China calls for new global currency

China calls for new global currency

news.yahoo.com

BEIJING – China is calling for a new global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week's London summit on the financial crisis.

The surprise proposal by Beijing's central bank governor reflects unease about its vast holdings of U.S. government bonds and adds to Chinese pressure to overhaul a global financial system dominated by the dollar and Western governments. Both the United States and the European Union brushed off the idea.

The world economic crisis shows the "inherent vulnerabilities and systemic risks in the existing international monetary system," Gov. Zhou Xiaochuan said in an essay released Monday by the bank. He recommended creating a currency made up a basket of global currencies and controlled by the International Monetary Fund and said it would help "to achieve the objective of safeguarding global economic and financial stability."

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[edit on 25-3-2009 by 12m8keall2c]

Zhou did not mention the dollar by name. But in an unusual step, the essay was published in both Chinese and English, making clear it was meant for a foreign audience.

China has long been uneasy about relying on the dollar for the bulk of its trade and to store foreign reserves. Premier Wen Jiabao publicly appealed to Washington this month to avoid any response to the crisis that might weaken the dollar and the value of Beijing's estimated $1 trillion in Treasuries and other U.S. government debt.

news.yahoo.com
(visit the link for the full news article)

You know we're in trouble when CHINA is supporting the IMF.

Deep trouble.

Ruh oh Raggy.

This isn't good.

What's so bad about this? If we put the whole world in the same situation we would have to work together at least and not just look after ourselves as much as we do now. It all comes down to how the system works, if it's like America but global it wouldn't solve anything. Personally I like the Canadian banking system, if it could be adapted/improved so that it works for the whole world I would support it.

How does the IMF fill its positions by the way? Appointed by heads of state?

And I believe China currently has about a 50/50 split between Dollars and Euros in their reserves

[edit on 25-3-2009 by DJones]

We have one, its called "gold" and the sooner we go back to it the sooner we can reign in these ridiculous money-printers and get back to some honest banking.

reply to post by The Last Man on Earth

We have one, its called "gold" and the sooner we go back to it the sooner we can reign in these ridiculous money-printers and get back to some honest banking.

When do you think that's going to happen?

America wants to hold the world hostage with it's sick, over-inflated, over-valued, deadbeat currency which is worth maybe 2/3's of the paper it's printed on.
If everyone deals in American prices for bonds, stocks, treasuries and forms of usury, America profits by default by providing unfair and overvalued exchange rates.

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