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View Full Version : This Is It: China calls for new reserve currency



He Who Pawns
03-23-2009, 05:23 PM
http://www.ft.com/cms/s/0/7851925a-17a2-11de-8c9d-0000779fd2ac.html?nclick_check=1


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.

This is what we all feared. This is what Dr Paul, Schiff and others have said would happen either this year, or in 2010. Now it's happening. If you have any Dollars in the bank, buy gold now, or forever rest in peace.
qh4dotcom
03-23-2009, 05:31 PM
It had to come sooner or later...

anyway I don't think "this is it" as you said...the big event that needs to happen is for China to announce that they are not buying Treasuries and even worse for them to begin dumping Treasuries....that "WILL BE IT"

Also it's not that significant until the media starts covering it.
Athan
03-23-2009, 05:35 PM
I agree. However there are investors that are listening to this type of news in bonds.
dannno
03-23-2009, 05:36 PM
Didn't I just read an article that completely contradicted this recently??

Why is China going back and forth about buying treasuries and then the next day talking about selling and creating a global currency??
A. Havnes
03-23-2009, 05:38 PM
I don't want a global currency at all!
FrankRep
03-23-2009, 05:42 PM
International Monetary Fund (IMF) set to be the World's Federal Reserve!

http://www.ronpaulforums.com/showthread.php?t=182725
heavenlyboy34
03-23-2009, 05:43 PM
Didn't I just read an article that completely contradicted this recently??

Why is China going back and forth about buying treasuries and then the next day talking about selling and creating a global currency??

Perhaps they are toying with their prey. :eek:
FrankRep
03-23-2009, 05:50 PM
Didn't I just read an article that completely contradicted this recently??

Why is China going back and forth about buying treasuries and then the next day talking about selling and creating a global currency??
Dollars will be exchanged for the new currency, plus China can push us around because they literally OWN us.
tremendoustie
03-23-2009, 05:54 PM
It had to come sooner or later...

anyway I don't think "this is it" as you said...the big event that needs to happen is for China to announce that they are not buying Treasuries and even worse for them to begin dumping Treasuries....that "WILL BE IT"

Also it's not that significant until the media starts covering it.

It's significant when it actually happens. For now, China is blowing smoke. If this actually happens, we're toast with no jam.
MelissaCato
03-23-2009, 06:01 PM
“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”.

... humm it says "that is disconnected from individual nations", wouldn't this mean we can still save the dollar and be concidered independent as a nation with gold and silver as legal tender ?

Putin, I believe, last week said pretty much the same thing Xiaochuan just said.
He Who Pawns
03-23-2009, 06:12 PM
I don't want a global currency at all!

What if it was backed by gold?? :D
JoshLowry
03-23-2009, 06:14 PM
What if it was backed by gold?? :D

Gold is a global currency. ;)

Of course China has something in mind that is most likely made out of paper or electronic ones and zeros.
tremendoustie
03-23-2009, 06:22 PM
What if it was backed by gold?? :D

What I really want is no more legal tender laws. A mandated gold backed currency will only be corrupted again, and would not be as efficient as simply allowing people to choice.
slacker921
03-23-2009, 06:27 PM
It's their way of asking/demanding for something extra special. "Most Favored Nation".. ha, they're going to get the good stuff now. Bend over.
tremendoustie
03-23-2009, 06:36 PM
It's strange, I would have expected a bigger drop in the dollar on this news, especially with the big market gains ...
Original_Intent
03-23-2009, 06:38 PM
Didn't I just read an article that completely contradicted this recently??

Why is China going back and forth about buying treasuries and then the next day talking about selling and creating a global currency??

I am sure there is something in Sun Tzu about it. Misdirection, confusion, etc.
He Who Pawns
03-23-2009, 06:41 PM
It's strange, I would have expected a bigger drop in the dollar on this news, especially with the big market gains ...

markets open early tomorrow... this news hit late.
tremendoustie
03-23-2009, 06:45 PM
markets open early tomorrow... this news hit late.

The dollar trades 24/7 though.
He Who Pawns
03-23-2009, 06:55 PM
The dollar trades 24/7 though.

No moves? :confused:
Bruehound
03-23-2009, 07:26 PM
It's front page of Drudge but USD trading flat. Odd.