Wednesday, March 2, 2011

FRANCE A New Global Finance System in the Making?

France, as current head of the Group of 20 countries, will help the transition to a global financial system based on ‘several international currencies,’ French Economy Minister Christine Lagarde said.
Lagarde, speaking ahead of a G20 finance ministers meeting in Paris, said the world had to move on from the ‘non-monetary system’ it now has to one ‘based on several international currencies.’
Accordingly, France wants to see less need for countries, especially the emerging economies, to accumulate huge foreign reserves, she said.
At the same time, international capital flows should be better regulated and the role of the Special Drawing Rights issued by the International Monetary Fund should be reinforced by the inclusion of China’s yuan in the system.
China, whose booming economy now ranks second only to the US in size after overtaking Japan, has accumulated massive forex reserves of more than $2.5 trillion on the back of its sustained trade surpluses and foreign fund inflows.
Washington says the build-up reflects an unfair undervaluation of the yuan, a charge Beijing rejects.
France has previously said it wanted to see the global financial system reduce its reliance on the dollar for a more broad-based arrangement., 14 February 2011

The US dollar has been entrenched as the global currency since the Second World War. But with globalism virtually exploding, it becomes more and more evident that another more reliable financial vehicle should be created. With the euro in temporarily insecure waters, the US dollar at this time would be difficult to replace.
One thing we do know for sure, the entire world financial and economic system will be united more closely with each coming year. Nevertheless, in the end, the greatest catastrophe will happen as described in the book of Revelation. It will place all previous financial and economic catastrophes in the shade. The total collapse of the world system is part of the Great Tribulation, “For then shall be great tribulation, such as was not since the beginning of the world to this time, no, nor ever shall be” (Matthew 24:21).

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