Falling Dollar (abridged) cw English Subtitles

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Russia's national Channel 3 interview formcos leading international tax expert on the economic crisis and the decline of the dollar as a reserve currency on the 1 year anniversary of the economic downturn.

Thanks to Channel 3 & Irina Bliznjuk

An unhappy anniversary for the United States: exactly one year before the extent of the global financial crisis made itself clear. Those experts who believe that the crisis is far from over point to a report compiled by the United Nations. The Dollar is now receiving criticism from the highest level of the global community. What is behind it? Irina Bliznuk reports:

Bliznjuk:: If your television drama's ratings are suffering and your main character's popularity is on the wane, it's simple - you kill them off, you write them out of the show. World policy is rarely likened to a soap opera but in order to improve world economic affairs main players are ready to sacrifice the Dollar. The United Nations has called for reconsideration of its role as world reserve currency.

Bulakh: From the moment the United Nations statement was made, representatives of Swiss banking circles had already answered the question of the role of the Dollar in the modern world. They have declared that the USA lives only at the expense of the emission of the Dollar and therefore is not attractive as a place for investment for the rest of the world anymore.. The last auction at the end of August for US treasuries has actually failed. Very few foreign investors want to buy US IOU notes anymore.

Bliznjuk: The existing system with the domination of one currency is inefficient, it is hindering economic development, admits the United Nations report, and is a genuine reason for the current economic crisis.

Bulakh: The Position of Russia should be to move away from discussions concerning the general welfare of mankind, where participants cover their own selfish interests. Russia should think about its own future. And the future of Russia is in the creation of a regional currency. It is necessary to lift our own country from ruins, to strengthen the protection of the central bank and the regional currency because this is exactly what all capable countries are preparing for. The future most probably is for regional currencies. It is unlikely that transition to global reserve currency will happen at this moment or even in a few years. To realise this would be a very difficult business.

Bliznjuk: One version of the new multi-polar world is that national currencies will be united together with regions. For example the Dollar will merge with the Yen and become Chi-merica. Mexico, Canada, Japan, South Korea, Australia and the countries of the ASEAN will join Chi-merica. Europe and Russia can form a country named EuRussia where the CIS countries will join also.

Bulakh: An introduction of uniform global currency is a good intention, only America and many other countries oppose this initiative. I do not think that this idea was serious. Most likely Russia, China and France, who usually stand up for all important initiatives, would simply try to despoil results of studies on the future of the Dollar and their reserves saved in Dollars. It is interesting for them to understand the reaction of America and to hear all arguments and offers.

Category:

News & Politics

Tags:

• International tax planning
• International Trusts
• Russia
• Business
• Economics.