The Conservative Cave

Current Events => Breaking News => Topic started by: BlueStateSaint on March 24, 2009, 05:31:46 AM

Title: China calls for new reserve currency
Post by: BlueStateSaint on March 24, 2009, 05:31:46 AM
The country that holds a bunch of our debt.  Wonderful!


China calls for new reserve currency

By Jamil Anderlini in Beijing

Published: March 23 2009 12:16 | Last updated: March 24 2009 00:06

China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.

Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.

“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.

Although Mr Zhou did not mention the US dollar, the essay gave a pointed critique of the current dollar-dominated monetary system.


The rest of the article is at:

http://www.ft.com/cms/s/0/7851925a-17a2-11de-8c9d-0000779fd2ac.html

All those gains of yesterday on the Dow . . . gone today!
Title: Re: China calls for new reserve currency
Post by: Mr Mannn on March 24, 2009, 05:45:58 AM
Printing trillions of counterfeit dollars does have an effect on people who hold your debts.
Title: Re: China calls for new reserve currency
Post by: RebelHeart on March 24, 2009, 12:53:27 PM
can you say 1 world currency?
Title: Re: China calls for new reserve currency
Post by: JohnnyReb on March 25, 2009, 12:25:57 PM
Save your Confederate money boys, the south shall rise again....or maybe not. But at least your money will be worth more than the Yankee dollar.
Title: Re: China calls for new reserve currency
Post by: NHSparky on March 25, 2009, 12:30:08 PM
Dear China,

If you're so concerned about the state of the dollar, why do still have the value of the yuan tied to the dollar?  Why not let it float?

Sincerely,

America