It appears to be a major summit about the future of the current fiat money system of unbacked currencies.
The release in full:
The Swiss National Bank (SNB) and the International Monetary Fund (IMF) will jointly host a High-Level Conference on the International Monetary System in Zurich on May 11, 2010.
In the wake of the global crisis, this conference will provide an opportunity to exchange ideas on a number of related topics, including sources of instability in the international monetary system, improving the supply of reserve assets, dealing with volatile capital flows, and possible alternatives to countries’ accumulation of reserves as self-insurance against future crises.
The conference will bring together a group of high-level participants, including central bank governors, other senior policymakers, leading academics, and commentators.
The key objective of the conference is to examine weaknesses in the current international monetary system, and identify reforms that might be desirable over the medium to long run to build a more robust and stable world economy.
The event will be concluded with a joint press conference by SNB Governor Philipp Hildebrand and IMF Managing Director Dominique Strauss-Kahn.This blog has stressed since 2005 that fiat money never worked in the past 300 years. The past 40 years without a gold standard may be seen as a strange aberration in the 5,000-year history of gold as money.
The stress in the global financial system has never been more global than it is nowadays and will require an international agreement to avert the economic crisis.
Not expecting any quick wonders like a return to a full gold standard it will nevertheless be interesting to check on the outcome of this conference. It is the first time in history that the future of the monetary system will not be decided by Western powers alone. This time there is a Chinese dragon in the room who may have the same problems with runaway money supply as the West but who may have different ideas how to tackle the problem of growing distrust of each other's currency.
Markets sent the Euro to a new 2010 low below $1.31 today and volatility in all pairs has rocketed recently.
The Euro's problems are far from over with Spain and maybe even France becoming major road blocks in comparison to tiny Greece when checking their debts and liabilities.
Federal Reserve Notes (FRN) only gained against the Euro and the other EU weakling, Great Britain but lost ground against the commodity currencies from Australia and Canada this year.
Having lost 97% of their value in 97 years FRNs are destined to go the way all other fiat currencies did before within a human's life span: Devalue to (nearly) zero.
I conclude a currency "reform" on a global could be in the making, destroying the savings of those who did not drown in the global property crisis.
Mind this historical lesson: In all fiat currency reforms in the past, gold never lost its purchasing power. More on this in future posts.