Posted on 08/07/2011 9:08:35 AM PDT by barmag25
The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple “A” rating.
In comments emailed to CNBC, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is “gradually discarded by the world,” and the “process will be irreversible.”
Dagong made headlines last week when it became the first rating agency to cut its U.S. credit rating from “A+” to “A” after policymakers in Washington failed to act in a timely manner to lift its debt celing.
However, the announcement failed to register in the markets as investors have yet to decide whether to take the Beijing-based company seriously.
(Excerpt) Read more at cnbc.com ...
what to put in its place,
the dingdong?
Oh now there's an image of credibility.
I’m sure the one world government folks are loving this. They will be all over msnbc soon calling for a global currency.
Great job, Bernanke. Way to go. /S
It is high time our country becomes self suffient again and builds privately owned companies that cannot be manipulated by the world system.
It is high time our country becomes self suffient again and builds privately owned companies that cannot be manipulated by the world system.
You are so right. We need to start by drilling our own oil and gas and keeping it here and using it here.
Another thing we can thank the American Communist Democrat Party and their pubbie allies for. When this happens, and it will, there will be misery here the likes of which we cannot imagine.
The icing on that cake is once we're weakened, armies of other countries will come in to steal what we have.
Wonder how the liberals will feel about the ways Arabs fight wars - rape the women, kill the men.
Thanks dems - thanks for giving the wealth of our nation away to buy the votes of your victim group constituencies.
That’s cute, China is as boned as we are.
Who will they sell to if we stop buying, Europe? They’re in the worst shape of all.
I doubt many people understand what a currency collasp is like - especially one that we don't EVER recover from... at least not in our lifetimes...
I try to get a mental handle on what things would be like here if nobody wanted our dollar, whenever I think I’m seeing things correctly I cringe in horror. A worthless dollar means misery beyond comprehension.
And who were the architects of the current World system? It wasn't the Chinese. America created a system after the Second World War that competed with the Soviet led system. The American system won. In the early seventies, Nixon abandoned the gold standard over the protests of America's closest allies.
All of that has been very conveniently forgotten and I bet you didn't see this coming!
Unfortunately America is too weak to unilaterally create a new system or to retreat to its borders and ignore the rest of the World. The same rules that applied to Latin America in the late 20th century (when they could not pay their debts and defaulted) will also apply to America if nothing is done.
You benefit so much from the current system to abandon it. Oil is sold in dollars, you control the World Bank and the IMF, obtaining credit is easy and American workers are paid way too much in relation to what they produce.
Abandon the current system at your peril.
They will sell to themselves of course, just like we used to do here. China has a large and growing middle class and their domestic demand is increasing. Hard times for them? Yeah, collapse? no way. We however will be screwed for the 2 generations it will take to rebuild our ability to meet our domestic demands. That is if the Chinese give us the 2 generations it would take. Thanks a lot free traders.
Isn’t that the unstated goal of communism - equal misery - except for those at the top who - as Obama said - are paid to handle things for the rest of us?
Can’t have any content, self-suficent right wingers out there when there are miserable rat voters, can we?
Besides the US, there are 16 nations with AAA ratings. Pick one that is not using the euro:
UK, canada, new zealand, australia, isle of man, denmark, sweden, norway, and singapore...all are AAA rated and do not use the euro
the obvious alternative to the US dollar in my opinion would be for the former british colonies(sans USA) to use a common currency. Maybe call it the new pound.
But the rest of the world is leaning towards using what they are calling the SDR or special drawing rights.
Commence the trade war.
China will only become more arrogant from here on.
It’s going to happen, let’s start now.
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