Emerging Markets this year.
Posted on 06/28/2009 1:02:12 AM PDT by BGHater
China's central bank reiterated its call for the creation of a new international currency that could replace currencies like the dollar in countries' official reserves.
In its annual report on financial stability, issued Friday, the People's Bank of China said the country will push reform of the international currency system to make it more diversified and reasonable. While it didn't specifically target the U.S. currency, it said it aims to reduce over-reliance on the current reserve currencies, of which the dollar is the biggest.
"To avoid the shortcomings of sovereign credit currencies acting as reserve currencies, we need to create an... international reserve currency that can maintain the long-term stability of its value," the PBOC said.
The report, a lengthy document that addressed a broad range of issues, reiterated a proposal made by PBOC Governor Zhou Xiaochuan in March to use Special Drawing Rights, the synthetic currency developed by the IMF, as a super-sovereign reserve currency. That proposal, made just before the G20 summit in London earlier this year, appeared in an essay authored by Mr. Zhou and posted on the PBOC's Web site.
The call for a new global reserve currency was among a host of factors exerting pressure on the dollar Friday. The U.S. currency fell during New York trading against the U.K. pound, Australian dollar, yen, Swiss franc and euro.
The PBOC comments "fuel concern about reserve diversification undermining the U.S. currency," said analysts at Credit Suisse.
Senior Chinese officials, including Premier Wen Jiabao, have repeatedly expressed concern about the dollar, which comprises most of China's roughly $2 trillion in foreign exchange reserves. China is concerned that the dollar's dominance exacerbates global financial imbalances. It also worries that massive U.S. government borrowing to support stimulus spending could eventually lead to inflation, hurting the value of China's holdings.
(Excerpt) Read more at online.wsj.com ...
BTW, if you want to make up your lost moneys in your 401k's and IRA's, look very closely at China equities. They are becoming more free-enterprise and capitalist every day (while the US becomes less so). Also, look into Brazil and India. I have already made up much of my 08 losses back by buying Emerging Markets. They are the future for gains.
While you're doing that, think "civil disobedience" in our United States to slow, stop, or reverse our slide into oblivion. Best to you.
Emerging Markets this year.
I would simply say it has been a team effort. It’s not like it was only the Dems that ran up the National debt and other expenses.
and a new world currency not backed by gold is still a fiat currency. Bring back the gold standard and the world will want our currency once again.
Thanks.
You’re welcome!
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