence’ to a ‘new member’ like India for an ASEAN initiative.

Any action which hurts the US, their largest market and patron, will be something that will make Japan and ASEAN hesitate. The very economic model of ASEAN + Japan is undervalued currency + exports to the USA. Hence, they will be wary of any initiative that affects the USA – and the West.

Status Quo …

Interestingly …

Manmohan Singh is the only educationally qualified leader in the leadership line up of major world economies.


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.

  1. anyone
    October 25, 2008 at 3:39 pm

    “India seems to completely lack direction on how to move independently in times like these.”

    If you have some bright ideas, why don’t you spit it out, instead of making pointless criticism. If it is not constructive, it is not criticism.
    Any independent action right now would hurt India more than benefit it.

  2. October 25, 2008 at 4:07 pm

    Oh boy .. we have touched a raw nerve here … never mind ….

    Anyone … there are some links which are embedded in this post. Click on them.

    If you want to see more on this, do go my brother blog – 2ndlook.wordpress.com

    You will get more than you bargained for … I assure you .. and I kid you not …

  3. Renjith Nair
  4. Dsylexic
    October 26, 2008 at 9:52 am

    Here’s what China is thinking about it. http://www.reuters.com/article/newsOne/idUSTRE49N1XX20081024

    I havent heard anything even remotely challening the dollar hegemony in the Indian press/state thinking.

  5. October 26, 2008 at 11:13 am

    Two days before this report and the day before Manubahi made his speech, on 23rd October – From Tripolar Currency System – Connecting the dots – Part II my reading was

    The world may not trust China and Russia too much. Russia and China can be the party poopers – but they cannot be the life of the party.

    ‘The EU-USA-Asia may agree on a broad a global regulatory and oversight body to monitor and maintain oversight over a multiple currency regime. The new currency may an Asian-Developing world currency. Some of Asia may want to cling to the dollar skirt. The new 3rd currency may take some time to figure out.

    Old Chinese habit – Speak only when everything is obvious. What the Chinese are saying is obvious.
    What solution do they have? An oxymoron like a bankrupt banking system! What does Russia have – oligarchs, who have made money by using bribes and spoils! Can these countries run a global system? So, while they bring very little to the table, they want a large share of spoils. And that is why no one will trust them.
    Europe would obviously like to break the dollar hegemony – and muscle into the racket. They know the Third World-Russia-China are not prepared.
    And that is why South Africa and Brazil are essential for India. China and Russia must join in. The benefits are too obvious – and the fallout is non-existent!

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