While demand is made for new “global currency,” the world’s wealthiest are buying gold “by the ton”

It’s being reported in the Financial Times that there’s a global call for a new global currency.

Call for new global currencies deal

The world’s leading countries should agree a new currency pact to help rebalance the global economy, a leading association of financial institutions has urged.

The Institute of International Finance, which represents more than 420 of the world’s leading banks and finance houses, warned on Monday that a lack of such co-ordinated rebalancing could lead to more protectionism. Charles Dallara, IIF managing director, said: “A core group of the world’s leading economies need to come together and hammer out an understanding.”

Last week, Guido Mantega, Brazil’s finance minister, warned of the dangers of a “currency war” as countries unilaterally intervened to prevent the appreciation of their currencies. The US has been pressing China to allow its exchange rate to rise faster, while several countries including Japan, South Korea, Brazil and Switzerland, have been intervening to hold their currencies down.

I suppose a global currency is inevitable. After all, a global marketplace demands a uniform currency. In the meantime, it’ll create a bit of a jittery attitude among everyone; and the governments are doing a great job at exasperating the problems.

Continue