Here is your new currency:
Posted on 06/30/2009 2:17:33 PM PDT by FromLori
China is again calling for a global currency.
"To avoid intrinsic shortcomings in using a sovereign currency as a reserve currency, we need to create an international reserve currency that is divorced from sovereign states and can maintain a stable value over the long term," according to a new People’s Bank of China report.
Economists doubt the U.S. dollar will be replaced anytime soon, but China’s latest urging sent the dollar and U.S. stocks down. After Chinese Premier Wen Jiabao expressed concern about China’s large dollar-based holdings in March, Chinese investors dumped $4.4 billion of Treasuries.
Investors are wondering if the Chinese, who hold more U.S. Treasurys than anyone, will avoid the dollar and diversify into other currencies. That could cause problems for the Obama administration’s ballooning deficit and push up rates for mortgages and other loans.
The Chinese argue that reliance on a single country’s currency increases economic volatility. They want the International Monetary Fund to use more Special Drawing Rights, or SDRs, an artificial currency based on a basket of major currencies.
Turning SDRs into a global currency is a long-term possibility, said John Lipsky, a top IMF official.
“The idea of a global currency determined by a multilateral organization is not new," Lipsky said at an earlier press conference.
“It’s a serious proposal and I don't think even the proponents think of it as a short-term issue, but rather a longer-term issue that merits serious study and consideration,” he said.
(Excerpt) Read more at moneynews.newsmax.com ...
“we need to create an international reserve currency that is divorced from sovereign states and can maintain a stable value over the long term”
Backed by WHAT? More Fiat
The drum beats louder for the coming day when the world figures out a way to unshackle its economy from the dollar.
New World Order new world currency we are doomed.
Maybe it could be based on the values of a number of currencies, like the DOW. I don’t think their problem is with the dollar per se, but with the volatility, especially with that which is coming.
I can see the Kenyan Marxist ordering Ft. Knox opened up and our gold being shipped out and sent to the Arabs and Chi-Comms. He despises America, after all, and works hard to destroy it.
Americans should rue the day that the dollar was made the international reserve currency. It’s accomplished nothing but the hollowing out of our manufacturing economy. I say call their bluff.
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