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Russia: New world reserve currency a decade away

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posted on Jun, 6 2009 @ 12:38 PM
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Russia: New world reserve currency a decade away


rawstory.com

Moscow’s finance minister says China’s Yuan the ’shortest path’ to new world reserve; predicts ‘new major currency unions’ not soon to emerge

Developed nations are dragging their feet over reforms of the International Monetary Fund, where Moscow wants to have a greater say, Russian Finance Minister Alexei Kudrin said on Saturday

Kudrin also said that the Chinese yuan could become a global reserve currency in a decade if Beijing moves to “liberalize” the country’s economy.
(visit the link for the full news article)




posted on Jun, 6 2009 @ 12:39 PM
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Interesting thought that but yet, a baseless claim. The Yuan is not going to replace the Euro or Dollar anytime soon as global reserve currency. As long as the West is as powerful as it is, there is not going to be a switch to the Yuan. Additionally, China is economically not stable and developed enough to back a global reserve currency. They lack a middle class and a reliable reputation.

Additionally, the vast majority of foreign (direct) investment is still being invested in Europe and I see no reasons why that would soon change. The Central European market are particularly considered to offer less risky investment opportunities than China, but nevertheless high return on investment rates.

I do think, however, that the Dollar is going down. Initially, that will be catastrophic for Americans, but in the longer-term it will hit China and other emerging ''enemies'' harder than the US itself. China for instance is one of the biggest US treasury bond holders and that cannot be changed. Should they decide do dramatically sell US t-bonds, the Dollar would collapse and since their home market has a relatively small middle class, the consequences will be catastrophic. In other words, China is still very dependent on exports (even though some are pretending exports account for only 10%). What happens if the Dollar collapses? China will end up with treasure bonds worth nothing while America could implement a new currency and rebuild its economy swiftly than China ever could.

The new currency that will be implemented in the US (and possibly Canada and Mexico) will replace the Dollar as global reserve. Simultaneously, the Euro will gain a more dominant position.

What do they think? That the Rothschilds and Rockefellers are going to hand over their empire to China?




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



 
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