SOUND BITES - THE U.S DOLLAR
By
Dr. Mahathir Mohamad
on October 15, 2009 4:04 PM | Permalink | Comments (2) | TrackBacks (0)
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1. When I wrote on the need to change trading currency from the US Dollar to some other currency I was accused of being anti-West.

2. Since then there have been many articles on the need to use other currencies for trading and even for other purposes e.g. reserve currency.

3. Today the headline in the Star's foreign news reads, "US Dollar reaches breaking point - central banks flushed with record reserves are increasingly favouring the Euro and Yen" (read article here).

4. If I had been critical of the West, it was always for good reasons. They invented a lot of ways of making money for their rich investors without producing any goods or services or creating any jobs. Because of their subprime loans, hedge funds and derivatives, currency trading, etc. etc. they had undermined the real economy. Their bubble has now burst, spilling over the rest of the world. And Malaysia has been affected by their crisis for no good reason.

5. When in 1997 we asked the International Monetary Fund and the World Bank to stop currency trading, they laughed at us. Now they know that people whose knowledge of finance can be written on the back of a postage stamp are not so ignorant after all.

6. And when so many people urge that other currencies than the US Dollar be used for trade and reserves, they cannot all be anti-West. In fact these views are coming from the West.

7. Labelling ideas as anti-this and anti-that will get us nowhere. Call a spade a spade. Only then can you find solutions to problems.