11/09/09 Stockholm, Sweden – George Soros, Chairman of Soros Fund Management, has written a piece that examines the “stark choice” between “international capitalism,” which he sees as the flagging US model, and “state capitalism,” represented by a rising China. To him neither of these two options is ideal, and he looks instead towards the development a new multilateral system.
His editorial is strongly supportive of the expanded usage of IMF Special Drawing Rights (SDRs), and the vigor of his enthusiasm seems bearish for the dollar. He recommends international cooperation along the lines of a second Bretton Woods conference for the development of a new financial architecture built around modified SDRs. Three of his key suggestions are:
* No single currency should have unfair advantage
* The range of currencies should be expanded and should include the renminbi
* SDRs will allow for the international creation of money, especially during crises
The editorial in its entirety has a number of tough to swallow and, depending on your perspective, disagreeable concepts, all of which serve to make it a particularly interesting read. Most importantly, it does not provide a particularly bullish outlook for the dollar. Project Syndicate provides the full content, an insightful look at Soros’ new world architecture perspective.
Rocky Vega
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let’s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
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The denials in congress are going to get harder to believe by the proletariat. Doesn’t take a crystal ball to see trouble ahead.
Ahhh…George S – still looking for a third way. And wealthy enough to start one.
At least one whose whose currency he can continue to exploit
Great! The world’s elite have figured out the problem… all of this happened because of too many central banks. Solution?
ONE central bank for the entire globe. If they succeed in doing this, give it about 50 to 100 years before they throw the entire planet into a new Dark Age.
Unreal.