World needs to end risky reliance on U.S. dollar: Bank of England's Carney

[bostonangler]

JACKSON HOLE, Wyo. (Reuters) - Bank of England Governor Mark Carney took aim at the U.S. dollar's "destabilising" role in the world economy on Friday and said central banks might need to join together to create their own replacement reserve currency.

The dollar's dominance of the global financial system increased the risks of a liquidity trap of ultra-low interest rates and weak growth, Carney told central bankers from around the world gathered in Jackson Hole in the United States.

"While the world economy is being reordered, the U.S. dollar remains as important as when Bretton Woods collapsed," Carney said, referring to the end of the dollar's peg to gold in the early 1970s.

Emerging economies had increased their share of global activity to 60% from around 45% before the financial crisis a decade ago, Carney said.

But the dollar was still used for at least half of international trade invoices - five times more than the United States' share of world goods imports - exposing many countries to damaging spillovers from swings in the U.S. economy.

Carney - who was considered a candidate to be the next head of the International Monetary Fund but failed to secure backing from Europe's governments - said the problems in financial system were encouraging protectionist and populist policies.

Earlier on Friday, U.S. President Donald Trump said he was ordering U.S. companies to look at ways to close their operations in China, the latest twist in mounting trade tensions between Washington and Beijing.

Carney warned that very low equilibrium interest rates had in the past coincided with wars, financial crises and abrupt changes in the banking system.

China's yuan represented the most likely candidate to become a reserve currency to match the dollar, but it still had a long way to go before it was ready, Carney said.

The best solution to dislodge U.S. currency would be a diversified multi-polar financial system, something that could be provided by technology, Carney said.

Facebook's <FB.O> Libra was the most high-profile proposed digital currency to date but it faced a host of fundamental issues that it had yet to address.

"As a consequence, it is an open question whether such a new Synthetic Hegemonic Currency (SHC) would be best provided by the public sector, perhaps through a network of central bank digital currencies," Carney said.

Such a system could dampen the "domineering influence" of the U.S. dollar on global trade.

"Even a passing acquaintance with monetary history suggests that this centre won't hold," Carney said. "We need to recognise the short, medium and long-term challenges this system creates for the institutional frameworks and conduct of monetary policy across the world."

https://finance.yahoo.com/news/world-needs-end-risky-reliance-192352122.html

 

 

 

I think the stable genius has made the banksters rethink their position. If the central banks remove the dollar as the reserve currency, your grandkids are going to be working as servants to their new masters.

B/A

[nstoolman1]

11 minutes ago, bostonangler said:

I think the stable genius has made the banksters rethink their position. If the central banks remove the dollar as the reserve currency, your grandkids are going to be working as servants to their new masters.

B/A

That is where the 2nd A comes into play.

[bostonangler]

1 minute ago, nstoolman1 said:

That is where the 2nd A comes into play.

 

You mean the right to bear arms???  The central banks are private banks and they control the world's money. They don't roll over and they don't play games... They have the power to change history, fortunes and the future, if they decide to do so... These are the people with the real power and they could care less about any government or leader who stands against them. I don't like it, but that's the way it is. We wouldn't even have a military if they didn't give us the money to pay for it.

 

B/A

[nstoolman1]

I was commenting on the last sentence in you post.

With out the ability to own a fire arm, yes we will be slaves to a master.

There was trading and buying before a world bank and it will continue after. 

[bostonangler]

A central bank-supported digital currency could replace the dollar as the global hedge currency, said Bank of England governor Mark Carney.

Speaking at the Economic Policy Symposium in Jackson Hole, Wyoming, on Friday Carney discussed the need for a new international monetary and financial system (IMFS), noting that while the U.S. dollar has played a dominant role in the world order over much the past century, recent developments such as increased globalization and trade disputes may have stronger impacts on national economies at the present moment than they would have in the past.

Carney highlighted the dollar’s use in international securities issuance, its use as the primary settlement currency for international trades and the fact that companies use dollars as examples of its dominance. However, “developments in the U.S. economy, by affecting the dollar exchange rate, can have large spillover effects to the rest of the world.”

Related: China’s Digital Fiat Wants to Compete With Bitcoin – But It’s Not a Crypto

“While the world economy is being reordered, the U.S. dollar remains as important as when Bretton Woods collapsed,” Carney continued.

Carney suggested a number of possible replacements to the dollar, including the Chinese renminbi, and most notably, a digital currency supported by an international coalition of central banks. He said:

 

“It is an open question whether such a new Synthetic Hegemonic Currency (SHC) would be best provided by the public sector, perhaps through a network of central bank digital currencies.”

 

“An SHC could dampen the domineering influence of the U.S. dollar on global trade,” Carney said.

Related: Bank of England Governor Says Facebook’s Libra Crypto Will Be Scrutinized

Technology can disrupt the current network effects that protect the dollar, he explained, noting that an increasing number of transactions occur online and use electronic payments rather than cash.

While he did not explicitly reference cryptocurrencies, he did note that “the relatively high costs of domestic and cross border electronic payments are encouraging innovation, with new entrants applying new technologies to offer lower cost, more convenient retail payment services.”

Libra example

One example is Facebook’s proposed Libra crypto project, he noted. The social media giant has proposed Libra as a payments infrastructure and stablecoin backed by a basket of national currencies.

To succeed, Libra needs to address regulatory issues, Carney said.

“The Bank of England and other regulators have been clear that unlike in social media, for which standards and regulations are only now being developed after the technologies have been adopted by billions of users, the terms of engagement for any new systemic private payments system must be in force well in advance of any launch.”

While a digital currency might not yet be ready to replace the dollar as a global currency, “the concept is intriguing,” Carney said.

“It is worth considering how an SHC in the IMFS could support better global outcomes, given the scale of the challenges of the current IMFS and the risks in transition to a new hegemonic reserve currency like the Renminbi,” he said.

If this new SHC were to take on a greater share of global trade, “shocks in the U.S. would have less potent spillovers,” he suggested, adding:

 

“By the same token, global trade would become more sensitive to changes in conditions in the countries of the other currencies in the basket backing the SHC.”

 

https://finance.yahoo.com/news/uk-central-bank-chief-sees-201715816.html

 

 

 

Oh boy

B/A

[bostonangler]

1 minute ago, nstoolman1 said:

I was commenting on the last sentence in you post.

With out the ability to own a fire arm, yes we will be slaves to a master.

There was trading and buying before a world bank and it will continue after. 

 

There will be, but it's looking more and more it won't be in dollars... Do you realize America makes money on every drop of oil sold across the globe... If that stops think about what that would mean...

 

And the above post has the Central Bank of England now talking crypto... If that happens they will be able to see every amount of money everyone has in their possession. Digital currency would bring total control. I don't know about you, but lot's of people have a stash of cash... If digital happens there will be no stashing cash. That is the ultimate enslavement by the Illuminati, Bilderbergs or whatever you want to call them. 

Think of Star Trek.... Remember when they talked about "credits"? This is where they would love to take it. A one world currency that is digital and we have credits...

 

B/A

[coorslite21]

On 8/23/2019 at 5:59 PM, bostonangler said:

A central bank-supported digital currency could replace the dollar as the global hedge currency, said Bank of England governor Mark Carney.

Speaking at the Economic Policy Symposium in Jackson Hole, Wyoming, on Friday Carney discussed the need for a new international monetary and financial system (IMFS), noting that while the U.S. dollar has played a dominant role in the world order over much the past century, recent developments such as increased globalization and trade disputes may have stronger impacts on national economies at the present moment than they would have in the past.

Carney highlighted the dollar’s use in international securities issuance, its use as the primary settlement currency for international trades and the fact that companies use dollars as examples of its dominance. However, “developments in the U.S. economy, by affecting the dollar exchange rate, can have large spillover effects to the rest of the world.”

Related: China’s Digital Fiat Wants to Compete With Bitcoin – But It’s Not a Crypto

“While the world economy is being reordered, the U.S. dollar remains as important as when Bretton Woods collapsed,” Carney continued.

Carney suggested a number of possible replacements to the dollar, including the Chinese renminbi, and most notably, a digital currency supported by an international coalition of central banks. He said:

 

“It is an open question whether such a new Synthetic Hegemonic Currency (SHC) would be best provided by the public sector, perhaps through a network of central bank digital currencies.”

 

“An SHC could dampen the domineering influence of the U.S. dollar on global trade,” Carney said.

Related: Bank of England Governor Says Facebook’s Libra Crypto Will Be Scrutinized

Technology can disrupt the current network effects that protect the dollar, he explained, noting that an increasing number of transactions occur online and use electronic payments rather than cash.

While he did not explicitly reference cryptocurrencies, he did note that “the relatively high costs of domestic and cross border electronic payments are encouraging innovation, with new entrants applying new technologies to offer lower cost, more convenient retail payment services.”

Libra example

One example is Facebook’s proposed Libra crypto project, he noted. The social media giant has proposed Libra as a payments infrastructure and stablecoin backed by a basket of national currencies.

To succeed, Libra needs to address regulatory issues, Carney said.

“The Bank of England and other regulators have been clear that unlike in social media, for which standards and regulations are only now being developed after the technologies have been adopted by billions of users, the terms of engagement for any new systemic private payments system must be in force well in advance of any launch.”

While a digital currency might not yet be ready to replace the dollar as a global currency, “the concept is intriguing,” Carney said.

“It is worth considering how an SHC in the IMFS could support system" rel="">support better global outcomes, given the scale of the challenges of the current IMFS and the risks in transition to a new hegemonic reserve currency like the Renminbi,” he said.

If this new SHC were to take on a greater share of global trade, “shocks in the U.S. would have less potent spillovers,” he suggested, adding:

 

“By the same token, global trade would become more sensitive to changes in conditions in the countries of the other currencies in the basket backing the SHC.”

 

https://finance.yahoo.com/news/uk-central-bank-chief-sees-201715816.html

 

 

 

Oh boy

B/A

B/A

 

Does this scare you.....?

 

Your thoughts?          CL

[coorslite21]

On 8/23/2019 at 6:06 PM, bostonangler said:

 

There will be, but it's looking more and more it won't be in dollars... Do you realize America makes money on every drop of oil sold across the globe... If that stops think about what that would mean...

 

And the above post has the Central Bank of England now talking crypto... If that happens they will be able to see every amount of money everyone has in their possession. Digital currency would bring total control. I don't know about you, but lot's of people have a stash of cash... If digital happens there will be no stashing cash. That is the ultimate enslavement by the Illuminati, Bilderbergs or whatever you want to call them. 

Think of Star Trek.... Remember when they talked about "credits"? This is where they would love to take it. A one world currency that is digital and we have credits...

 

B/A

The move to digital/crypto/blockchain is inevitable.....the petrodollar has run it's course....and is/will be replaced by a gold backed PetroYuan.....you/we are fortunate because we see where this is all headed.......

 

Now....figure out how you can profit from what's ahead....or at least how not to be hurt by where this all is headed...

 

JMO.            CL

[bostonangler]

10 hours ago, coorslite21 said:

B/A

 

Does this scare you.....?

 

Your thoughts?          CL

 

What scares me is the idea of lost privacy.... Making money under the table or stashing cash for a rainy day will cease to exist. When I say making money under the table what I mean is, freelancing. I make money freelancing and if it is under $600 it is tax free and sometimes companies pay you in cash on the spot. All this will end. Stashing cash under your mattress or in mason jars will also end. How much gold you have will no longer be unaccounted for. 

 

Digital currency is a dream for the banksters. They will know exactly how money every person on the planet is holding.... I don't like it. Digital money is the Devil's coin.. I know it can't be stopped but I don't like it.

 

B/A