Uh-oh China's Top Banker proposes new world currency (IMF)

from Raw Story:
http://rawstory.com/news/2008/Chinese_central_bank_proposes_new_world_0323.html

UPDATE (at bottom): Moscow supports IMF super-currency

In an essay published Monday, the head of China's central bank proposed a plan to displace the American dollar as the world's standard and replace it with a global reserve currency operated from the International Monetary Fund.

"Zhou Xiaochuan, governor of the People’s Bank of China, argued that what he called a super-sovereign reserve currency would not only eliminate the risks inherent in currencies such as the dollar, which are backed only by the credit of the issuing country and not by gold or silver, but would also make it possible to manage global liquidity," reported the Times Online.

"But that's unlikely to happen, says Robert Scott, senior international economist with the Economic Policy Institute," reported Forbes. "'It's partly posturing, it's partly buyer's remorse,' he said, noting China, at some point, is going to have to let its yuan currency rise in value relative to the dollar's current price – likely by upwards of 30.0%. That means China's investments in U.S. dollars, via Treasuries, would lose a third of their value in yuan terms.

"'hey're getting hammered,' Scott said. Chinese leaders' heavy investment in the U.S. economy has exposed them to domestic criticism."
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Masters of the Universe aren't limited by boundaries.

BIGGEST problem is we are nowhere near the top of the list.

the next tier of economic powers is going to close significantly, but we are *quite* a ways away from being displaced by any other nation at the top of the pecking order.

The REAL american dream is actually a nightmare.

We are in a heap of economic trouble, to be sure. The rest of the world is, to varying degrees, in a much bigger heap of economic trouble.

As I said, the gap between the U.S. and the rest of the pack may narrow in the coming generation, but there is no single player that even close to overtaking us at the top of the economic pile.

At the billion and trillion rate we are going, inflation will continue to choke our economy to death. Stagnant and/or declining wages will never keep pace with the inflation we are facing.

I'm sorry that we don't seem to be communicating, but I'm trying to tell you that as bad as things are in the U.S. economy, there is still a *large* gap between the U.S. economy and the nearest competitor. That probably won't be true forever, but it is going to be true for at least the next generation or so.

The SDR is a basket currency formed from US Dollars, the British Pound, the Japanese Yen, and the Euro. It isn't like this will make the US dollar obsolete, and there is no guarantee this will even happen. It could take decades for a new reserve currency to be issued to the liking of the world.

Another two or three decades and...

to make into a reserve currency because of the US dollars anticipated inflation, but according to a Russian spokesmen it "could take 30 years."

and look where we are now.

My point is that just because it's some you're predicting as "decades" away does not mean that it is not already well in the works, or that it is something that we should turn a blind eye to now.

I think the Euro has worked out pretty well in the EU (I'm European BTW). As pointed out, it won't happen overnight and the object of such a move is greater stability rather than attacking other currencies. I'm optimistic about the idea.

At the G20 summit, Russia was the only country who even mentioned a supranational currency to either replace the US dollar or be a secondary reserve currency to it. China, for all their blustering now, did not even put forth a motion about it, nor comment publicly on Russia's move. If China and Russia can't even get on the same page to usurp the US dollar as the sole reserve currency, this process isn't near far along enough yet. But that's just my hunch :)

The question is, do the Powers That Be see this as a "good thing"? And in that vein, who appoints The Powers That Be?

I view Russia's move as a wink and a nod, weak as it may be in our eyes. China is only beginning to flex its real muscles. Let's not forget that it was only a few short years ago analysts were raising red flags about China's stockpiling of resources...this was completely under the radar in our news cycles. The US is weak at this point and China is holding our banknotes. Not too worried about UK so far, but if France or Germany (and maybe Italy) show signs of moving with the proposal it get rough.

Just because it's not far along enough yet doesn't mean it's not something that is going to simply evaporate into the dust.

What's your take on if this were definitively the track they were taking?

I'd say you have some breathing space. For that matter, the euro didn't exactly lead to the enslavement of its member countries. Apart from a twinge of nostalgia for some of the old coins and banknotes I think its worked out just fine.

I think this is a mix of anti-American sentiment, Chinese unwillingness to let their currency truly float, and Russia being hit in the face by the drop in oil prices. These things will all pass in time. SDRs may become a secondary reserve note, but they will not take over for the US dollar.

:puke: :puke: :puke: :puke: :puke:

:puke:

hey all fun and games huh

is a good thing.

:wtf: is wrong with you?

:popcorn:

Let someone else tow the "leader of the free world" line.

That and in the US you even mention any type of North American Union concept and liberals begin screaming out the right wing battle cry of "our sovereignty is precious and we cherish it." Which of course means "Fuck us helping anyone other than ourselves out, SOVEREIGNTY, DAMN IT, SOVEREIGNTY." :puke:

Read up, it won't hurt you. Snort :rofl:

:rofl:

This isn't the stuff of conspiracy theories. There is a heated debate going on about whether these two international financial organizations put more people into poverty than they help out of it. If you have read either Naomi Klein's The Shock Doctrine or Joseph Stiglitz's Globalization and its Discontents, you would be familiar with some of the more basic harm these two groups have done. Stiglitz, by the way, is a former World Bank Senior Vice President and Chief Economist until he quit, unhappy with the way the Bank was doing things.

Are you OK with the IMF determining the value of the denomination that your wages are paid in?

that'll really make your argument look rational. :sarcasm:

If it goes this far, c'est la vie. The US basically sold it's soul to the Chinese anyway for money so well...it's coming to get us.

I get too scared to leave the house these days. Its comming!

Hello, And Welcome To AmeroCurrency.com

http://www.amerocurrency.com/index.html


First of all, we'd like to point out we predicted the crash and subsequent nationalization of the U.S.
banking "industry" more than two years ago. Call it a "kook-site" if you will--particularly you half-assed
"journalists" who spends about 15 minutes researching a topic, then call it a "conspiracy theory web
site"--who's dreaming now?

Oxford University Press recently used
images of one of our coins to make a point
in the new and current textbook,
"Perspectives On Nationalism."

This site is dedicated to the good people of
North America. We receive tons of virtual
mail from Canada, Mexico and the U.S.
Most of the folks who send this mail are
opposed to the concept of a North
American union. Technically, and
geographically, we are already a Union. We
are geographically attached to one another,
we have NAFTA and all its offspring and,
we believe, we care for each other on a
citizen basis.

Recently, we received a comment from a
U.S. railroad worker. He pointed out how
much money has been committed to the
bank/mortgage industry recovery--so far--and pointed out how much of that money could have been
distributed to U.S. Taxpayers.

Figure $1-Trillion, by 300-Million citizens in the U.S. IF there were 300-million taxpayers, every one would
receive--instead of Wall Street rip-offs getting it--about $3333, each, to pull themselves out of whatever
mess they're in. If children were counted as "taxpayers" since their parents are taxpayers, a family of
four would receive $13, 333. Since there are not 300-million taxpayers, these figures would be higher.
Welfare recipients should receive no funds under such a plan, as they do not pay taxes and already
benefit ongoing free money from taxpayers, frequently live in Section 8 Housing and get food stamps.

:scared:

...... but maybe I need to borrow somebody's tinfoil. :scared: :tinfoilhat:

They're spending them while their strong. Buying up oil reserves, mineral rights, and property, around the world. They're obviously trying to set up a new currency standard for when the dollar inevitably collapses thanks to Geithner's revved up printing presses.

Unlike the geniuses running our economy, the Chinese can see the handwriting on the wall.

It's just on a global level. Simply the logical continuation of human history toward a single global civilization where everything and everywhere are the same. I'd say that's been the goal of everything we've been doing for a long while now. The internet being a pretty good example. You can get information from anywhere, no matter where you are. It's one of the reasons outsourcing is possible. But even outsourcing has been going on for a while, even before NAFTA, and all the rest of the trade agreements. America wouldn't exist without this globalizing process. If the energy required is cheap enough to do it, it will continue.

I agree with the article quotes in the OP. The Chinese are only saying this because their export-dominated cheap-labor policies have set their economy up for a world of hurt. They didn't invest in building a domestic consumer class but instead kept wages and thus lower class wealth low. If they had invested some of that money in their own people instead of buying dollars to keep exchange rates low, they'd be in better shape. They had the short sightedness of the US financial companies.

Nobody's suggesting that the US Dollar should be removed as the STANDARD currency.