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China's Official Press Agency Calls For New Reserve Currency, And New World Order
Zero Hedge ^ | 10-13-13 | Tyler Durden

Posted on 10/13/2013 10:57:23 AM PDT by RKBA Democrat

We assume it is a coincidence that on the day in which we demonstrate China's relentless appetite for gold, driven by what we and many others believe is the country's desire to have a call option on a gold-backed reserve currency when the time comes, just posted in China's official press agency, Xinhua, is an op-ed by writer Liu Chang in which he decries the "US fiscal failure which warrants a de-Americanized world" and flatly states that the world should consider a new reserve currency "that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States."

Of course, if China were serious, and if the world were to voluntarily engage in such a (r)evolutionary reserve currency transition, then all Magic Money Tree theories that the only thing better than near infinite debt is beyond infinite debt, would promptly be relegated to the historic dust heap of idiotic theories where they belong.

Some of China's (which as a reminder is the single largest offshore holder of US Treasury paper, and the second largest of all only second naturally to the Federal Reserve whose $85 billion in monthly monetizing "flow" is what is keeping rates from exploding higher) thoughts as captured in the Xinhua Op-ed:

Reform of the world’s financial system should include the introduction of a new international reserve currency to replace the U.S. dollar The international community could thus permanently stay away from the spillover of intensifying domestic political turmoil in the U.S. Fiscal impasse in the U.S. is a good time for “befuddled world” to start considering building a “de-Americanized world” Impasse has left many nations’ dollar assets in jeopardy and the international community agonized Other cornerstones should be laid to underpin a de-Americanized world, including respect for sovereignty, recognizing authority of UN in handling global hotspot issues and giving developing and emerging market economies more say in major international financial institutions Purpose of such changes is not to “completely toss the United States aside,” rather to encourage Washington to play a much more constructive role in addressing global affairs

Of course, if and when the day comes that the USD is no longer the reserve currency, kiss America's superpower, or any power, status, which is now based purely on the USD's reserve currency status, and the ability to fund half the US budget deficit with debt promptly monetized by the Fed, goodbye.

Finally, as a reminder...

From Xinhua:

U.S. fiscal failure warrants a de-Americanized world

As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world.

Emerging from the bloodshed of the Second World War as the world's most powerful nation, the United States has since then been trying to build a global empire by imposing a postwar world order, fueling recovery in Europe, and encouraging regime-change in nations that it deems hardly Washington-friendly.

With its seemingly unrivaled economic and military might, the United States has declared that it has vital national interests to protect in nearly every corner of the globe, and been habituated to meddling in the business of other countries and regions far away from its shores.

Meanwhile, the U.S. government has gone to all lengths to appear before the world as the one that claims the moral high ground, yet covertly doing things that are as audacious as torturing prisoners of war, slaying civilians in drone attacks, and spying on world leaders.

Under what is known as the Pax-Americana, we fail to see a world where the United States is helping to defuse violence and conflicts, reduce poor and displaced population, and bring about real, lasting peace.

Moreover, instead of honoring its duties as a responsible leading power, a self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas, instigating regional tensions amid territorial disputes, and fighting unwarranted wars under the cover of outright lies.

As a result, the world is still crawling its way out of an economic disaster thanks to the voracious Wall Street elites, while bombings and killings have become virtually daily routines in Iraq years after Washington claimed it has liberated its people from tyrannical rule.

Most recently, the cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations' tremendous dollar assets in jeopardy and the international community highly agonized.

Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated, and a new world order should be put in place, according to which all nations, big or small, poor or rich, can have their key interests respected and protected on an equal footing.

To that end, several corner stones should be laid to underpin a de-Americanized world.

For starters, all nations need to hew to the basic principles of the international law, including respect for sovereignty, and keeping hands off domestic affairs of others.

Furthermore, the authority of the United Nations in handling global hotspot issues has to be recognized. That means no one has the right to wage any form of military action against others without a UN mandate.

Apart from that, the world's financial system also has to embrace some substantial reforms.

The developing and emerging market economies need to have more say in major international financial institutions including the World Bank and the International Monetary Fund, so that they could better reflect the transformations of the global economic and political landscape.

What may also be included as a key part of an effective reform is the introduction of a new international reserve currency that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.

Of course, the purpose of promoting these changes is not to completely toss the United States aside, which is also impossible. Rather, it is to encourage Washington to play a much more constructive role in addressing global affairs.

And among all options, it is suggested that the beltway politicians first begin with ending the pernicious impasse.


TOPICS: Business/Economy; Extended News; Foreign Affairs
KEYWORDS: china; deamericanizedworld; goldbugs; ntsa; reservecurrency; tylerdurden; tylerdurdenmyass; zerohedge; zeroiq

1 posted on 10/13/2013 10:57:23 AM PDT by RKBA Democrat
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To: RKBA Democrat

If Mao can hear them from where he is chained in Hell — then Mao would approve.


2 posted on 10/13/2013 11:00:15 AM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: RKBA Democrat

And the Free Traders who support Free Trade with Communist China support all this

You raise tariffs on the Communist Chinese products...and this nonsense stops


3 posted on 10/13/2013 11:00:49 AM PDT by SeminoleCounty (Fact Is: GOPe want ObamaCare.)
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To: RKBA Democrat

And so the USA officially attains 3rd world status thanks to the big eared donkey(democrat) Obama


4 posted on 10/13/2013 11:00:50 AM PDT by Democrat_media (IRS rigged election for Obama and democrats by shutting down tea party)
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To: RKBA Democrat

5 posted on 10/13/2013 11:01:03 AM PDT by EBH ( The Day of the Patriot has arrived.)
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To: BenLurkin

“If Mao can hear them from where he is chained in Hell — then Mao would approve.”

Most definitely. The tactics have changed, but the end goal hasn’t.


6 posted on 10/13/2013 11:02:24 AM PDT by RKBA Democrat (Power disintegrates when people withdraw their obedience and support)
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To: EBH

That slogan makes no sense.


7 posted on 10/13/2013 11:02:28 AM PDT by Vince Ferrer
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To: Vince Ferrer

Russian President Shows “New World Currency” At G-8 Summit
http://www.worthynews.com/8371-russian-president-displays-new-world-currency-coin-at-g-8-summit


8 posted on 10/13/2013 11:04:56 AM PDT by EBH ( The Day of the Patriot has arrived.)
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To: Democrat_media

“And so the USA officially attains 3rd world status thanks to the big eared donkey(democrat) Obama.”

Don’t forget to thank diane feinstein as well.


9 posted on 10/13/2013 11:06:53 AM PDT by RKBA Democrat (Power disintegrates when people withdraw their obedience and support)
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To: RKBA Democrat
Given the present course, there is no doubt that the dollar will fail catastrophically.

Currently there is no currency that is worthy enough to replace it, but that does not mean that one cannot rise to the necessary standard.

10 posted on 10/13/2013 11:11:39 AM PDT by Navy Patriot (Join the Democrats, it's not Fascism when WE do it, and the Constitution and law mean what WE say.)
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To: Navy Patriot

“Currently there is no currency that is worthy enough to replace it, but that does not mean that one cannot rise to the necessary standard.”

The Chinese are trying:

http://www.freerepublic.com/focus/f-news/3078394/posts

They’re not doing this because they think gold is pretty. They’re looking to be the next reserve currency complete with significant gold reserves to back it.


11 posted on 10/13/2013 11:23:19 AM PDT by RKBA Democrat (Power disintegrates when people withdraw their obedience and support)
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To: RKBA Democrat
The Chinese are trying

Indeed they are, in numerous ways. Resources and technology, they have about cornered the world's supply of rare earth elements, excluding Russia, and would delight in issuing the world currency of exchange for petroleum, commodities and fungibles.

The Middle Kingdom, run by Communist Oligarchs. ........Think about that sentence.

12 posted on 10/13/2013 11:34:13 AM PDT by Navy Patriot (Join the Democrats, it's not Fascism when WE do it, and the Constitution and law mean what WE say.)
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To: RKBA Democrat

Will YObama and the dimocraps blame Bush or the Republicans when the US has to buy the new world currency with inflated US dollars in order to buy foreign oil.....which we don’t need to do because we can become self sufficient.....if the dimocraps quit promoting “environmental concerns”.


13 posted on 10/13/2013 11:35:52 AM PDT by Dapper 26
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To: RKBA Democrat
This is unfortunately a likely scenario

What keeps USA prominent is an
innovating nature and strong work ethic,
both are waining rapidly.

The Chinese version of
Communism / Mercantilism / Capitalism
Is designed to win the long race.

If they can fix their problems with Corruption,
Inverted Population Curves 117:100 Male/Female,
and build a strong middle class...

14 posted on 10/13/2013 12:15:54 PM PDT by HangnJudge
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; cardinal4; ColdOne; ...
Double Facepalm

15 posted on 10/13/2013 12:16:42 PM PDT by SunkenCiv (It's no coincidence that some "conservatives" echo the hard left.)
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To: SeminoleCounty

Yup.

China has taken advantage of America for a full generation.

American businesses are now almost all, sold out.

BRING THEM BACK.

Now.


16 posted on 10/13/2013 12:18:13 PM PDT by Cringing Negativism Network
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To: HangnJudge

A lot of the worlds population is much more concerned about their economic well being than they are about personal liberty.


17 posted on 10/13/2013 12:22:30 PM PDT by RKBA Democrat (Power disintegrates when people withdraw their obedience and support)
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To: RKBA Democrat

It will never happen. For a lot of reasons. They can’t even float their currency now and it’s hard to get ahold of any yuan denominated bonds. No one trusts that government with a significant amount of money, most especially their own elite. They remain relatively poor, a per capita of like $11,000 with a generous PPP. Their working age population has peaked and is in decline.

Also, there isn’t enough gold out there. Most gold is paper IOU’s. The gold market is tiny compared to the US bond market.

China is screwed and they now it. Because if the dollar crashed their central bank, holders of 2 trillion plus in dollars, is bankrupt. And they are blocked from significant purchases in the West, unless you count housing in Palo Alto.

Where are you going to put your money ? If the U.S. goes, the entire world goes. There is nothing to replace it and there won’t be for as long as the horizon.

To be honest, if there was default on short term treasuries, people would probably just move into 10 year and we would see an inverted curve.


18 posted on 10/13/2013 12:31:46 PM PDT by sunrise_sunset
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To: Navy Patriot

Rare earth elements aren’t rare. They are just extremely polluting, which is why the U.S. doesn’t mine its own significant supply. That can change with one piece of legislation.


19 posted on 10/13/2013 12:33:06 PM PDT by sunrise_sunset
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To: RKBA Democrat

“”US fiscal failure which warrants a de-Americanized world””

De-Americanized world? That is inevitable as a result of the De-Americanized America we have under Obama.


20 posted on 10/13/2013 12:38:14 PM PDT by RFEngineer
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To: Navy Patriot
The Middle Kingdom, run by Communist Oligarchs. ........Think about that sentence.

Indeed, it will fail, ultimately, but only after a lot of pain and suffering.

21 posted on 10/13/2013 2:06:50 PM PDT by VRW Conspirator (Producing Talk Show Prep since 1998.)
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To: RKBA Democrat
Will Red China loose its sovereignty and be totally absorbed in a world government in this "new world order?"

About time Commies started practicing what they preach.

22 posted on 10/13/2013 3:37:53 PM PDT by Zionist Conspirator (The Left: speaking power to truth since Shevirat HaKelim.)
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To: Zionist Conspirator

What commies preach was encapsulated in George Orwell’s Animal Farm: all animals are equal, but some are more equal than others.

Expect the chi-coms to stick to that.


23 posted on 10/13/2013 4:26:18 PM PDT by RKBA Democrat (Power disintegrates when people withdraw their obedience and support)
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