A paper written ahead of the recent G20 summit by Zhou Xiaochuan, governor of the Chinese central bank, caused quite a stir. Zhou called for the establishment of a global reserve currency, a step which would firmly tip the balance of economic power in the direction of emerging economies like China and India, but would also bring benefits to poorer nations in the developing world.

The dollars role in international trade should be reduced by establishing a new currency to protect emerging markets from the confidence game of financial speculation, the United Nations
said.

Two very obvious changes have prompted this reaction: First, there is a growing recognition that
the course towards the current crisis was plotted when President Nixon severed the link between the dollar and gold in 1971. Second, the fact that, quite unlike any president before him, not only does Barack Obama believe in a more just and inclusive world, he also seems to recognise that creating such a world requires some levelling of the global economic playing field. The creation of a global reserve currency would be an essential first step in that process.

UN countries should agree on the creation of a global reserve bank to issue the currency and to
monitor the national exchange rates of its members, the Geneva-based UN Conference on Trade and Development said on Tuesday in a report.

China, India, Brazil and Russia this year called for a replacement to the dollar as the main reserve currency after the financial crisis sparked by the collapse of the US mortgage market led
to the worst global recession since World War II. China, the world's largest holder of dollar reserves, said a supranational currency such as IMF's special drawing rights, or SDRs, may add
stability.

There's a much better chance of achieving a stable pattern of exchange rates in a multilaterally-agreed framework for exchange-rate management, Heiner Flassbeck, co-author of the report and a UNCTAD director, said. An initiative equivalent to Bretton Woods or the European Monetary System is needed. The 1944 Bretton Woods agreement created the modern global economic system and World Bank and IMF.

While it would be desirable to strengthen SDRs, a unit of account based on a basket of currencies,
it wouldn't be enough to aid emerging markets most in need of liquidity, said Flassbeck, a former
German deputy finance minister who worked in 1997-1998 with then US Deputy Treasury Secretary Lawrence Summers to contain the Asian financial crisis.

Emerging-market countries are underrepresented at the IMF, hindering the effectiveness of enhanced SDR allocation. An organization should be created to manage real exchange rates between countries measured by purchasing power and adjusted to inflation differentials and development levels, UN said. The most important lesson of the global crisis is financial markets
don't get prices right, Flassbeck said.

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Interest rates have been cut to such an extent that you could be earning as little as 0.04 per cent after tax (0.05 per cent before tax) - or 40p interest a year on each £1,000.

But you can earn as much as 2 per cent (2.5 per cent) in some top-paying accounts used by banks to tempt in savers.

Now is the perfect time to switch, even if you are in an account that demands you give notice to get at your money. With interest rates this low, you will lose only a few pennies' interest if you move immediately without giving notice - and you can make that back in a couple of weeks.

David Black, from financial researcher Defaqto.com, says: 'If you have been in an easy access variablerate account for more than six months then check your rate. Best buy tables are full of newly launched accounts and those boosted by an introductory bonus.'

Nearly a quarter of the 460 easy access accounts on offer pay 0.08 per cent (0.1 per cent) or less on balances of £5,000, research from Defaqto shows.

But these figures only include accounts open to new savers. There are hundreds more among accounts closed to new savers where your money might have been languishing for years.

Switch and save: Banks are tempting customers to switch accounts

These appalling rates have come to light after banks and building societies adjusted the interest they pay to savers following the 0.5 percentage point cut in base rate to 0.5 per cent on March 5.

They tend to wait until the start of the following month after a base rate change to make adjustments to their savings rates.

Among larger providers, accounts where you earn a pitiful 0.04 per cent 0.05 per cent) are Barclays Savings Builder, six accounts from C& G - Cheltenham Gold, London, Direct Transfer, Instant Transfer, Young Saver and Cash Isa - First Direct Savings, HSBC Flexible Saver, Intelligent Finance Direct Access Savings and West Bromwich's Oak Account.

Branch-based accounts paying 0.08 per cent (0.1per cent) - or 80p a year on each £1,000 - include Abbey Flexible Saver, three accounts from Halifax (60 Day Gold, Instant Saver and Saver Reward) and three from Lloyds TSB (90 Day Notice, Flexible Saver and Instant Access Saver)

Notice accounts, such as Halifax 60 Day Gold, typically demand that you give 60 days' notice to take out money or pay a fine equivalent to 60 days' interest.

But with rates so low, the fine is tiny. The fine on £5,000 in a 60-day notice account earning 0.08 per cent (0.1per cent) works out at just 65p in lost interest. On a 90-day notice account it is £1.

You could also be earning appalling rates on tax-free cash Isas. Older versions of Alliance & Leicester Direct Isa pay just 0.1per cent, as does Abbey Postal Isa and Easy Isa to some savers and RBS Instant 60 Day Isa.

Both Halifax Isa Saver and Barclays Cash Isa pay 0.1per cent on balances up to £18,000.

A £10,000 sum earns you £10 interest a year against £300 in a top-paying account. And don't be fooled into thinking you earn a good rate on your internet account. Old Alliance Online Saver and Lloyds TSB Online Saver accounts, along with Abbey eSaver and Barclays e-savings, pay 0.08 per cent (0.1 per cent) once your introductory bonus has run out.

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In retail, not all locations are created equal. Score a prime spot on New York's Fifth Avenue and watch your costs rise--then again, your sales might, too. The alternative can happen as well, however: sales drop and so do rents. Based on research from Cushman & Wakefield, a New York-based commercial real estate firm, these are the 10 most expensive retails addresses in the world. Check it down ..

1. Fifth Avenue

New York City, N.Y.

Price-per-square foot, per year : $1,850

Price in 2007 : $1,500

Even with all the attractions New York has to offer, it's hard to find bigger crowds anywhere in the city than those that gather on Fifth Avenue from Central Park to Bryant Park. Whether it's through Saks, Cartier, Bergdorf Goodman or the Apple Store, the branding of Fifth Avenue is as critical to retailers as the foot traffic and wealth that comes through. As a result, rents are the highest in the world--and holding steady.

2. Causeway Bay

Hong Kong, China

Price-per-square foot, per year: $1,784

Price in 2007: $1,213

Hong Kong is expensive. There's a great deal of money and hardly any space upon which to build. Even so, that hasn't stopped the area from serving as Southeast Asia's premier shopping site. Most notable are Japanese retailers, like the 13-story Sogo department store, which is the most recognizable shop along the stretch.

3. Madison Avenue

New York City, N.Y.

Price-per-square foot, per year: $1,200

Price in 2007: $1,200

Madison Avenue makes it as the second most expensive location in New York City. However, it doesn't look as strong as Fifth Avenue for the coming year. According to Gene Spiegelman, executive director of retail services at Cushman & Wakefield, vacancies have picked up in the last three months and retailers are looking for discounted rates.

4. Avenue des Champs-Elysees

Paris, France

Price-per-square foot, per year: $1,134

Price in 2007: $922

Few streets in the world are more readily associated with high-end fashion than the Champs-Elysees. Increasingly, properties on the avenue are being developed as mega stores, such as the 20,000-square-foot Louis Vuitton showroom and the Virgin Atlantic shops, which are the biggest of their kind in Europe.

5. Via Montenapoleone

Milan, Italy

Price-per-square foot, per year: $983

Price in 2007: not available

Milan is Italy's fashion capital, and Via Montenapoleone is its best shopping street. Everything you can imagine--from Gucci and Louis Vuitton to Prada and Salvatore Ferragamo--can be found on this span.

6. Via Condotti

Rome, Italy

Price-per-square foot, per year: $909

Price in 2007: not available

The key to retail pricing is traffic. Wherever you have the most tourists congregating is likely where the highest-priced retail properties can be found. That makes Via Condotti, near the Spanish Steps, a home of fine shops. The street that once played host to writers such as Lord Byron, John Keats and Percy Shelley now boasts an array of luxury goods shops like Valentino and Hermes.

7. . East 57th Street

New York City, N.Y.

Price-per-square foot, per year: $900

Price in 2007: $900

East 57th Street runs between New York's two most prosperous retail stretches, Madison Avenue and Fifth Avenue. Visitors staying at the Four Seasons--one of Manhattan's most expensive hotels--who need somewhere to shop can just step out their door to a wide range of opportunities, starting with Tiffany & Co. on the corner of Fifth and moving down to Tourneau at the corner of Madison.

8. Grafton Street

Dublin, Ireland

Price-per-square foot, per year: $824

Price in 2007: $668

With Ireland's economic growth has come a boom in consumer spending. While some Irish are using the value of the euro to take day-long shopping trips to New York, many others--as well as visitors from abroad--head to Grafton Street, which runs through downtown Dublin and into Trinity College. The slowing Irish economy and challenges to the banking system, however, will likely slow growth into next year.

9. New Bond Street

London, U.K.

Price-per-square foot, per year: $810

Price in 2007: $813

New Bond Street, an extension of "old" Bond Street in the West End, was once an example of urban sprawl. But today, the stretch is one of the most valuable pieces of property in the world. As U.K. growth sputters near recessionary levels, this prime stretch that courts tourists and moneyed Britons has dropped in value--but only slightly.

10. Ginza

Tokyo, Japan

Price-per-square foot, per year: $794

Price in 2007: $683

The Ginza District is a mash-up of Japanese baroque revivalism, ultra-modern design, corporate buildings like the Sony Building and Georgian-built European buildings. Consumer confidence is the real question for 2009. Though the Japanese have experience with prolonged recessions, Japanese savings rates are traditionally very high during tough times.

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Forget werewolves and vampires. With markets melting and 401(k)s dwindling, people are much more afraid of going broke. This Halloween, give revelers a real shot of terror with a costume that reflects the tough times.

1. AIG Executive

You'll need a fluffy robe and a respectable manicure.

Accessories:

--Spa slippers
--Clay facial mask
--Fluffy slippers
--AIG "Hi My Name Is..." sticker badge

2. Cowboy Capitalism

Dress up in a business suit but with a cowboy hat and boots. Sport a black eye.

Accessories:

--Adult beverage in a brown bag

3. Dow Jones Industrial Average

Paint a large piece of cardboard with a downward plunging arrow and write "DJIA" across your chest.

Accessories:

--A teddy bear
--A case of the shakes

4. Fannie Mae and Freddie Mac

A guy and a gal dress up as drunken sailors in the style of Raggedy Ann and Andy.

Accessories:

--Bottles of booze
--Toy houses

5. Financial Bailout

Gear up in red and gold as the Hammer and Sickle Superhero. You'll need: a headband, tights and a cape.

Accessories:

--A bucket labeled $700 billion and stuffed with cash.

6. Golden Parachute

Put on a jumpsuit (preferably gold). Then spray-paint a trash bag gold and attach parachute strings.

Accessories:

--Affix giant dollar sign to chest
--Safety goggles or golden superhero mask, depending on taste
--Play money tucked into belt and pockets.

7. Lehman CEO Dick Fuld

Climb into your Skeletor costume. Put on a golden parachute.

Accessories:

--"Blame the Shorts" button
--Golden handcuffs

8. Mortgage-Backed Security

Strap a small, plastic child's play house on your back.

Accessories:

--Wrap two bike chains across your chest
--Makeup to turn face black and blue

9. Treasury Secretary Hank Paulson

Get a sharp looking suit, bald cap, rimless spectacles.

Accessories:

--Toy bazooka

--Assistant Secretary Neel Kashkari "mini me" doll.

10. Underwater Mortgage

Make a diorama of a house with a hole in the bottom for your head. Paint fish and furniture floating in the windows. Wear a snorkel and diving mask

Accessories:

--Life preserver labeled "foreclosure relief plan"

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Address : 1005 N Crescent Dr , Beverly Hills, CA 90210

Pricing : $28,500,000 / $143,213 per month ( 8 Bed, 9.5 Bath | 15,000 Sq Ft )

Address : Nimes Rd , Los Angeles, CA 90077

Pricing : $85,000,000 / $427,127 per month ( 10 Bed, 14 Bath | 48,000 Sq Ft )
Address : 12700 Chalon Rd , Los Angeles, CA 90049

Pricing : $34,900,000 / $175,373 per month ( 10 Bed | 19,961 Sq Ft )
Address : Hillsboro Beach, FL 33062

Pricing : $42,000,000 / $211,051 per month ( 7 Bed, 8.5 Bath | 19,296 Sq Ft )
Address : 1407 Benedict Canyon Dr Beverly Hills, CA 90210

Pricing : $29,850,000 / $149,997 per month ( 9 Bed, 13 Bath | 13,000 Sq Ft )

Address : 203 S Beach Rd Hobe Sound, FL 33455

Pricing : $29,900,000 $150,248 per month ( 9 Bed, 13 Bath | 26,152 Sq Ft )

Address : 12 Indian Creek Dr Indian Creek, FL 33154

Pricing : $35,000,000 / $175,876 per month( 7 Bed, 11 Bath | 14,510 Sq Ft on 1.84 Acres)

Address : Boston, MA 02108

Pricing : $27,500,000 / $138,188 per month ( 11 Bed, 12 Bath | 18,000 Sq Ft )
Address : 1623 28Th Street Northwest Washington, DC 20007

Pricing : $49,000,000 / $246,226 per month ( 9 Bed, 8.5 Bath | 3.58 Acres )
Address : 1072 Newbern Ct Thousand Oaks, CA 91361

Pricing : $25,000,000 / $125,625 per month ( 6 Bed, 8 Bath | 12,713 Sq Ft )

Source

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Unemployment could double to four million unless the Government takes drastic action to boost public spending and create new jobs, a Bank of England official has warned.

In a dire outlook, Monetary Policy Committee member David Blanchflower also said the recession could be deeper and longer than the Bank previously predicted.

He added that the Government needed to tackle the soaring numbers of young people out of work by raising the school leaving age sooner and pushing more people into higher education.

Doom and gloom: The Bank of England's predictions that UK output would tumble 3.5 per cent could prove 'too optimistic'.

Speaking at a Westminster conference, Mr Blanchflower called for the Treasury to launch a near-£90billion fiscal stimulus, including tax cuts and investment in new schools and hospitals. This would help create 750,000 new jobs, he said.

'This is not about people being lazy,' he added. 'There aren't jobs. In six months this is going to be the biggest issue in every MP's constituency.'

David Blanchflower says the recession could be deeper and longer than initially expected..

Mr Blanchflower has proved one of the most prescient members of the MPC, calling for interest rate cuts a year before the rest of the committee.

Last summer he forecast unemployment would hit two million by Christmas - a prediction that was fulfilled in January.

Last month the Bank of England predicted UK output would tumble 3.5 per cent this year, before recovering 1.2 per cent in 2010.

But this is likely to prove too optimistic, Mr Blanchflower said yesterday. As a result, predictions that jobless ranks will peak at three million are also likely to be too rosy.

'(With) any forecast of unemployment and output, the likelihood in a recession is we have undercooked it,' he told MPs. A surge in unemployment to four million would mean the total surpassing the heights reached in the deep recession of the 1980s, when joblessness peaked at nearly 3.3million.

Mr Blanchflower's fiscal stimulus plan includes 'large cuts' in income taxes and national insurance contributions for the lowpaid and young people.

In a paper co-written with David Bell of the University of Stirling, he said the Treasury should plough billions into construction projects by health authorities, universities and housing associations.

The raising of the education leaving age to 18 should be brought forward to this year to prevent legions of school leavers seeking jobs when there are few available.

This summer more than 600,000 people will leave schools and universities and embark on a desperate search for work. Already 40 per cent of the unemployed are under 25.

Mr Blanchflower said young people's entire lives would be affected if they were unable to find work now.

Honda workers to get pay cut

Carmaker Honda is asking its workers to accept a pay cut for at least a year to ensure the survival of its UK factories.

The Japanese firm is sending letters to 3,600 workers at its Swindon plant stressing the dire state of car manufacturing.

The letters do not state the size of the cut, but a similar arrangement at Toyota has seen both working hours and pay cut by 10 per cent at its two UK plants.

The average wage for lineworkers is around £22,000. The Unite union said negotiations were yet to be held on the issue.

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WITH interest rates low, 13above.com takes a look at what that means for your mortgage, your savings and the prospect of dipping your toe back in the share market.

Interest Rates Dice : Low rates ... Use extra cash from interest rate cuts to keep paying off your mortgage, say financial planners.


Mortgages :

The Reserve Bank left interest rates unchanged at 3.25 per cent at today's meeting.

The decision surprised economists, who were tipping a cut of between 25 and 50 basis points. With rates on pause, is now the time to lock in a fixed rate mortgage?

Give it a few more months, since rates could fall further, says Prescott Securities chief economist Daryll Gobbett.

"I think we’re looking at a cash rate of 2 per cent or 2.25 per cent. Not tomorrow, but maybe by May,” says Mr Gobbett.

Existing fixed rate deals don’t hold great appeal anyway, says Count Wealth financial planner Desiree Fraser.

She advocates using fixed rate mortgages to shield yourself when you know you can’t afford a bigger monthly repayment – not for second-guessing the future.

"If you know you can’t afford interest rates to go up another 3 per cent, lock it in now. So use it as a protective mechanism,” she says.

"Do it on the basis of what is affordable to you, rather than what you think will happen in the future."

Keep putting extra cash from a rate cut towards your mortgage.

"The best advice to give when interest rates are falling is to maintain your payments at the high interest levels,” says Heraud Harrison private client adviser David Marasea.

"Don’t reduce the payments just because interest rates have gone down. You’d be surprised at the compounding effect."

Paying down a mortgage at 6 or 7 per cent is a better deal than socking it away in cash and earning just 3 per cent interest, says Mr Gobbett.

"Keep chipping away at that mortgage,” he says.

Savings :

People who yanked money out of the haemorrhaging share market last year now face dwindling returns on their cash as interest rates tumble.

Term deposits that paid 7-8 per cent late last year have fallen to around 3 per cent – less than the inflation rate of 3.7 per cent.

Australians have upped their savings from zero to 4 per cent of income as nerves about the economy dampen the urge to spend, but are hardly earning anything on that cash. So should they consider investing that money instead?

"It depends on why they’re saving,” says Mr Gobbett.

"It really comes down to if people are saving for a house or something for the next 12 -18 months, (or) keeping that money (as) savings or term deposits because of the risk."

Those looking to the longer term should consider shares offering good dividends (some give an 8 per cent return), instead of tiny interest returns, says Mr Gobbett.

"If saving for retirement or lifestyle, they should start looking at bank shares where they will get a better level of dividend, even with cuts we’ve seen with ANZ lately,” he says.

Ms Fraser says things are tough for savers.

"They’re getting hit quite hard,” says Ms Fraser of people who parked cash in what used to be high-interest accounts.

Rates will stay low, so look at your spending and consider if you need the income from savings to live on. Ask yourself what your priorities are. If protecting your capital isn’t important, you might be better off spending the money and rebuilding savings later, Ms Fraser says.

Shares :

Low interest rates discourage savings, but with the ASX at five-year lows, is it a good time to invest in shares? What about borrowing to invest now that rates are low?

"Obviously there is still so much concern in the general public about what’s going to happen and when it’s going to occur,” says Ms Fraser.

"There is no end goal. No one can tell them when the market is going to recover."

Few clients are showing up with a pool of cash to get into the market, she says.

Mr Gobbett urged caution with margin loans: they can burn you if you pick the wrong market bottom.

"Just be a bit careful at the moment,” he says.

"The problem is that if the market falls further, you have to tip more money in."

If you do invest, focus on companies paying good dividends or consider buying into new share offerings by big companies, often at a discounted price.

Commbank invited retail investors to buy in with just $1000, and Wesfarmers offered shares at a few dollars discount. Many banks are still paying good dividends, he says.

"Twelve or 18 months ago, it would have been quite risky, but now all shares are down, even ones that are good value. So it may be time to buy into some share offerings that are offered at discounts," he says.

The market is always a good long-term bet, says Ms Fraser.

"I think it’s appropriate as always for people with a long term horizon, say seven years, who don’t require it for income and don’t need the capital,” she says.

"It depends largely on your risk tolerance and your investment time horizons. If you’ve got the next 20 years to invest, then you’ve got to accept the share market represents value, even if it goes lower," says Mr Marasea.

Source

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