China Calls For Creation Of New Currency To Replace Dollar As Global Standard

Wall Street Journal:

BEIJING -- 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.

Read the whole story: Wall Street Journal

Comments

[BigSurScott]

China and the US in financial terms are like a pair of dogs stuck in copulation, with a bit of quantum mechanics thrown in, as it is impossible at any given moment to know which position either party is in.

[MrHacks]

Been there, done that. Didn't work.

Since the North American Union became a big FLOP (seriously, who in there right mind was going to devalue the dollar to be compatible with the Mexican Peso?), the uberrich have decided to take their environmental and economic destruction EAST!

A proposed union between Russia, China, and possibly India (deja vu) now seems to be in the works. As goods are cheep, environmental standards are lax, human rights are scoffed at, and unions are frowned upon. With the embolded American spirit, the openness in government, and unrestricted access to information, North America wasn't the best laid plan for the Illuminati (which is really the uberrich who don't give a hoot). Clearly, no one in this group was ever read The Lorax as a child.

So while we are busting our butts to clean things up here in the Western World, the Eastern World continues to sully the environment in the name of the economy. Its like filling up one hole while someone else digs another.

[xtiangodloki]

This news is dumb. The reason why China is acting this way is to test the Obama administration and see what it will do.

It should go without saying that not only China, but most nations who have much US debt would want the US dollar value to go back up. But the reality is that will never happen.

[holeybuybull]

Be careful China. This is one of the undisclosed reasons for the invasion of Iraq. Saddam was considering the Euro to replace our currency for the trading of oil.

[WasteNJ]

No surprise here. China has a very methodical and measured way of looking at things like this, no doubt they have been planning the timing of the announcement for some time. It's ironic because China has always manipulated it's own currency's value downwards. On the other hand, any nation that holds as much US debt as they do, definitely gets listened to.

Russia, China, and the rest are no doubt weary of the US dominated global economy, especially after Bush. Now with the US economy in the toilet, the traditional counter-balances to US power are growing more bold.

[motoGpifupleez]

Just wait until OPEC demands that oil be valued in a currency other than dollars. That is when things will really get interesting.

[WasteNJ]

I don't think OPEC will make that move on their own. They know that there isn't any viable alternative to the Dollar, and the closest thing is the Euro.

[netzwerg]

In 2-3 years the US will be known as "West-China".

[corujoj]

I propose a new currency called the "Wang". surely the chinese will not want to show they are short on wang, so they will be more open to floating currency. Everyone would want to have plenttiful wang and would be very careful with it. We americans will surely want to lead globally to show that we have quite a large wang reserve out there.. We will then see who truly has the largest wang reserve out there.

[JohnA581]

rotfl!!

[Kache]

My wang's biger that your wang, here, look....

[Roxie74]

I've been saying this every since I've been on HP, and the pseudo-genius bloggers on here wrote me off as a wacko conspiracy theorist. Welll here it is in black and white, now deal with it. Total economic takeover of our wonderful country. We cannot let this happen, this is everything our Founding Fathers warned against.

[netzwerg]

Our founding fathers warned against so much... But I guess its too late, people didnt wake up and still dont wake up.

[peterg76]

It's a give-away, not a take-over.

[Mikeeee]

You completely missed what the founding fathers warned against and you've been cheer leading the banks I'll bet.
Washington, Jefferson, Franklin all warned against what is essentially the FED. The total economic takeover was achieved in 1913 with the final creation of the FED. Your warning is a little late.

[TJCole]

Geithner and Bernanke are selling us out to China..who do you think is gonna be buying up all these Toxic Assets..?

Wait till the Red Chinese hold your Mortgage..!

[Hdaryl01]

They already do........­......chec­k the Chinese holdings of Fannie Mae and Feddie Mac.......­..........­..

[yappnmutt]

i think all of you might want to look at the conditions that allowed, indeed forced, the tranfer of the pound sterling as the world's reserve currency to the dollar.

the current conditions for the dollar are similar. beware.

money is not inherently patriotic. it flows like water down the path of least resistance. the money flow is towards asia and is draining from the west in general but significantly from the usa. it won't happen overnight but it will happen.

let's hope war does not become the manifestation of the death throes of the usa as history suggests.

[take10]

Bush got us in debt to China. Now we are headed toward third world status. Now, if the present administration is convinced by the republicans and a few disgruntled Democrats in congress to do nothing about the economy, we'll get there in a hurry! This usually happens when a country is sold to benefit the rich...

[BPCentrisAmerican]

Maybe it's time to pull American business out of China and let them go back to riding around on bicycles, when China can survive without foreign investment, than they can make the rules.

[netzwerg]

Nobody would buy a MacBook (which is made in China btw) for 3000$.

So I like my Made In China MacBook for 1000$.

[WasteNJ]

You must have the cheap one. It's a travesty that a "budget" Macbook is $1299 and made in China.
"We can't make a good laptop for less than a grand.." Probably costs them about $300.

[Liberal2]

Here's hoping your job goes to China so a socialist smarter than you can make a decent living.

[ImagesAndAdjectives]

Save $2000 on a made-in-China laptop, lose $80k when your job is eliminated and replaced a Chinese factory worker or engineer.

That's thinkin'!

[SolarPowerGuy]

Oooookay -- for years, China has artificially linked its currency to the value of the U.S. dollar, the very currency they now want to replace.

If China TRULY wants a new currency to replace the dollar, they might consider showing that they're serious by allowing the value of their currency to FLOAT.

[FairTalk]

LOL The US uses other means, but the resulkt is the same, and all countries "manipulate" the "value" of their currency in some way. The idea that China should allow their currency to "float" won't have good results, except for those who play currency roullttte.

[primeelite]

I think we need to look at some aspects of protectionism as that is what China has done to a certain degree and it has built their assets up way above other countries. With all of the slave labor in other countries we will not be able to survive and pay non-slave labor wages in manufacturing. If we isolate ourselves to a certain degree as far as less imports then we will be able to afford to pay higher wages and are dollar would become stronger. The problem just comes with our trade partners getting mad but pretty soon if things keep going the way they are we won't be able to consume at the rate we were anyways so they would see that drop off either way.