I agree with Bank of England chief; A Libra-like currency makes the most sense in a multi-polar world

Ideas for a new global currency emerge as the elites engineer global economic disaster…
  • Led by Trump and Xi, the world is racing toward a manufactured economic disaster, and this multi-scene act is still unfolding
  • BOE governor, Mark Carney, says global economic order needs dramatic revamp and sees benefits to markets, economies from a multipolar system
  • Carney says that a Libra-like virtual currency would suit a multipolar world
  • The Libra would be backed by a basket a national currencies via sovereign debt holdings
  • Current world order hierarchy would remain intact under such a scenario
  • With the U.S. threatening to close its borders with trade, the dollar can no longer serve as the reserve currency (Triffin paradox)
  • U.S. Fed, with its willfully ignorant and relatively tight policy, is effectively refusing to supply the needed dollars around the world when the countries need them the most.
Given the restricted dialectic process, the Libra will emerge as the logical choice in a multi-polar world as the answer to dollar hegemony

Mark Carney laid out a radical proposal for an overhaul of the global financial system that would eventually replace the dollar as a reserve currency with a Libra-like virtual one.

Just a few months before he steps down as Bank of England governor, Carney offered his vision for the international economy at a time of sweeping change. Trade wars and the threat of currency wars are hurting growth and upending multilateral cooperation, while central banks are trapped in a low interest-rate world as they struggle to revive inflation.

“The combination of heightened economic policy uncertainty, outright protectionism and concerns that further, negative shocks could not be adequately offset because of limited policy space is exacerbating the disinflationary bias in the global economy,” Carney said. “What then must be done?”

Speaking to fellow policy makers and academics at the U.S. Federal Reserve’s annual symposium in Jackson Hole, Wyoming, he said that in the short term central bankers must deal with the situation as it is. But he also warned that “blithe acceptance of the status quo is misguided,” and dramatic steps will ultimately be needed.

His most striking point was that the dollar’s position as the world’s reserve currency must end, and that some form of global digital currency — similar to Facebook Inc’s proposed Libra — would be a better option. That would be preferable to allowing the dollar’s reserve status to be replaced by another national currency such as China’s renminbi.

Carney Urges Libra-Like Reserve Currency to End Dollar Dominance – Bloomberg, August 23rd

As the world hurtles towards economic disaster, potential answers for a new global currency are slowly emerging, and Facebook’s Libra offers the most promise. Though Facebook’s public perception is poor at the moment, three billion people actively use its set of apps, so the Libra has the potential to be the dialectic answer for the global currency. The concept and strategy behind the Libra is a very sound one and the only hindrance holding its usage back is public perception. I submit that over time, this will change and the public will accept it.

We have discussed in the past that the other alternatives will never cut it. We must keep in mind that the global financial and economic system is a well-managed one, and that any suggestion for a dollar replacement that could undermine the existing global hierarchy will never be accepted as a choice. In the next stage of the new world order, other national currencies like the yuan will not provide the solution. Bitcoin and gold will never be used either. I say this, because these alternatives have too many limitations, given the dialectic process unfolding.

The IMF’s Special Drawing Right (SDR) can never work in its present form as the claims on the SDR do not rest with the IMF, but with the countries that print the currencies that back the SDR. This stands in contrast with the Libra; the claim on the Libra rests with the Libra.

At the end of the day, the Facebook Libra may not actually be the replacement to the dollar and the national currencies, But an identical type of coin will be. It has to be and it is the only answer.