The following is the text of an e-mail I sent today to Subscribers of StockResearchPortal.com. StockResearchPortal.com is a research website that provides coverage on the approximate 1,600 Mining and Oil & Gas stocks listed on the Toronto and Toronto Venture Stock Exchanges.

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An article on Wednesday titled the ‘World ‘can no longer rely on dollar’‘ reported that the Managing Director of the International Monetary Fund (’IMF’) delivered a speech in Beijing on Tuesday on the global economy and IMF reform, saying “The imperative of greater global currency stability meant the world could no longer rely, as it had done since the end of the gold standard, on a currency issued by a single country”. He further stated his view that a new global currency might evolve out of the IMF’s Special Drawing Right (’SDR’) in-house unit of account. He also said China needs a stronger yuan as part of a package of policies to help rebalance its economy by promoting domestic demand, the sooner the better, but this will take time. He then expressed concern that political willingness to overhaul the international monetary system would falter if, in a year’s time, the visible signs of the economic crisis had faded.

The article reports that former IMF chief Michel Camdessus at the same conference said time was of the essence in reforming the global monetary system given: “This favourable window of opportunity is there. It will not stay open forever”. Camdessus also is reported as giving broad backing to a recent proposal by Chinese central bank governor Zhou Xiaochuan that an expanded SDR could eventually replace the dollar as the global reserve currency and to that end the SDR basket had to be modified to include the yuan and perhaps the Indian rupee and Brazilian real.

I think this is interesting stuff, that it certainly must be disconcerting for the current U.S. Administration, and that it ought to be taken as a clear signal to Americans that the world is perceiving America quite differently from an economic perspective than it did as late as only one year ago. Prior to the September, 2008 economic meltdown there had been talk by Iran and others about replacing the U.S.$ as the World’s Reserve Currency. This is now becoming an increasingly discussed topic - none of which in my view can be good for prospective world confidence in the U.S.$.

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