The current regime is dysfunctional and beset by various deficiencies.

Financial Times –
"Carney calls for global monetary system to replace US$" 

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– Flash Points –

1 – The world cannot continue to rely on the US dollar.
2 – The all-powerful dollar is problematic for the global economy.
3 – The IMF could establish a multipolar global monetary system.

– Synopsis –

At this year’s Jackson Hole Economic Symposium, Bank of England governor Mark Carney stated that the world can no longer rely on the US dollar as the reserve currency.  

Lack of Balance

The global economy has changed radically since 1971, which marked the end of the Bretton Woods system. Nevertheless, the US dollar remains the global reserve currency.

A major part of the problem is that, while US trade accounts for only 10% of global trade, much of the other 90% of global trade is conducted in US dollars. A similar imbalance is reflected in the percentages of financial transactions.   _{(Image source)}

Dysfunctional, Deficient ... and Disturbing 

Under the current system, other countries essentially must hold US dollars. Consequently, they are subject to the undue influence of any fluctuations in the US dollar.   

As Carney notes, the current regime is “dysfunctional”  and beset by various “deficiencies.”  As an alternative, he suggested that the current scheme be replaced by one based on a basket of global currencies. That could be achieved by creating an international digital currency.

– Insight from Outside –

The current US$-centric monetary system, in which other countries are compelled to rely on the US dollar, puts those countries at a clear and severe disadvantage.    

As Valéry Giscard d'Estaing said back in the 1960s, the fact that the US dollar is used as the world’s global reserve currency gives the US an “exorbitant privilege.”  The corollary is that all other nations are “exorbitantly underprivileged.”  Such a deficient system cannot be maintained much longer.   _{(Image source)}

Lack of Trust

Moreover, on a recent Keiser Report, writer Dominic Frisby acknowledged that the current US$-based system is problematic. He also declared that he does “not trust Mark Carney.”  He added that “Bitcoin is the way,”  and that we need to “keep the government out of our monetary system.”

Indeed, it’s high time for a decentralized monetary system.

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