By Jerome R. Corsi
 Robert Mundell |
A plan to replace the dollar with a world currency originated with Columbia University
economics professor Robert Mundell, who won a Nobel Prize in economics in 1999 for creating the euro and is now widely regarded as 'the father of the euro.'
economics professor Robert Mundell, who won a Nobel Prize in economics in 1999 for creating the euro and is now widely regarded as 'the father of the euro.'
Mundell, currently an economic consultant to China, is the originator of the suggestion that the International Monetary Fund should utilize Special Drawing Rights, or SDRs, to replace the dollar as a new standard for holding foreign exchange reserves in international trade transactions.
SDRs are international reserve assets calculated by the IMF in a basket of major currencies allocated to the IMF's 185 member nation-states in relation to the capital. The assets are largely in gold or widely accepted foreign currencies the members have on deposit with the IMF.
As far back as June 2008, Mundell was telling Reuters a major dollar crisis would come within five years, and China was discussing with him proposals to reform the global monetary system.
'There's no doubt about it that inside the Chinese government there's a lot of discussion going on,' Mundell told Reuters. 'I'm not sure how they're doing it, but I know they're going to get input from me.'
In the interview, Mundell went so far as to speculate the Chinese-recommended solution would involve the IMF.
Aspiring to be the father of a global currency, Mundell has argued, 'What you need to have is an International Monetary Fund that's going to take some of these excess dollars (such as held by China in foreign exchange reserves), put them into a substitution account inside the IMF or some other institution and then use that to create what is a new international currency.' ....
