Posted on 03/23/2009 4:17:35 PM PDT by datura
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”.
(Excerpt) Read more at ft.com ...
Good job, Zero.
Do it, China. Boil the frog.
using credit-based national currencies
What does he mean by this? Maybe that Fed buying of government debt is a bit of a problem to our biggest lender .... ;-)
What will be the basis of the new world currency? Gold?
Bad moon rising.
schu
There will be a new currency. There will be a flight to stability. There will be a return to the gold standard.
All will not make the change. Many will.
It has happened over and over. The retreat to gold is the normal order of mankind
“inherent deficiencies caused by using credit-based national currencies”
Replacing it with a “global credit based currency”?
(thought you might be interested in this, Ex-Tex)
I see a trend and it’s not up.
Could it be that China is worried that there 687 billion in US treasuries will be worthless soon and the will have lost 20% of their assets?
“For $1000, what is gold, Alex!”
This cannot lead to good things . . .
As it should be.
This is one of the same reasons the Fed was established. To have a pure, scientific, free from politics currency, unlike then the state banks, local banks that were accused of being unstable and political
Well, we know that politics is everywhere at all times and as anyone lightly familiar with the Fed’s actions and failing that it is the same as what it replaced. Which is natural, as human nature and political pressure is everywhere, all the time.
Any notion that a supra Reserve Bank won’t be political need only look at the UN.
Money needs to be taken out of governments hands. It is too important and should be a function of the free market.
It’s becoming increasingly clear why Bernanke is now monetizing our debt. China has run for the hills.
Countries would entrust a portion of their SDR reserves to the IMF to manage collectively on their behalf and SDRs would gradually replace existing reserve currencies.
Collectivism is on the march! BOHICA!
This cannot lead to good things . . .
Well, yes and no(I should have been an economist!).
So long as the markets are more or less free, valuations should begin to anticipate growth, even if augmented by inflation.
About 45% of my portfolio consists of emerging gold equities, which are up hugely in recent weeks.
IMHO, there is more major blood to be spilt in real estate, but equities are discounted excessively.
More currency is not TEOTWAWKI.
This still comes as no surprise. We all knew that China was our sworn enemy, and that their manufacturing was predatory. They evidently feel that with Zero in there, they finally have the complete upper hand.
Wonderful.
“controlled by the International Monetary Fund”
“able to remain stable in the long run...”
HA-HA-HA-HA-HA-HA-HA-HA-HA...
Heh.
Only if the “long run” is like a week or sumthin’.
It looks to be a fiat currency controlled by the International Monetary Fund.
If they do this, a dollar says that a finance minister from Zimbabwe gets put on the board.
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