UN calls for new reserve currency... Oct 7, 2009
Speaking at the annual meetings of the International Monetary Fund and World Bank in Istanbul, he said: "It is timely to emphasise that such a system also creates a more equitable method of sharing the seigniorage derived from providing global liquidity.". He said: "Greater use of a truly global reserve currency, such as the IMF?s special drawing rights (SDRs), enables the seigniorage gained to be deployed for development purposes," he said. (The Drudge Report)
What makes a global financial centre? Aug 15, 2009
The first is seigniorage, which is the fact that anyone who issues currency is actually borrowing money without interest. All central banks earn seigniorage from the currency issue ... Therefore, the country that issues a global reserve currency enjoys seigniorage from foreigners who hold its currency. (The Star Online, Malaysia -- Business)
Japan Jul 5, 2009
COMMENT American politicians and central bankers since Ronald Reagan have abused what amounts to seigniorage covering the whole planet. Often overlooked is the degree of Japanese complicity and the danger that Japan, holder of trillions of US dollars, now faces. (Asia Times Online)
Is global money good for Asia? May 9, 2009
The issuing nation benefits from the seigniorage from the issue meaning that the country could earn from the interest rate earned on the currency issue, since the cost of printing money was almost zero ... Such a global role can have its benefits, because of the seigniorage profits, but it can be highly costly if the issuing country has to print money not for itself, but for the rest of the world ... Thus, a global issuer has to sacrifice its own national interests for global interest, and it... (The Star Online, Malaysia -- Business)
Prolonged global winter Apr 8, 2009
Even compared with other recessions within living memory, such as 1974 and 1982, the reaction from the global political class has been notably panicky and hysterical - US$5 trillion of global stimulus programs, largely consisting of public spending, are unlikely to increase the stability of the global economy, and nor are the moves by three of the world's four most important central banks to "quantitative easing'' - the monetary policy of the early Weimar Republic. Under Weimar, the profits from... (Asia Times Online)
