kamui Posted March 24, 2009 Report Share Posted March 24, 2009 China Takes Aim at Dollar MARCH 24, 2009 By ANDREW BATSON BEIJING -- China called for the creation of a new currency to eventually replace the dollar as the world's standard, proposing a sweeping overhaul of global finance that reflects developing nations' growing unhappiness with the U.S. role in the world economy. The unusual proposal, made by central bank governor Zhou Xiaochuan in an essay released Monday in Beijing, is part of China's increasingly assertive approach to shaping the global response to the financial crisis. Mr. Zhou's proposal comes amid preparations for a summit of the world's industrial and developing nations, the Group of 20, in London next week. At past such meetings, developed nations have criticized China's economic and currency policies. This time, China is on the offensive, backed by other emerging economies such as Russia in making clear they want a global economic order less dominated by the U.S. and other wealthy nations. However, the technical and political hurdles to implementing China's recommendation are enormous, so even if backed by other nations, the proposal is unlikely to change the dollar's role in the short term. Central banks around the world hold more U.S. dollars and dollar securities than they do assets denominated in any other individual foreign currency. Such reserves can be used to stabilize the value of the central banks' domestic currencies. [...] WSJ As the WSJ says, this is extremely unlikely, but it shows how powerful China already feels... Link to comment Share on other sites More sharing options...
drogon Posted March 24, 2009 Report Share Posted March 24, 2009 Yes read that too an it was in the air for already a few months...with China's attempt at the creation of a currency for SEA/Asia... Time has come for the $ to be "just" a major currency among others? Link to comment Share on other sites More sharing options...
TheCorinthian Posted March 25, 2009 Report Share Posted March 25, 2009 Who cares? Let them. I think it is amazing how so many people do not see letting China "buy" up US debt is in the interest of the US. Link to comment Share on other sites More sharing options...
Bangkoktraveler Posted March 25, 2009 Report Share Posted March 25, 2009 Why don't they use the money speculated might be used if Canada, The USA, and Mexico come under one form of money? Link to comment Share on other sites More sharing options...
Faustian Posted March 25, 2009 Report Share Posted March 25, 2009 The Chinese really are flexing their muscles, aren't they....all very interesting.... China vs America...the next cold war....? Link to comment Share on other sites More sharing options...
shygye Posted March 25, 2009 Report Share Posted March 25, 2009 China, that has currency restrictions, wants some nebulous "international currency". This must be a slap in the face to the EU masters that wanted the Euro to replace the dollar. Link to comment Share on other sites More sharing options...
ThaiHome Posted March 25, 2009 Report Share Posted March 25, 2009 The Chinese really are flexing their muscles, aren't they....all very interesting.... China vs America...the next cold war....? Donâ??t kid yourself, China has been waging a low level trade war against the US for a long time. Its easy to complain about the dollar and foreign exchange markets when you do not allow your own currency to be floated on the market. TH Link to comment Share on other sites More sharing options...
cavanami Posted March 25, 2009 Report Share Posted March 25, 2009 The US gov and US biz put themselves in this position. Many, many manufacturing and research jobs were shipped to China...didn't we hear that China will start to manufacturer Boing Airplanes? Yes, I see China as the Big Dog in my lifetime...can you say...Ni hao ma? better learn! IMO Link to comment Share on other sites More sharing options...
Barry Posted March 25, 2009 Report Share Posted March 25, 2009 Boing Airplanes? Are they comedy planes that make that sound effect like on Thai TV shows? Link to comment Share on other sites More sharing options...
shygye Posted March 25, 2009 Report Share Posted March 25, 2009 The US gov and US biz put themselves in this position.Many, many manufacturing and research jobs were shipped to China...didn't we hear that China will start to manufacturer Boing Airplanes? Yes, I see China as the Big Dog in my lifetime...can you say...Ni hao ma? better learn! IMO The Chinese will be building Airbus A320 pax jets. Link to comment Share on other sites More sharing options...
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