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Russia’s Medvedev Tries for One World Currency

June 20, 2010

David Wilcock cites the Drudge Report on Medvedev’s attempts to shanghai the “New World Order” by issuing a world reserve currency.

Below is an image of that currency and following it are two stories on Russia’s attempts to assume a leading role in the global economy.

If the galactic and spirit teachers speak the truth, then all will be for naught.

New Russian coin

Medvedev Pushes Ruble Reserve Currency to Cut Dollar Dominance

June 18, 2010, 4:02 PM EDT

By Paul Abelsky

Business Week

June 19 (Bloomberg) — Russia wants the ruble to be one of the world’s reserve currencies as President Dmitry Medvedev renews his push to reduce the dollar’s dominance and make Moscow a global financial hub.

“Only three, five years ago it seemed like a fantasy” to create a new reserve currency, Medvedev said yesterday in a speech in St. Petersburg, Russia. “Now we are seriously discussing it.”

Medvedev, who has repeatedly called for a supranational currency to match the dollar, said discussions with China are continuing on broadening the global options. Russia sold U.S. Treasuries for a fifth consecutive month in April, the U.S. Treasury Department said June 15. The world may need as many as six reserve currencies, Medvedev said.

“It’s something that’s obviously needed,” he said at the St. Petersburg International Economic Forum. “Developing a financial center in Moscow will considerably help to strengthen the ruble’s position as one of the reserve currencies.”

Medvedev’s comments underline Russia’s ambition to reassert its global power following the financial crisis. Gross domestic product shrank 7.9 percent last year, the worst contraction since the fall of communism in 1991, after the credit crunch sent commodity prices plunging.

If a country wants to alter the world economic order, including the number of reserve currencies, it must become an international financial center, Bank of Israel Governor Stanley Fischer said in an interview yesterday.

‘Don’t Emerge by Fiat’

“For a currency to be a reserve currency, you have to have capital markets in which you can sell it and buy it very easily,” Fischer said. “New reserve currencies don’t emerge by fiat. They emerge as countries change.”

Medvedev said he envisages a new economic hierarchy allowing emerging-market giants such as Russia and China to drive the global agenda as the world emerges from the first global recession since the 1930s.

“We really live at a unique time, and we should use it to build a modern, prosperous and stron Russia, a Russia that will be a co-founder of the new world economic order,” he said.

The BRIC countries — Brazil, Russia, India and China — were net sellers of U.S. assets in April, driven mainly by Russian divestments, Brown Brothers Harriman & Co. Senior Currency Strategist Win Thin said in a June 15 note.

Russia may add the Australian and Canadian dollars to its international reserves as the central bank diversifies the world’s third-largest stockpile away from the greenback, central bank First Deputy Chairman Alexei Ulyukayev said in a June 16 interview.

Though Russia is “very carefully monitoring what’s happening in the euro zone,” the emergence of the euro as a currency to rival the dollar’s dominance helped soften the impact of the global crisis, Medvedev said.

“If the world depended completely on the dollar, the situation would have been more difficult,” Medvedev said.

–Editors: Tasneem Brogger, Willy Morris.

Medvedev sees chance for new world order

By Catherine Belton, Charles Clover and Courtney Weaver in St Petersburg


June 18 2010

Dmitry Medvedev, the Russian president, said Moscow was bidding to help lead efforts to build a new world economic order after the old system collapsed in the global financial crisis.

Opening Russia’s annual economic forum in St Petersburg where hundreds of global chief executives have flocked, Mr Medvedev said the renewed interest in Russia this year was a sign of a changing world in which the institutions of the western-dominated world order had had their day amid thousands of corporate defaults and the threat of sovereign defaults.

“What had seemed untouchable has collapsed. The bubbles that created the illusion of flourishing economies have burst,” Mr Medvedev said. “For Russia this situation is a challenge and an opportunity. We are living in a unique time. And we should use it to build a modern, flourishing and strong Russia … which will be a co-founder of the new world economic order and a full participant in the collective political leadership of the post-crisis world.”

Mr Medvedev insisted “Russia has changed” in the past year as it sought to pursue a course of “smart politics” that would leverage its competitive advantages in the raw materials sector, while shifting emphasis towards modernising the economy and focusing on boosting innovation over resources.

Acknowledging that the country still had a great deal to do to meet these aims, Mr Medvedev laid out a series of new initiatives that aim to boost its attractiveness as an investment destination. “Russia needs a real investment boom”, in order to achieve its modernisation goals, he said. To stimulate that, Mr Medvedev announced Moscow would introduce zero taxation on capital gains for companies working on long-term investments starting from January next year and said Russia was improving the legal system to provide better protection for businesses against the long arm of bureaucracy.

He added Russia had already simplified migration procedures to help attract “highly-qualified specialists” working in investment and high-tech sectors into the country.

Responding to criticism that Russia’s approach to building an innovation economy was driven from the top down and state interference could hinder development, Mr Medvedev said the state would concentrate its efforts on fostering a good business climate. “No matter how many state-owned companies we have, modernization will happen, above all, through private business. And only if there is competition,” he said. “The state should not tear down the apples from the tree of economics. What the government should do is help grow our apple orchard, develop our economic environment.”

Mr Medvedev said he was cutting the list of strategic enterprises five fold in order to reduce the role of the state in the economy and foster more private initiatives.

3 Comments leave one →
  1. July 14, 2010 11:53 pm

    May I just add that a specific, important infrastructural element of the Moscow International Finance Center may have already existed for at least 5 years – the conditional unit of accounts in Russia and other CIS countries as an approximate average between the rates of exchanges of US$ and the Euro towards Russian Ruble and other CIS national currencies.

    The Central Bank of Russia calls it the bimonetary basket, consisting of 55 US cents and 45 Euro cents. In fact this unit of accounts has been practically used in unofficial currency convertors, defining the rates of exchange of CIS national currencies towards each other.

    Now the issue of direct official quotations of those currencies has been raised, while presumably, the mechanism will remain generally the same. The conditional unit of accounts exists de-facto and some time ago it was suggested it be called Federal Ruble or abbreviated – FRU.

    Creating the Moscow International Finance Center calls for legalising this unit of accounts initially by the Center itself in order to create a rather objective and stable instrument in evaluating at the CIS regional level bonds and shares beside creating official mechanism for the CIS currency quotations and convertability with the help of the Interstate Bank.

    Probably in the future the Bank will create its larger capital including the CIS national currencies under a total evaluation and nomination in Federal rubles.

    Thank you

  2. July 11, 2010 9:54 am

    Thanks a lot for the material above.

    For a comprehensive history of money in Russia from the VIIIth century until the present time, please, adress this author”s Ebook with LuLu “Modern Essays on the history of money in Russia”

    Dr. Valeriy Popyrin

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