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.
[…]
In his paper, published in Chinese and English on the central bank’s Web site, Mr. Zhou argued for reducing the dominance of a few individual currencies, such as the dollar, euro and yen, in international trade and finance. Most nations concentrate their assets in those reserve currencies, which exaggerates the size of flows and makes financial systems overall more volatile, Mr. Zhou said.Moving to a reserve currency that belongs to no individual nation would make it easier for all nations to manage their economies better, he argued, because it would give the reserve-currency nations more freedom to shift monetary policy and exchange rates. It could also be the basis for a more equitable way of financing the IMF, Mr. Zhou added. China is among several nations under pressure to pony up extra cash to help the IMF.
This from a country that keeps its own currency artificially low and refuses to allow market force to peg the Uan at higher value. Thus helping to creating a unfair trade balance causing a sinking dollar.
When the Western Empire of Rome finally “fell” it wasn’t a big bang. It took many many years before it was complete. The Eastern Empire went on it’s merry way, but the Western half was finished. External pressures from the Goths, Alans, Vandals cause by the Huns pushing west into the “barbarians” territory cause the mass influx of foreigners to Western Roman land. After they had run amok and took over Gaul and Spain, and then hopped to Africa via Gibraltar, it was a merry jaunt to Carthage and the main source of Western Roman corn and tax.
Emperor Leo from the East raised a fleet of over 1100 ships for a final assault on Carthage. They got owned by the Vandals. After that, there was no use trying to rebuild the Western Empire. Those that were left didn’t notice right away, but the end was there. The last Western Roman emperor was executed and symbols of the Western Roman emperor were shipped east.
The West continued on, but it was no longer a regional power.
Maybe this is what’s happening with the US. Every empire declines. The people still go on, but their effect on the world is over.
Former President Cheney and Emperor Bush have bankrupted the US. It’s only logical that our largest creditor, China, wants to change the currency.
Hardly
Obomba has pushed us farther into the red more than all other presidents combined.
4,
Yes. Yes he did. Because he inherited a budget surplus just like George W Bush did.
I believe that eventually we have to get rid of the central bank fiat money based on debt system we currently have, and replace it with a steady state economy with a currency based on a common resource such as energy generation.
From what I can tell the China plan is just more of the same Central Bank crap we have endured since 1913.
A couple more years of record deficit spending and currency printing will kill the $.
#3, Obama voted for Bush’s StimPack. If Bush pulled the wool over Obama’s eyes, then that tells me that Obama is no better than any of the other fools in Congress.
You can only blame Bush for the problem up until Obama passed his own $1T StimPack. At that point, the economic troubles became his and were no longer Bush’s. The man can no longer blame a preceding President when he prints $1,000,000,000,000 and works a $3,500,000,000,000 budget. This problem is now Obama’s and the current Congress. Get used to it.
Sure, I blame Bush for getting us into this mess (in addition to every president in the last 100 years). I blame Obama for not fixing it when every study and shred of common sense tells you that devaluing your currency is bad.
If we had let the institutions fail and declare bankruptcy, we would be out of this mess because the bad debts would have been liquidated by now. Holding onto them and forcing their value to remain constant does nothing but create another bubble. Eventually, the Fed will raise rates again to try to keep the inevitable inflation down — and then drop them again when the dollar starts falling (when that bubble bursts) and we’ll be in worse shape than we are right now.
Duct Tape on a Hot Air Balloon will only keep it in the air so long.
#8 Yes, I’m familiar with the Republican strategy of washing their hands of the mess they create. What’s new?
In terms of the deficit. Did you factor in that the inherited and destroyed economy results in HUGE deficits for years to come due to revenue loss? Have to ask because the Republican calculator has been fucked up for years.
Your last point about letting intuitions (read banks) “die” is demonstrates you equate the financial industry with your average hamburger joint.
Look, let’s agree that adults are running the executive office now. We can disagree, however, if the medicine (spending) is worse than the disease (let everything fall apart). I happen to think the medicine will work.
I agree to disagree with you that letting everything fall apart is just dandy. However, I’m afraid the American people voted and did NOT want another administration with their head in the ass. Hence, Palin and the old guy were sent pack’n.
Interesting…
http://rasmussenreports.com/var/plain/storage/images/media/obama_index_graphics/obama_index_march_24_2009/210349-1-eng-US/obama_index_march_24_2009.jpg
11,
Indymac was nationalized and now it’s solid again. THAT is what should be done, and the regulations should be tightened on the banks.
And you might not be a republican, you’re also not a Libertarian.
Sorry, this is old news. How many different countries have championed changing out the dollar??
Tain’t gonna happen. Things may be bad here, but we’re still the most stable economy in the world.
#8, Cow-Paddy, Ignorant Shit Talking Sociopath, Retired Mall Rent-A-Cop, Pretend Constitutional Scholar, Fake California Labor Law Expert, Pseudo Military Historian, Phony Climate Scientist, and Real Leading Troll Extraordinare,
You can only blame Bush for the problem up until Obama passed his own $1T StimPack. At that point, the economic troubles became his and were no longer Bush’s.
Then, magically, it became someone else’s problem. Gee, didn’t that scenario play itself out with nearly every President lately? The Republicans leave a mess and the Democrats fix the mess while called incompetent by the Republicans. Yup, same old same old.
If we had let the institutions fail and declare bankruptcy, we would be out of this mess because the bad debts would have been liquidated by now.
Hey wait!!! It was your leader, President GW Bush that allowed the economy to tank. He and his advisors, led by Treasury Secretary Paulson that said we can’t allow the banks to fail. It was the conservative commentators that were crying how the sky was falling.
Also, it seems to me all this happened right after the FED allowed Lehman Brothers to fail. It did, it did!!!
Look idiot, I realize listening to Boss Limpdick is not an educational experience, so get over it. If the banking and financial sector of the economy dies, this country and most of the world would be plunged into the worst depression in history. The government would be writing more paper to cover all the welfare given to people whose employment shut down because they couldn’t find a bank. State governments would be going belly up, including Alaska.
And then YOU would be crying that the current President didn’t do anything.
#14 Confusion, why are you attributing another persons quotes to me?
Did you go back on the psychotropics?
#10, Cow-Paddy, Ignorant Shit Talking Sociopath, Retired Mall Rent-A-Cop, Pretend Constitutional Scholar, Fake California Labor Law Expert, Pseudo Military Historian, Phony Climate Scientist, and Real Leading Troll Extraordinare,
Rassmusen is a right wing hack poll. They are consistently behind every other poll. But trolling is your game and Cow-Patty is your name.
http://pollster.com/polls/us/jobapproval-obama.php
#15, Cow-Patty,
Yes, you are correct, this is my mistake.
Put it down as being so used to garbage from you, but I do apologize.
#12, Solid like Fanny/Freddie?
What makes you think I’m not a Libertarian?
Here’s the platform and I support it whole-heartedly.
http://tinyurl.com/4pvkky
Or are you just trolling?
#11, LibertyPoser,
Bush passed two StimPacks, which Obama voted for, and they didn’t work.
And which two “stimpacks” might they be?
# 17 Mr. Fusion said, “Yes, you are correct, this is my mistake. ”
Okay. You are already a bit disconnected from reality, the drugs will only make it worse. Just say no.
The IMF? That’s like putting even more foxes in charge of the hen house. Once again, the Chinese have underwhelmed me.
#14, Didn’t I say I didn’t support Bush’s policies? You need to read the whole post.
So, you do support Bush’s policies, that of passing StimPacks that don’t do anything?
Talk about a rant with no substance. I think you are having a psychotic break for finally realizing that Bush’s policies are the same as Obama’s policies and neither of them will work.
It’s ok. Drink some more hot coco. It’ll all be better in the morning.
WTF, we’ll have to then carry our currency in little cardboard boxes with a wire handle.
#19,
The last winter/spring 2008 and the one last fall.
The one from Feb 2008 gave me a MONSTER tax write-off on my new airplane.
#22, BWAHAHAHAHA!!
You know what your problem is?
I am an Obama basher AND a Bush basher and it drives you nuts because you want me to be right about Bush and wrong about Obama.
The problem is my bashing is using the same words to describe the same problem with both of them.
The fact you are trying to call Bush a Libertarian is final proof you are out of ammo.
Admit it. Obama is going to fail just like Bush did.
I think the Euro has put a lot of hurt on Europe because of the standard over there. I think it can help or hurt. I think China is really concerned about how much debt it holds of the US.
I really cannot blame them.
#22,
Solid like Fanny/Freddie?
The two FMs were very solid until they were pushed by the Bush Administration to take some of that toxic paper in 2007. Although it got the paper off the banks, the banks kept up with their “Free Market” activities and just wrote more.
That was not their original purpose, I agree, but like all good social programs there are unintended consequences.
That being said, I hate to burst your bubble . . . again . . . but this started under Clinton:
Since HUD became their regulator in 1992, Fannie and Freddie each year are supposed to buy a portion of “affordable” mortgages made to underserved borrowers. Every four years, HUD reviews the goals to adapt to market changes.
This next paragraph is my favorite!
In 1995, President Bill Clinton’s HUD agreed to let Fannie and Freddie get affordable-housing credit for buying subprime securities that included loans to low-income borrowers. The idea was that subprime lending benefited many borrowers who did not qualify for conventional loans. HUD expected that Freddie and Fannie would impose their high lending standards on subprime lenders.
http://tinyurl.com/3l4enj
Be sure to attack the source again.
18,
Seized, cleaned up and re-privatized.
http://wonkroom.thinkprogress.org/2009/03/20/indymac-example/
As for your Libertarian platform… it reads like an Ayn Rand book. Unfortunately, humans are messy beings. And as its apparent in the US, especially with regards to health care, most of your citizens are “it’s not my fault your sick” proponents. So, your libertarian platform will become “clean up your own back yard” and you’ll have a shithole.
Humans need civilization, not the jungle. Libertarian platforms work well in very small, self-sufficient communities where people don’t mind banging each others wife.
and from some of your comments in other blogs, you are definitely not a libertarian. It’s ok though. Most people that think they are, are not. Being a libertarian is like being religious. You can’t help but make it a cafeteria style belief; take what you like, leave the rest on the shelf.
#28,
clearing them of their troubled assets
And how was that accomplished? They were paid off by the FDIC so they could be resold. The bad loans are still there. The bubble still exists. $10.7B worth.
Re: Libertarian
I would like references, please.
29,
Look, there are two solutions that are practical. Nationalize or keep injecting more money. Letting them fail is not practical. It might make you excited, but it’s not practical. Nationalize is the way to go. I know you don’t like either solution, because it’s obvious that when you inject money, the companies buy jets, highways, corporate vacations and other crap. When you nationalize, you add a burden to the government.
As you eloquently pointed out that you blame all the presidents for the last 100 years, well, when the government creates an environment where greed, scams and corruption create a banking system that thrives on greed, corruption and scams… the outcome is pretty well determined. Now that you’ve let a bunch of people make fistfuls of cash, it’s time to regulate the banks. And before that, nationalize them, clean them up, and then re-privatize. You should probably give the taxpayers the shares after nationalizing and then selling a portion to a private company for ownership… but keep the public held stock.
Maybe you can bring the bank system up to a solid standard… like, oh… Canada.
#25, Poser,
The last winter/spring 2008 and the one last fall.
In other words, you don’t know and are just guessing. As usual, you just fudge when confronted.
The one from Feb 2008 gave me a MONSTER tax write-off on my new airplane.
Ya right, I didn’t know model airplanes qualified for a tax write off. But, posers are like that.
#27, Poser,
There is a world of difference between toxic paper, that which was fraudulently written and that which was written under the CRA. We have been through all this before and I showed you then too.
But here, try reading this from the NY Times for a good report on what caused the whole economic collapse.
There has still been no evidence that loans made under the CRA were any worse performing than other loans.
***
The first three paragraphs of your link
So, the FMs were forced to take the risky mortgages from the writers in order to make the Bush government look good. So read the first paragraph again,
… that subprime lenders were saddling borrowers with mortgages they could not afford,
in other words, TOXIC PAPER. But although this didn’t happen until Bush took power, you want to blame Clinton.
Hey Zeus H. Christ, your breath must stink pretty bad you are so full of shit.