The United Nations would like the dollar, euro, yen, and other national currencies to be succeeded by a new “global currency.”
That recommendation appears in a U.N. report released this week, which suggests the dollar’s outsize role in international finance has ended — and says that it’s time to invent a successor currency that would be managed by a “Global Reserve Bank.”
Countries could “agree to exchange their own currencies for the new currency, so that the global currency would be backed by a basket of currencies of all the members,” says the 218-page report from the U.N. Conference on Trade and Development.
Keep in mind that this is a U.N. report written by bureaucrats without any actual legal ability to create the global equivalent of the Federal Reserve. Anyone who remembers how a U.N. agency once called for a global e-mail tax of one cent per 100 e-mail messages — but didn’t exactly get it — can attest to that.
The concept of a single worldwide currency has been suggested since the 16th century, and came close to being instituted after World War II — yet the idea remains little more than that. Proponents argue that a universal currency would mean an end to currency crises like Zimbabwe’s. A single currency wouldn’t be subject to exchange rate fluctuations because there would be no competing currencies to exchange against. In other words, a universal currency would lose its value as a commodity bought and sold on open markets and would have value only for its worth in buying other commodities