Geithner kinda backs world reserve currency

Tom James @ 27-03-2009

euro_coinsHighlighted because I have a penchant for old school technocracy that can only be assuaged by stories of mass graves and pyramids of skulls.

Here we have news of US Treasury Secretary Tim Geithner hinting support for a global reserve currency run by the IMF:

The Chinese proposal, outlined this week by central bank governor Zhou Xiaochuan, calls for a “super-sovereign reserve currency” under IMF management, turning the Fund into a sort of world central bank.

The idea is that the IMF should activate its dormant powers to issue Special Drawing Rights. These SDRs would expand their role over time, becoming a “widely-accepted means of payments”.

Mr Geithner’s friendly comments about the SDR plan seem intended to soothe Chinese feelings after a spat in January over alleged currency manipulation by Beijing, but he will now have to explain his own categorical assurance to Congress on Tuesday that he would not countenance any moves towards a world currency.

New World Order anyone?

[image from helmet13 on flickr]