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Thread: Putin urges reserve currency move

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    Putin urges reserve currency move

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    BBC NEWS | Business | Davos 2009 | Putin urges reserve currency move

    Quote from article
    (He said that Russia opposed spending more money on defence as a way to boost economic growth, as this only aggravated the problem.0

    Yeah right!
    Quote
    (Russia's prime minister also called for a return to "balanced" world energy prices and a new international legal framework for energy security.)

    Again yeah right!

    Quote
    (He wished US President Barack Obama's new team "success", hoping for constructive co-operation between Washington and Moscow.)

    Constructive, meaning, do what is in Russia's interest.

    I had the vague thought that Medvedev was in charge in Russia.
    yeah right.

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    Re: Putin urges reserve currency move

    This doesn't sound right, Putin has got something up his sleeve. He's driving his boats all over the globe and calling for a freeze in defense spending? Yeah!
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
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    Re: Putin urges reserve currency move

    Quote Originally Posted by American View Post
    This doesn't sound right, Putin has got something up his sleeve. He's driving his boats all over the globe and calling for a freeze in defense spending? Yeah!
    If I were in Tblisi or Kyiv, I would be VERY nervous about Putin's intentions.
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    Re: Putin urges reserve currency move

    Quote Originally Posted by jujuman13 View Post
    Link
    BBC NEWS | Business | Davos 2009 | Putin urges reserve currency move

    Quote from article
    (He said that Russia opposed spending more money on defence as a way to boost economic growth, as this only aggravated the problem.0

    Yeah right!
    Quote
    (Russia's prime minister also called for a return to "balanced" world energy prices and a new international legal framework for energy security.)

    Again yeah right!

    Quote
    (He wished US President Barack Obama's new team "success", hoping for constructive co-operation between Washington and Moscow.)

    Constructive, meaning, do what is in Russia's interest.

    I had the vague thought that Medvedev was in charge in Russia.
    yeah right.
    From the article:

    Excessive dependence on what is essentially the only reserve currency is dangerous for the world economy, therefore it would be expedient to encourage an objective process for the emergence of several strong regional currencies in the future," he said.

    Countries issuing such currencies should, he argued, show more policy openness.

    The US dollar continues to dominate official foreign exchange reserves, accounting for 63.9% in 2007 compared with 25.5% for the euro and 4.7% for sterling.
    This is one of the reasons why US invaded Iraq. Saddam urged to stop using dollars in Iraq and he was in the project to made his oil deals with the use of Euros only. This of course, was a greater problem that terrorists in Afghanistan.

    If Saddam was capable to take away the dollar as the exchange currency for business, the other Arabian countries should follow his example and US should be losing its presence and influence in great percent in this zone of the world.

    Now that Russia is providing natural gas to Europe, the flowing of the euros will be expanding in that zone, and Putin is foreseeing the change from one powerful monetary presence into a new one which can still have the countries of his zone as dependents instead of regular exchangers on money.

    Their solutuion, of course to favor their situation, is not only to have a strong currency unit, something that Russia indeed has, but to make it be a worldwide accepted currency unit.

    This is to say, the current status of the US dollar is the example, because regardless of its falling in value, the dollar still is the worldwide accepted currency. What Putin might have in mind is to raise the energy sources costs, in order to increase their incoming profit and from here start to push the circulation of their currency in his zone and in Europe.

    This will put US behind the scenario, because actually US is not accepted to make energy sources deals with the Russia's close neighbors, not because Russia and China oppose to such, but because these countries do not trust US at all.

    Energy at last will be always be the key for the future, and in this war for it, the current nations leaders will fight hard for their own interests. Putin is dangerous for the US interests because he is defending the Russia's interests. Is it something wrong with Putin?
    Last edited by conquer; 01-29-09 at 11:21 AM.

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    Re: Putin urges reserve currency move

    What Putin really said can be found here
    Prime Minister of the Russian Federation - International Visits

    Prime Minister of the Russian Federation - International Visits

    Third. Excessive dependence on a single reserve currency is dangerous for the global economy. I think it is clear to everyone now. Consequently, it would be sensible to encourage the objective process of creating several strong reserve currencies in the future. It is high time we launched a detailed discussion of methods to facilitate a smooth and irreversible switchover to the new model.


    In our opinion, we must first atone for the past and lay our cards on the table, so to speak.
    This means we must assess the real situation and write off all hopeless debts and "bad" assets.
    True, this will be an extremely painful and unpleasant process. Many will be unwilling to accept such measures, fearing for their capitalisation, bonuses, or reputation. However, we will "conserve" and prolong the crisis if we do not clean up our balance sheets. I believe financial authorities must work out the required mechanism for writing off debts, one that corresponds to today's economic needs.
    Second. Apart from cleaning up our balance sheets, it is high time we got rid of virtual money, exaggerated reports, and dubious ratings. We must not harbour any illusions while assessing the state of the global economy and the real corporate standing, even if such assessments are made by major auditors and analysts.
    In effect, our proposal implies that the audit, accounting, and ratings system reform must be based on a return to the fundamental asset value concept. In other words, assessments of each individual business must be based on its ability to generate added value, rather than on subjective concepts. In our opinion, the economy of the future must become an economy of real values. How to achieve this is not so clear-cut. I have no explicit answer. Let us think about it together. After all, this is what such forums as this are convened for, thanks to Mr Schwab.
    Third. Excessive dependence on a single reserve currency is dangerous for the global economy. I think it is clear to everyone now. Consequently, it would be sensible to encourage the objective process of creating several strong reserve currencies in the future. It is high time we launched a detailed discussion of methods to facilitate a smooth and irreversible switchover to the new model.
    Fourth. Most nations of the world convert their international reserves into foreign currencies and must therefore be convinced that they are reliable. Those issuing reserve and accounting currencies are objectively interested in their use by other states.
    This highlights mutual interests and interdependence.
    Consequently, it is important that reserve currency issuers must implement more open monetary policies. Moreover, these nations must pledge to abide by internationally recognised rules of macroeconomic and financial discipline. In our opinion, this demand is not excessive.

    I would be interested to see what our professor don1 would say about this, especially about the bolded part, as it look very attractive to me.

    Unfortunately, we are increasingly hearing the argument that an increase in military spending could solve today's social and economic problems. The logic is simple enough. Additional military allocations create new jobs at the initial stage. This is evident.

    At a glance, this sounds like a good way of fighting the crisis and unemployment. This policy might even be quite effective in the short term. But in the longer run, militarisation won't solve the problem, but rather will quell it only temporarily. What it will do is squeeze huge financial and other resources from the economy instead of finding better and wiser uses for them.

    My conviction is that reasonable restraint in military spending, especially coupled with efforts to enhance global security, will certainly produce significant economic dividends.


    I need don1 to translate other Putin's statements on the financial matters so that even an UN can understand.

    Don what is he saying?

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