January 10 - Sarkozy urges less international reliance on US dollar

France is hosting this year's G8 and G20 summits, and French President Nicolas Sarkozy has started to campaign for a change to the way the US dollar plays a central role in the global economy.

In his New Year's Eve address to his country, Sarkozy said France would look to change a system which no longer reflects our modern global society.  "The system put in place in 1945 is for a world that doesn't exist anymore," the French president told the nation.

Sarkozy's plan is to update everything to what he regards as the new reality of a more multi-polar world and the rise of new powers like India, Brazil and China.

"The Federal Reserve's latest actions favor the US but have consequences for the rest of the world," Dessertine said. "Emerging countries and Europe really want to change that."

Dessertine and other economists say the dollar will remain king for now, so long as the world economy does not go into recession. But if things get worse, the US will have to work with other nations to reduce the dollar's influence.

He will now be hoping he will succeed at least in getting world leaders to talk about a new monetary system at this year's global summits in France. He will be hoping President Obama will also be prepared to join in these discussions.