Asian countries call for global currency

Monday, April 6, 2009

Leaders and central banks in Russia, China, Malaysia, Indonesia, Thailand, and Kazakhstan have called for an international currency system.

Speaking on April 1 in advance of the G-20 summit in London, Russian president Dmitry Medvedev argued that the international finance system needed a “new construction” including “new currency systems”, saying that such a new system could be the purpose of a revamped IMF and World Bank. The IMF was originally founded in 1946 as the overseer of the Bretton Woods system, which from its founding until the 1970s tied the western world’s currencies to the US Dollar, which was in turn backed by gold. Russia’s proposal was for the new currency to serve as a reserve currency, one which would take the place of the dollar, euro, and other heavily-traded currencies as an international standard of exchange.

Medvedev’s comments are a reversal of Russian position from a lukewarm response following a looser outline for a worldwide currency by Kazakhstani president Nursultan Nazarbayev. On March 11, Nazarbayev suggested the establishment of the “acmetal”, a portmanteau of “acme” and “capital“, as a reserve currency replacing the ruble in international transactions, first for Central Asia and then worldwide. 1999 Economics Nobel laureate Robert Mundell, speaking to the Daily Telegraph, endorsed the idea, saying “It would be a very good idea if the G-20 took that idea up in London”.

2001 Nobel economics prize winner Joseph Stiglitz, meanwhile, said the new currency could come about quickly if it was based on an expansion of the IMF’s already established system of Special Drawing Rights, units of exchange used by the IMF which already have some of the features of currency. Stiglitz argued that, as the US dollar has become the standard global reserve currency, it has inadvertently created a system which hurts the world economy. “It’s a net transfer, in a sense, to the United States of foreign aid,” he argued, reasoning that when other countries purchase US dollars in order to use them on international markets (such as for the buying and selling of petroleum), they effectively give the US a zero-interest loan — sometimes at times when they can least afford it. Stiglitz made his comments as head of a United Nations panel of economists giving recommendations to address the global financial crisis.

In the weeks leading up to the G-20 conference, the People’s Republic of China also began discussing a new system for reserve currencies. In a March 23 speech, Zhou Xiaochuan, governor of the People’s Bank of China, endorsed a new reserve currency, saying “the desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.” Zhou went on to endorse the expansion of the SDR system in the long-term creation of a reserve currency government by the IMF. While Zhou did not mention the US dollar specifically, analysis by Qu Hongbin, chief China economist for HSBC, for the Financial Times said that the speech “is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money”.

China holds $740 billion as assets; inflation in the US economy, which has been low in recent years, would directly cause those assets to lose value.

While the Chinese government has engaged in currency swaps with several other growing economies, such as South Korea, Argentina, Malaysia and Indonesia, the Chinese Yuan cannot be used itself as a reserve currency as it cannot be freely traded on the global market.

The Chinese-Russian proposal was not entered onto the agenda at the G-20 meeting itself. Nonetheless, British Prime Minister Gordon Brown said that the G-20 was open to considering the proposal if and when a detailed one is presented. United States President Barack Obama, meanwhile, endorsed the continuation of dollar supremacy, saying that the US dollar is “extraordinarily strong” and arguing that its strength was the result of the intrinsic stability of the United States economic and political system; US treasury secretary Timothy Geithner had, the week before, made comments that while he supported an expansion in the SDR mechanism he rejected the idea of a global currency. Rather than change the role of SDRs, the G-20 meeting instead added $250 billion in support to the fund backing SDRs.

After the G-20 conference ended on Thursday, Malaysia’s The Star BizWeek reported that the central banks of Indonesia, Malaysia and Thailand had endorsed the Chinese proposal. All three countries have close economic ties with China and suffered heavily from the collapse of their currencies in the 1997 Asian Financial Crisis; the sudden growth in the value of the US dollar relative to those countries’ native currencies sharply increased debt in Southeast Asia’s economies, leading to a wave of bankruptcies.

International reaction from other economies has been mixed and guarded. Luiz Inacio Lula da Silva, President of Brazil, said that the currency proposal was important to discuss but did not give extensive comment. And while UPI reports that India supported the SDR proposal at the G-20 conference, the Indian Press Trust quotes Indian Prime Minister Manmohan Singh as saying last month, “It is too early to talk about common currency.”

Calls for an independent global reserve currency are not new. In 1944, John Maynard Keynes proposed the “bancor“, a unit like the SDR supported by a basket of commodities. Keynes’ idea was rejected and the US dollar took the equivalent role under the Bretton Woods system. Keynes proposed that the bancor system would be reinforced by a tax on participating countries’ current accounts, the difference between their exports and their imports, in order to encourage balanced trade. Meanwhile, monetary unions have become more popular since the end of the gold standard, with most of the European Union now trading the euro, and several countries outside the EU using it as a de facto currency; five West African countries adopting the eco at the end of this year; and the African Union planning to introduce the afro in 2028. Proposals for a North American currency union based around the so-called “amero” have been frequently discussed as the focus of conspiracy theories in the United States, but none of the US, Canada or Mexico have actively pursued the establishment of any such monetary union, however the dollar is the currency of several Latin American countries.

Friday, May 1, 2009

The American auto company Chrysler filed for bankruptcy Thursday, however a deal with European auto maker Fiat went through. The emerging Chrysler will be owned 55 percent by the United Auto Workers, eight percent by the United States Government, two percent by the Canadian Government and Fiat would begin with a 20 percent share.

Chrysler Chief Executive Robert Nardelli will step down when the bankruptcy proceedings are finalized.

Initially, the Italian company, Fiat, will appoint three members on the emerging Chrysler’s new board, and the United States government will appoint six. Fiat can assume the majority of the ownership upon repayment of American loans.

Chrysler administrators expect that the bankruptcy should take a couple of months.

“We expect this to be a very short, 30-to-60-day bankruptcy process, during which the company will function normally,” a top administration official said, “People will be able to buy cars, they will have their warranties honored, and everything should go on normally.”

The bankruptcy filing indicated that Chrysler was in debt to 20 creditors to a tune of more than $10 million each.

Meanwhile, the deal with Fiat did go through, and Chrysler should have cars designed by Fiat out on the market by 2011.

“It’s a partnership that will give Chrysler a chance not only to survive, but to thrive in a global auto industry,” said American president Obama, “Fiat has demonstrated that it can build the clean, fuel-efficient cars that are the future of the industry.”

However, automotive analyst Erich Merkle has hesitations.

“History would show that alliances really don’t work that well,” Merkle said, “even though, no matter how good they may look on paper.”

The restructuring has been managed by Steve Rattner, a former investment banker, and the U.S. Government auto task force.

Obama has set three ultimatums before Fiat. Fiat should produce a 40 mile per gallon vehicle while managing the new Chrysler, transfer fuel efficient Fiat technology to Chrysler factories in the United States, and produce cars in Chrysler factories and distribute them in Europe.

Tuesday, July 17, 2007

Pittsburgh, Pennsylvania — Local caterers get ready for big business, as almost three thousand fans converge on the David L. Lawrence Convention Center over the Independence Day weekend for the world’s largest ever furry convention, Anthrocon 2007.

Many hope to renew acquaintances, or meet new friends. Others look to buy from dealers and artists, or show off new artwork or costumes. Some attend to make money, or even learn a thing or two. But one thing unites them: They’re all there to have fun.

Saturday, May 27, 2006

Seniors who haven’t been credited with passing the California High School Exit Exam won’t be getting diplomas when graduation ceremonies are held next month because the First District Appellate Court won’t hear the court case about the test until July 25.

The attorney for the students suing to block use of the test says he still expects to prevail.

“This case is far from over,” said Arturo Gonzalez, the lead attorney in Valenzuela vs. O’Connell, in which Liliana Valenzuela, a Richmond High School student, and others sued to block the state’s use of the test as a graduation requirement, “We think there is a strong chance that students in the Class of 2006 will receive their diplomas, even if it is after commencement ceremonies. It is important that students not get discouraged. They have to stay in school and pass their classes.”

On May 12, Alameda County Superior Court Judge Robert Freedman agreed with Gonzalez’ argument that the state’s use of the test as a graduation requirement was unconstitutional because poor and minority students don’t have access to equal educational resources, and therefore don’t have equal protection under the law. He issued an injunction against the use of the test.

That injunction seemed to pave the way for those of the 47,000 seniors statewide who haven’t yet passed the test, but have completed all other requirements, to receive diplomas with their classmates at upcoming graduation events.

But State Superintendent of Schools Jack O’Connell quickly filed an appeal of Freedman’s ruling and asked the State Supreme Court to issue a stay of Freedman’s injunction. Earlier this week, the Court granted O’Connell’s request for a stay, allowing schools to deny diplomas to students who haven’t passed the test. The Court also ordered the Appellate court to hear O’Connell’s appeal of Freedman’s ruling against the test.

On Thursday, Gonzalez petitioned the Appellate Court to expedite their hearing of the case to as soon as next week, but today the court denied Gonzalez’ request and scheduled the case for a hearing on July 25.

In an email to the James Logan Courier, Gonzalez said he thinks his case is strong enough to withstand the appeal. “We intend to vigorously defend Judge Freedman’s ruling,” he said, “The record strongly supports his decision.”

“If the court of appeals upholds Judge Freedman’s ruling, students in the Class of 2006 may still receive their high school diplomas,” he said.

About 70 seniors at James Logan High School in Union City, Ca., mostly minorities and those who are learning English, still need to pass the test.

O’Connell, an avid defender of the test, which is required by a law he wrote and championed when he was in the state legislature, said this week that he would make sure school districts knew that they had to require the test be passed in order to hand out diplomas to students.

“I will communicate with districts today to ensure they are aware that the exit exam is a graduation requirement” he said, “Students who have worked hard to pass this exam will be given a diploma that signifies their mastery of essential skills in reading and math.”

This article is based on No Diplomas for Now; Exit Exam Appeal Must Wait by Patrick Hannigan of The James Logan Courier, which has a copyright policy compatible with our CC-BY 2.5. Specifically “Creative Commons 2.5 Share-Alike license“

Sunday, November 14, 2010

A father shot his two daughters and wife, then committed suicide yesterday in Erie, Western Pennsylvania according to police.

The Erie police responded to a call from the house at 11 a.m. on Saturday and found a 29-year-old man, a 27-year-old woman and two children, ages four and seven dead of gunshot wounds. A two-year old boy was hospitalised with minor injuries; he was reportedly shot in the ear.

A resident, Kevin Klino, who lives one block away from the crime scene and heads the Citizens Reunited Against Crime group told the Associated Press, “I was outside just leaving my house when I heard gunfire, four, five, or six shots… and seconds later, cop cars came flying by.” Klino was quick to talk to the police and informed the community that a gunman was not on the loose, rather, a suspected murder-suicide.

Klino also added, “This is an impoverished neighborhood with a lot of good people in it. People were just walking through the neighborhood stunned. It’s not even a tragedy, it’s worse than that… when you’ve got kids involved, it just numbs you, shocks you”

Sunday, September 30, 2007

Evan Wolfson, the founder of the modern gay marriage movement, tells the waiter he would like an iced decaf and “the usual.” Wolfson, one of Time Magazine’s Most Influential People in the World, is a man who unflinchingly knows what he wants and stays his course, whether it be in his choice of restaurant or in his choice of battle. And others always know when they see Evan coming what it is that he wants.

Since his time at Harvard Law School when he wrote a paper on the topic, what Wolfson wants is the right for gay people to marry. The issue gained national prominence in 1993 when the Hawaii Supreme Court held in Baehr v. Lewin that the government had to show a reason for the denial of the freedom to marry, not just deny marriage licenses to the plaintiff gay couples. Wolfson was co-counsel in the historic 1996 Hawaii trial in which he argued that the government does not have a sufficient reason for excluding same-sex couples from marriage. In 1999, Wolfson contributed to Baker v. Vermont, the case that led to the creation of civil unions; advised the lead attorneys in Goodridge v. Department of Public Health, the case that led to same-sex marriage in Massachusetts; and since 2003, when he founded the primary umbrella organization coordinating the efforts to win marriage for gay people, Freedom to Marry, Wolfson has played a role in every marriage equality case in the United States. He is the movement’s founder and leader, and his focus remains square on winning that right. “For years,” said Matt Foreman, executive director of the National Gay and Lesbian Task Force, “many of us were saying to him, ‘We’re not ready. The country’s not ready. And, by the way, you’re crazy.'”

When I make a statement to him about his devoting his life to gay marriage, he corrects me: “I’ve played a part in cases that span the entire spectrum of eliminating gay people’s exclusions and limitations on who gay people are, and I’ve also written on immigration and economic justice, and I have worked on cases involving race discrimination in jury selection and women’s inequality. I don’t think one has to pick one of these things; they work together.”

Indeed, he has. Wolfson was lead counsel before the Supreme Court in Boy Scouts of America v. Dale, the case arguing against the expulsion of gay scoutmasters. As an intrepid young assistant district attorney in Brooklyn, Wolfson worked on People v. Liberta to end the exemption that allowed women to be raped by their husbands legally, a right in New York State as early as 1984. And he helped end the practice of choosing jurors based upon their race.

Wolfson’s entire career has been at the center of the most explosive legal and cultural issues of the last 30 years in the United States, and his influence has been profound. David Shankbone sat down with him to discuss some of the recent decisions affecting gay marriage, gender in marriage and reactions in the gay community to his fight for their rights.

Monday, February 12, 2007

Cars drove home the big prize last night, from the 34th Annual Annie Awards. The animation industry’s highest honor, ASIFA-Hollywood’s Annies recognise contributions to animation, writing, directing, storyboarding, voice acting, composing, and much more.

As mentioned, Pixar took home the big prize last night, after facing stiff competition from four other Happy Feet, Monster House, Open Season, and Over the Hedge.

But the biggest winner of the night didn’t get a “Best Animated Feature” nod at all. Flushed Away won five feature animation categories including Animated Effects (Scott Cegielski), Character Animation (Gabe Hordos), Production Design (Pierre-Olivier Vincent), Voice Acting (Sir Ian McKellan as Toad), Writing (Dick Clement, Ian La Frenais, Chris Lloyd, Joe Keenan, and Will Davies).

Over The Hedge won awards for Directing (Tim Johnson and Karey Kirkpatrick), Storyboarding (Gary Graham), and Character Design (Nicolas Marlet).

Of little surprise, Randy Newman won an Annie for Cars in the “Music in an Animated Feature Production” category. Newman has won many Oscars for his movie music, and has a nomination this year for the song “Our Town”. Newman didn’t attend the Annies, instead picking up a Grammy for “Best Song Written For Motion Picture, Television Or Other Visual Media”.

DisneyToon Studios’ Bambi II won “Best Home Entertainment Production”, while “Best Animated Short Subject” went to Blue Sky Studios’ No Time For Nuts, which is based on Ice Age.

“Best Animated Video Game” went to Flushed Away The Game, while a United Airlines ad named “Dragon” won a “Best Animated Television Commercial” Annie for DUCK Studios.

Saturday, January 29, 2011

U.S. Prohibition Party presidential candidate Jim Hedges of Thompson Township, Pennsylvania took some time to answer a few questions about the Prohibition Party and his 2012 presidential campaign.

The Prohibition Party is the third oldest existing political party in the United States, having been established in 1869. It reached its height of popularity during the late 19th century. The party heavily supported the Eighteenth Amendment to the United States Constitution, which banned the sale of alcohol, and resulted in the US period known as Prohibition (1919–33). It was repealed in 1933. The party has declined since this period, but has continued to nominate candidates for the presidential election.

In 2003, the party split into two factions. Preacher Gene Amondson and perennial candidate Earl Dodge were nominated for the presidency by their respective factions. After Dodge’s death in 2007, the party reunified and named Amondson as its sole presidential nominee for 2008. During the election, Amondson was interviewed by Wikinews. He died in 2009, leaving an opening in the party for 2012.

Jim Hedges is a longtime Prohibition activist, who holds the distinction of the first individual of the 21st century (and the first since 1959) to be elected to a political office under the Prohibition Party banner. In 2001, he was elected as the Thompson Township tax assessor, and was re-elected to the post in 2005. He served until his term expired in 2010. Hedges declared his intent to run for the Prohibition Party presidential nomination on February 18, 2010. This marks his first run for the presidency.