Avernus Posted March 24, 2009 Share Posted March 24, 2009 http://www.ft.com/cms/s/0/7851925a-17a2-11...?nclick_check=1 China calls for new reserve currency By Jamil Anderlini in Beijing Published: March 23 2009 12:16 | Last updated: March 23 2009 23:24 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”. Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China. “This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC. Although Mr Zhou did not mention the US dollar, the essay gave a pointed critique of the current dollar-dominated monetary system. “The outbreak of the [current] crisis and its spillover to the entire world reflected the inherent vulnerabilities and systemic risks in the existing international monetary system,” Mr Zhou wrote. China has little choice but to hold the bulk of its $2,000bn of foreign exchange reserves in US dollars, and this is unlikely to change in the near future. To replace the current system, Mr Zhou suggested expanding the role of special drawing rights, which were introduced by the IMF in 1969 to support the Bretton Woods fixed exchange rate regime but became less relevant once that collapsed in the 1970s. Today, the value of SDRs is based on a basket of four currencies – the US dollar, yen, euro and sterling – and they are used largely as a unit of account by the IMF and some other international organisations. China’s proposal would expand the basket of currencies forming the basis of SDR valuation to all major economies and set up a settlement system between SDRs and other currencies so they could be used in international trade and financial transactions. 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. Mr Zhou said the proposal would require “extraordinary political vision and courage” and acknowledged a debt to John Maynard Keynes, who made a similar suggestion in the 1940s. Copyright The Financial Times Limited 2009 I'm all for a change, but I'd suggest we do away with currency altogether and come with a whole new format that eliminates greed and keeps things moving rather than fluctuating... Quote Link to comment Share on other sites More sharing options...
irish Posted March 24, 2009 Share Posted March 24, 2009 http://www.ft.com/cms/s/0/7851925a-17a2-11...?nclick_check=1 I'm all for a change, but I'd suggest we do away with currency altogether and come with a whole new format that eliminates greed and keeps things moving rather than fluctuating... So, like I give you a bunch of corn I harvested on my farm and you give me eggs and bacon from yours? Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted March 24, 2009 Share Posted March 24, 2009 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. lenin We've got the rope, now what shall we do with it? /lenin Quote Link to comment Share on other sites More sharing options...
wiegie Posted March 24, 2009 Share Posted March 24, 2009 France has been calling for something like this for decades. Let's not forget that China is holding tons of US currency because it specifically wants to have a trade surplus with us. While it can argued that the US economy is addicted to cheap loans from China, it could also be argued that China is addicted to Americans buying its products. The two cannot be separated. Quote Link to comment Share on other sites More sharing options...
Avernus Posted March 24, 2009 Author Share Posted March 24, 2009 So, like I give you a bunch of corn I harvested on my farm and you give me eggs and bacon from yours? I specialize in churning butter...so replace eggs with butter and we can shake on it... Quote Link to comment Share on other sites More sharing options...
irish Posted March 24, 2009 Share Posted March 24, 2009 I specialize in churning butter...so replace eggs with butter and we can shake on it... Deal! As long as I'm still getting the bacon. Quote Link to comment Share on other sites More sharing options...
Avernus Posted March 24, 2009 Author Share Posted March 24, 2009 Deal! As long as I'm still getting the bacon. ....you never said anything about bacon... let's be serious here... Quote Link to comment Share on other sites More sharing options...
irish Posted March 24, 2009 Share Posted March 24, 2009 (edited) ....you never said anything about bacon... let's be serious here... You better go back and check my first post below and then start packing up the bacon! :Honeygetmyshotgun: So, like I give you a bunch of corn I harvested on my farm and you give me eggs and bacon from yours? Edited March 24, 2009 by irish Quote Link to comment Share on other sites More sharing options...
Avernus Posted March 24, 2009 Author Share Posted March 24, 2009 You better go back and check my first post below and then start packing up the bacon! :Honeygetmyshotgun: bah...so much for me bragging about my reading comprehension earlier... I was totally hosed in this deal... Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted March 24, 2009 Share Posted March 24, 2009 http://www.ft.com/cms/s/0/7851925a-17a2-11...?nclick_check=1 I'm all for a change, but I'd suggest we do away with currency altogether and come with a whole new format that eliminates greed and keeps things moving rather than fluctuating... Good luck with that. Quote Link to comment Share on other sites More sharing options...
WaterMan Posted March 24, 2009 Share Posted March 24, 2009 This one world currency falls in line with those infowars.org guys in their theory that there is a shadow one world government. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted March 24, 2009 Share Posted March 24, 2009 and on the 7th day, he laid the dollar to rest Quote Link to comment Share on other sites More sharing options...
Avernus Posted March 25, 2009 Author Share Posted March 25, 2009 Good luck with that. it depends on what you consider greed....people will always want...but I consider greed to be something that skews your decision making in a completely unethical manner to increase your own gains....usually financially... Quote Link to comment Share on other sites More sharing options...
Avernus Posted March 25, 2009 Author Share Posted March 25, 2009 This one world currency falls in line with those infowars.org guys in their theory that there is a shadow one world government. there is a plan in place for a one world government, but I don't know if anything suggests that there is currently one in place... Quote Link to comment Share on other sites More sharing options...
tazinib1 Posted March 25, 2009 Share Posted March 25, 2009 (edited) there is a plan in place for a one world government, but I don't know if anything suggests that there is currently one in place... :coughcough: Free Masons :coughcough: Edited March 25, 2009 by tazinib1 Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted March 25, 2009 Share Posted March 25, 2009 :coughcough: Free Masons :coughcough: OMG, it's the Illuminati! Quote Link to comment Share on other sites More sharing options...
Big John Posted March 25, 2009 Share Posted March 25, 2009 :coughcough: Free Masons :coughcough: You are correct, he is one. Quote Link to comment Share on other sites More sharing options...
Avernus Posted March 25, 2009 Author Share Posted March 25, 2009 :coughcough: Free Masons :coughcough: ahaha I'm a Mason...I doubt that... Quote Link to comment Share on other sites More sharing options...
Avernus Posted March 25, 2009 Author Share Posted March 25, 2009 You are correct, he is one. I think he was alluding to my comment and not me... but I failed Polk's test so I'm in the fake Mason's club... Quote Link to comment Share on other sites More sharing options...
T_bone65 Posted March 25, 2009 Share Posted March 25, 2009 Why does every one want my job to go away Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted March 25, 2009 Share Posted March 25, 2009 Why does every one want my job to go away Paypal us each a few new crisp greenbacks hot off the press and we'll have your back. Quote Link to comment Share on other sites More sharing options...
T_bone65 Posted March 25, 2009 Share Posted March 25, 2009 Paypal us each a few new crisp greenbacks hot off the press and we'll have your back. Quote Link to comment Share on other sites More sharing options...
Big John Posted March 25, 2009 Share Posted March 25, 2009 Paypal us each a few new crisp greenbacks hot off the press and we'll have your back. How do you paypal paper currency? Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted March 25, 2009 Share Posted March 25, 2009 How do you paypal paper currency? You have to buy the special scanner / printer. Quote Link to comment Share on other sites More sharing options...
Avernus Posted March 25, 2009 Author Share Posted March 25, 2009 You have to buy the special scanner / printer. yeah, get a dual-sided printer... Quote Link to comment Share on other sites More sharing options...
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