More money for value

Establishing a multi-currency international reserve system and monitoring mechanism should be a priority for the G20

From the second half of 2008, a financial storm that originated in the United States swept across the world. The root cause of this crisis was the US' long-term abuse of sovereign credit, the misuse of its status as a global major reserve currency issuing country and the promotion of twin deficits in its current account and the fiscal budget. The situation was further aggravated by the maintenance of US citizens' excessive consumption and the US government's over spending.

Any chance of preventing a financial crisis was lost when US credit rating agencies covered up the sovereign credit risk, reversed the risk relationship between debtor countries and creditor countries, and attracted international capital to high-risk regions.