Is China trying to destroy the dollar?

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posted on Jun, 26 2009 @ 04:36 PM
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China argues to replace dollar


China's central bank has reiterated its call for a new reserve currency to replace the US dollar.

The report from the People's Bank of China (PBOC) said a "super-sovereign" currency should take its place.

"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," the PBOC report said.


The dollar dropped a point against the Euro and %0.8 against the pound on that news.

China losing taste for US debt

Now what puzzles me is the fact that China owns so much US debt, that a collapse of the dollar would surely hurt them. Also their exports would collapse too.

So we're basically seeing efforts by China to destroy a currency which would hurt them immensely.


HONG KONG — China has bought more than $1 trillion of American debt, but as the global downturn has intensified, Beijing is starting to keep more of its money at home, a move that could have painful effects for American borrowers.

The declining Chinese appetite for United States debt, apparent in a series of hints from Chinese policy makers over the last two weeks, with official statistics due for release in the next few days, comes at an inconvenient time.

But now Beijing is seeking to pay for its own $600 billion stimulus — just as tax revenue is falling sharply as the Chinese economy slows. Regulators have ordered banks to lend more money to small and medium-size enterprises, many of which are struggling with lower exports, and to local governments to build new roads and other projects.

“All the key drivers of China’s Treasury purchases are disappearing — there’s a waning appetite for dollars and a waning appetite for Treasuries, and that complicates the outlook for interest rates,” said Ben Simpfendorfer, an economist in the Hong Kong office of the Royal Bank of Scotland.


So it doesn't make sense until you read this:

China s yuan set to usurp US dollar as worlds reserve currency


Professor Roubini, of New York University's Stern business school, believes that while such a major change is some way off, the Chinese government is laying the ground for the yuan's ascendance.

Known as "Dr Doom" for his negative stance, Prof Roubini argues that China is better placed than the US to provide a reserve currency for the 21st century because it has a large current account surplus, focused government and few of the economic worries the US faces.


Now it all becomes clear! Because I'm sure the Chinese have more Yuan than Dollars!

So it looks quite possible, that there is a Chinese plan to destabilise and destroy the Greenback!




posted on Jun, 26 2009 @ 04:49 PM
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It looks to me more like China has been persuaded, cajoled or blackmailed into joining the global currency bandwagon.

Check this out from the BBC article cited above:


Central bank chief Zhou Xiaochuan has loudly led calls for the dollar to be replaced during the financial crisis.The bank report called for more regulation of the countries that issue currencies that underpin the global financial system.

"An international monetary system dominated by a single sovereign currency has intensified the concentration of risk and the spread of the crisis," the Chinese central bank said...


SDRs

Mr Zhou caused a stir earlier this year when he said the dollar could eventually be replaced as the world's main reserve currency by the Special Drawing Right (SDR), which was created as a unit of account by the IMF in 1969.


And this is precisely what the PTB moved towards at the G20 summit a couple of months ago.





[edit on 26/6/09 by pause4thought]



posted on Jun, 26 2009 @ 04:53 PM
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The United States doesn't need China to destroy the dollar; we can do it all by ourselves.



posted on Jun, 26 2009 @ 05:05 PM
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reply to post by kiwifoot
 


Pay much closer attention to what you are reading and searching for on this subject. It is NOT only China that wants to see the USA come down on this. It IS the BRIC alliance of countries that are planning on coming out on top as the new controller's of all financial systems the world over.
They have bided their time and positioned themselves well in order to actually do it. They have what they need to make it happen with out destroying themselves.
I mean after all they have had numerous DECADES to do it in. While we sat by and allowed our corrupted officials to be bought and sold; our entire country was slowly sold away also. With it went most of what we needed to be able to keep ourselves afloat and able to at least come out with some form of industry other than "banking".
Very soon you will begin to hear the others in the BRIC start the takeover battle cry also. People are wrong to think it is going to take a "war" for them to do this; they ALREADY HAVE!



posted on Jun, 26 2009 @ 05:06 PM
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reply to post by pause4thought
 


Yes but its a global *reserve* currency which i think is a good thing as no one country has absolute power.As for China,the asian markets are growing,the EU consumer market is growing and currently at five hundred million strong..plus why would exports suddenly collapse? Any way you look at it,China is going to be the new big player in the world and overtake everyone else rapidly,europe is also going to be an even bigger power if we keep slowly but surely becoming a super state,we are already an economic powerhouse.Thats just how things work and will continue to..the world isn't stagnant.And lets not forget India.



posted on Jun, 26 2009 @ 05:21 PM
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reply to post by Solomons
 



Yes but its a global *reserve* currency which i think is a good thing as no one country has absolute power.

Really? The IMF could easily become a global Fed.

And the Euro started life as the ecu - not a full-blown currency, but it's forerunner.

I'm getting deja vu here.






[edit on 26/6/09 by pause4thought]



posted on Jun, 26 2009 @ 05:40 PM
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reply to post by pause4thought
 


Well thats true,but whats the alternative exactly?
should the dollar have a thousand year reich no matter what? we do need an alternative for the future...

[edit on 26-6-2009 by Solomons]



posted on Jun, 26 2009 @ 05:41 PM
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It should be noted that China's Yuan does not hold a place in the valuation of the SDR. Nor are they planning on buying their way in. Wants BRIC to make that decision, likely by making the Yuan stronger by engaging in currency swaps...Like they have been...

Are they trying to destroy the dollar? No exactly, we're doing that, they're just taking advantage of an advantageous circumstance.



posted on Jun, 26 2009 @ 05:48 PM
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reply to post by Solomons
 



Well thats true,but whats the alternative exactly? should the dollar have a thousand year reich no matter what? we do need an alternative for the future...

The alternative to a fiat currency is a gold standard. It makes perfect sense in terms of long-term stability - unless you want to manipulate an economy and/or its currency for goals other than the common good.



posted on Jun, 26 2009 @ 05:49 PM
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Originally posted by projectvxn
It should be noted that China's Yuan does not hold a place in the valuation of the SDR. Nor are they planning on buying their way in. Wants BRIC to make that decision, likely by making the Yuan stronger by engaging in currency swaps...Like they have been...

Are they trying to destroy the dollar? No exactly, we're doing that, they're just taking advantage of an advantageous circumstance.


Exactly, the most advantageous situation for china, is if the US stops printing money like it is water, stops spending recklessly, and revalues the dollar on the international market.

This will, by default revalue china's US bond holdings, and secure china's position as a strong US trade partner (Lucrative)

The collapse of the dollar is NOT advantageous to china, but that does not mean that we should expect them to just stand around holding their ^%$#$ while the Global financial markets collapse.

The dollar is failing because of the UNITED STATES GOVERNMENT.

China is merely trying to cushion the blow.

-Edrick



posted on Jun, 28 2009 @ 04:14 AM
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China is looking for alternatives, but not to destroy USD.



posted on Jun, 28 2009 @ 05:02 AM
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Each of us should be just as concerned about the US dollar as China.

I hate fiat money. It's a cheating Ponzi scam. Think about that hours wage you earn today. Can you put that into your pocket and pull it out 10 or 20 or 30 years from now and still buy the same things with it as you can today? NO! Why? Because fiat money is a SCAM .. it allows OTHERS to jack you of your hard earned wealth. Put that hours wage in a mattress for 30 years and then take it out and try to spend it and you'll discover someone just STOLE 80% ... maybe 90% of it from you. THAT is the big nasty secret about funny money that many fail to realize. Now, if we were on some other kind of monitory standard, where each dollar was backed up by something tangible, such as gold, then that dollar could retain it's original value and nobody could be jacked by the PTB and their fiat Ponzi scam of enslavement.

We should all be insisting that fiat money be eliminate, fiat money should be illegal. Of course, it's unlikely that the PTB will ever go for that, because they would loose their strangle hold on their slaves. If they couldn't jack your wealth by devaluing the dollar, we all might become pretty well off. Everybody should convert their saved wealth to something tangible, such as gold. NEVER store and save your wealth in fiat funny paper. We could destroy the dollar simply by NOT using it as a means to secure our hard earned income. Convert, people, convert, ha. Fiat money is a suckers scam.



posted on Jun, 28 2009 @ 02:13 PM
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You don't win a war without taking any losses. What your enemy least expects is often the best move. The US had thought China was so tightly tied to the US economy and dollar that they would do anything to keep it propped up. China might do the unthinkable and change the dynamics of the game. I don't pretend to know their endgame but they aren't as stupid as federal reserve thinks they are.



posted on Jun, 30 2009 @ 04:19 AM
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Originally posted by Totakeke
The United States doesn't need China to destroy the dollar; we can do it all by ourselves.


Exactly. The death of the dollar is unavoidable at this point, crushed by an untenable mountain of debt. China is just recognizing the inevitable, and positioning themselves to make the best of it.

That being said, China is the next USA. It’s been planned for some time and the 888 Olympics should have been the only harbinger necessary for those with eyes to see.





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