The United Nations released a report Monday attacking free-market economics and the role of U.S. Federal Reserve notes in the world economy, while proposing increased centralization of global monetary and financial systems and more “solutions” to so-called “climate change.”

The financial crisis “supports the case for a more fundamental rethinking of global financial governance,” claims the report from the United Nations Conference on Trade and Development (UNCTAD). “In the discussion about necessary reforms of the international monetary and financial system, the problem of the United States dollar serving as the main international reserve asset has received renewed attention.”

The solution, according to the report, is the creation of a global reserve bank that would allow countries to deposit their Federal Reserve notes with the International Monetary Fund in exchange for a type of supra-national fiat currency known as "Special Drawing Rights" (SDRs). The SDRs could then be used to settle international payments.

"Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability," explained one of the authors of the report, Detlef Kotte.

Hiding behind the passive voice, the report proceeds to promote a sort of global Marxism and further wealth redistribution — for the good of the “global economy,” of course. Instead of SDR distribution being based on member states’ quotas, “it has been suggested that in order for the SDR to become the main form of international liquidity and means of reserve holding, new SDR allocations should be made according to the needs of countries.” It then promotes worldwide central planning to “stabilize global output growth” by issuing more SDRs or retiring them as the emerging global government deems necessary.

The UN body then goes on to suggest a system of controls for national currency exchange rates, emphasizing that debtor nations like the United States and countries with large surpluses like China and Germany create imbalances in global trade that should be corrected. "A viable solution to the exchange-rate problem would be a system of managed flexible exchange rates targeting a rate that is consistent with a sustainable current-account position, which is preferable to any 'corner solution,' " the report said. “But since the exchange rate is a variable that involves more than one currency, there is a much better chance of achieving a stable pattern of exchange rates in a multilaterally agreed framework for exchange-rate management."

Another suggestion offered in the report is the proposed creation of “regional payments clearance mechanisms that function without using the dollar,” supposedly to help avert financial and currency crises or “manage them better if they occurred.”

This is not the first time the global body has called for scrapping Federal Reserve Notes as the world’s international reserve currency. Another UN panel concluded earlier this year that talks for creating a new global system based on a “basket” of currencies should be undertaken. Over the last few months, Russia, China, and Brazil have also been clamoring for a new global monetary system.  

The report opened with a quote from John Keynes and featured frequent attacks on market mechanisms — without noting that current and past central bank manipulations and artificially set interest rates can hardly be considered laissez-faire. “The experience with this crisis proves that free financial markets do not lead to optimal social and macroeconomic outcomes, and suggests that the relationship between the State and market forces needs to be fundamentally reviewed,” a summary of report on the UNCTAD website claimed. "The most important lesson of the global crisis is that financial markets don't get prices right,"  explained Heiner Flassbeck, a director of the UN body and a co-author of the report. Apparently a global government would. “An initiative equivalent to Bretton Woods or the European Monetary System is needed,” Flassbeck told Bloomberg news.

More UN disdain of free markets was highlighted later, in the document’s section on climate change. “Emissions regulation and control have to be made more stringent” to be compatible with growth, the report argued.

Dissemination and development of “climate-friendly” technology “cannot be left to market forces alone; they also require strong and internationally coordinated government action.” According to the report, the alleged “urgent need” to reduce emissions calls for “direct government intervention” and “strict regulations.”

The UN admitted that this global system could not be created quickly. There needs to be time for “international consensus” and “multilateral institution building.” But would these so-called “solutions” really accomplish anything besides another giant step toward world government? Probably not.

The world is right to be angry with the Federal Reserve’s monetary policy, which led to the current crisis more than any other factor. Americans should be mad too. But the solution is obviously not to blame the “free market” or impose a monstrous banking system (essentially a central banking system that is larger and more powerful than the U.S. Federal Reserve) upon the entire world economy at the global level. The United States should abolish the Federal Reserve and halt all funding to the anti-American UN pending a complete withdrawal.

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Ben Gee said:

A world Currency? Europe has the Euro, Japan's new PM propose a united East Asian currency, why not a new world currency? Can we rely on the US to someday pay off its debt? At this point, the US is increasibg its debt. When will the US or when can the US start paying off its debt? Ever?

September 08, 2009

Flu-Bird said:

Evict the UN The UN wants to disarm us the UN wants to control us the UN is not for world peace the UN is a vulture posing as a dove

September 08, 2009

Bonnie said:

The United Nations is no friend of liberty "The Fearful Master - A Second Look at the United Nations" by G. Edward Griffin. The book is out of print, but you can find a used copy at Amazon.com. http://www.amazon.com/s/ref=nb...he+fearful Learn the origins of the UN. Learn about Katanga. Learn why MacArthur was removed from command. Learn why we should GET THE US OUT OF THE UN AND THE UN OUT OF THE US!

September 08, 2009

Patrick Henry said:

The UN does want peace!!! I am here to say boldly that the UN does want peace..... As long as the definition of peace is: "The end of opposition to communism." As I said elsewhere, the UN building looks just like a big tombstone, which is kinda freaky since that evil empire seeks for the death of our sovereignty.

September 08, 2009

Bonnie said:

Peace and safety For when they shall say, Peace and safety; then sudden destruction cometh upon them, as travail upon a woman with child; and they shall not escape. - 1 Thessalonians 5:3 We all know how the story is going to end. We just don't know when. We need to work to push this as far into the future as possible, and train our children and grand children to do the same.

September 08, 2009

still free said:

Get us out of the UN! Well said - Bonnie, Flu-Bird, Patrick Henry ... The UN is UN-American ... and here's the proof of how they continue to work to destroy us, inch by inch, year by year. Now do you believe us, the right-wing wackos? The conspiracy theorists? It can't get any clearer than this. Join us in the fight to save America. Freedom has an address! www.jbs.org

September 10, 2009

eddie68 said:

you guys just don't get it!!! Now Americans and even when they think they know still don't see the whole picture. They only see reality from a very narrow angel and have a very short memory. Now American complains that the UN is destroying America or taking over the country!!!! IT IS THE UNITED STATES WHO INVENTED THE UN YOU MORONS. Its offices are in New York since the date of its creation. Whoever runs the US runs the UN IT IS the same SECRET GOVERNMENT. What other nations has been complaining about for 60 some YEARS that the UN is being unjust and unfair and it existed only to serve the élites interests all over the world, and that the World bank sucked other nations resources and helped corrupted regimes to come or stay in power to serve its interests, you are now tasting some of what other nations has been suffering on the hand of UN/US That UN. The United States role as a world leader has to come to an end, not by the Stupid Taliban, not on the hand of Jihadists, not on the hand of Saddam Housien, but on the hand of its builders the "banks" its role is over and time for the UN to be in charge totally and completely. It will be very hard on the Americans to realize that their enemy is the same enemy of Iran, and Iraq and Syria, and Lebanon, and Venezuela, and Russia. The enemy is the UN and the World Bank, and who ever stands behind them.

September 13, 2009

K said:

about time Not so easy for USA to point fingest at the UN for not being for peace....the USA has bullied the world long enough, they need to be disarmed as they are the biggest threat to the world. Not just in a military violent way, but also a financial way. they are so greedy and irresponsible, they even sell out their own people to make the big guys bigger. When the US flops, and the world has financially recovered, it will be a better place.

September 15, 2009

K said:

... the only sad part is why do they always do this to bail out "leading" countries? Japan proposes this because their money is buggered. it would be good for the US because they have been stupid, and now need others to bail them out, after they have caused so much harm. Lets hope they don't get the helping hand they need. Karma

September 15, 2009

Patrick Henry said:

... K, You are simply incoherent and a shining example of colossal ignorance!

September 18, 2009