Monday, March 23, 2009

Head of China's Central Bank Proposes New World Currency

There have been rumors and announcements from China about a new reserve currency.

And the IMF has said that it is considering printing hundreds of billions of dollars worth of its own currency.

Today, the two stories came together in a dramatic development. Specifically, the head of China's central bank proposed making the IMF's currency the world's reserve currency, to replace the dollar.

Is this the start of a huge change, or just more posturing ahead of the G-20 summit next month?

Given that a U.N. panel will recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, the attack on the dollar from Geithner and Bernanke's various actions, and the fact that IMF is independently talking about printing large quantities of its own currency, the possibility that this is real cannot be totally dismissed.

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4 comments:

  1. AnonymousMarch 23, 2009 at 5:14 PM

    Here is a comment on Putin about this earlier this month.

    http://www.itar-tass.com/eng/level2.html?NewsID=13645841&PageNum=0

    “It is rumoured that a new currency will appear by the summer, neither the dollar, nor the euro, nor anything else,” unemployed Yelena Romanova, who is registering at the Podolsk Employment Centre, said during Putin’s visit on Wednesday.

    “These are rumours. American political and fiscal authorities will never agree to give up the dollar and will fight for it to the end,” Putin replied.

    ReplyDelete
  2. b4freedomMarch 23, 2009 at 6:10 PM

    Will this cause the dollar to collapse? If so, how do you protect yourself?

    ReplyDelete
  3. Justin MillerMarch 23, 2009 at 11:04 PM

    buy gold. it will hold its value in the international market

    ReplyDelete
  4. Tom DennenMarch 24, 2009 at 2:30 AM

    AS GOOD AS GOLD!

    Perhaps China has studied the economic history of the West and has decided not to buy into a controlled economic demolition and war every fifty or sixty years since the South Sea bubble burst in the early 1700's.

    If they back their currency with tangibles, join the currencies now in the 'Special Drawing Rights' (SDR) basket with the dollar, Euro, Pound and Yen ...

    If they operate a federal or national reserve bank that is against the law to be privately owned ...

    If they regulated their monetary systems and outlawed usury (compound interest) ...

    ... Why, Chinese money could be as good as gold!

    ReplyDelete

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