Good bye dollar?

**Chubby** · 03-28-2009, 11:36 AM

03/27/2009 17:46

Maybe it is time to learn from other country to how do business. Our corporations are too corrupted and irresponsible.

ASIA – UNITED STATES

Goodbye dollar? G20 summit to discuss a single world currency
China, but also Russia, Brazil, India, South Korea and South Africa are lining up behind the idea, unhappy by the way the United States is handling the current crisis. But a single, international reserve currency is not likely to solve all the problems; it might even lead to war, some believe.

Milan (AsiaNews) – The “Age of the dollar” might be at an end. The G20 summit in London is likely to address the issue of whether to replace the US dollar as the world’s reserve currency or not. The current global financial crisis is forcing some rethink how the world economy might be reformed. A single international reserve currency might not be such a bad idea, according to Zhou Xiaochuan, China's central bank governor. Ending the supremacy of the greenback is not a new idea.

In a clear reference to the US dollar, Zhou said in article published on Tuesday that the desirable goal of the international monetary system is to “create an international 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.”

Created almost 40 years ago as a "basket" of major currencies (US dollar, the euro, the Japanese yen, and the pound sterling), the Special Drawing Right of the International Monetary Fund has the potential to be a super-sovereign reserve currency, Zhou said, who hinted that the Chinese yuan might be added to the basket

As the main holder of US dollars China is afraid that US policy might simple devalued its holdings. In particular China's central bank governor seems irked by the ways the United States is reacting to the economic crisis, by printing money and issuing treasury bills, which is causing the US dollar to drop in value.

In Europe countries like France and Germany might pursue strategies aimed at undermining the dollar and strengthening the euro, landing a huge blow against the United States.

Russia, India, Brazil, South Korea and South Africa too have called for discussions on an international currency to revamp the international monetary system.

The problem many analysts have noted (see AsiaNews of 9 December 2008) is that an international reserve currency needs an international central bank to manage national reserves, which would mean more bureaucracy, conflict of interests, political wrangling and fights for supremacy. And who knows, perhaps a war.

Some analysts even think that a war might break out in North-East Asia (Korean Peninsula) and the Middle East (Iran).

**min0 lee** · 03-28-2009, 03:37 PM

China, but also Russia, Brazil, India, South Korea and South Africa

Trust them??
African with it's age old scams.
China with it's counterfeiting history.
Brazil didn't know how to manage money until recently.
Russia....see China and Africa

**maniclion** · 03-28-2009, 03:45 PM

Chobby the commie infiltrator trying unsuccessfully to seed the west with fears of economic and moral decayisticisms but coming off as the gayest fistin' jism yeah I said you TREULL

**Big Smoothy** · 03-28-2009, 05:45 PM

Talk of a new global currency is not new. And it's only talk.

Any new global currency will be a basket of a few currency and some commodities.

Many believe the US dollar will decline because of recent printing, policies, selling t-bills etc.

Again, we'll have to wait and see.

**lnvanry** · 03-28-2009, 05:53 PM

soon enough a global curreny will be implemented, but I don't think that time is now...the economic crisis isn't harsh enough to resort to such radical change.

Paradigm shifts in global policy (like that of the League of Nations, UN, IMF, WBG, WTO etc) come out of sever global crisises....today is not equivelant to a world war or world depression.

**Chubby** · 03-28-2009, 06:32 PM

Originally Posted by min0 lee

Trust them??

Doesn't matter what we think. We are a part of globle communities where majority rules. Because of the economic muscle of China, there are more countries willing to back up China than us. In other words, China has more influence over them than we do.

**min0 lee** · 03-28-2009, 06:56 PM

Did you call them?

**min0 lee** · 03-28-2009, 06:59 PM

Originally Posted by chobby192

Doesn't matter what we think. We are a part of globle communities where majority rules. Because of the economic muscle of China, there are more countries willing to back up China than us. In other words, China has more influence over them than we do.

I don't think so.
How long till they implode? We will rebound sooner or later.
I don't trust the Chinese and neither do the Chinese.

**Chubby** · 03-28-2009, 08:19 PM

Originally Posted by min0 lee

I don't think so.
How long till they implode? We will rebound sooner or later.
I don't trust the Chinese and neither do the Chinese.

I have been following news about chinas foreign policy for a while so I know how China bully other countries by using its economic muscle.

**min0 lee** · 03-28-2009, 08:26 PM

So by being bullies they win people?
Arrogance will get you nowhere fast.

**Chubby** · 03-28-2009, 08:54 PM

Originally Posted by min0 lee

So by being bullies they win people?
Arrogance will get you nowhere fast.

Just like our corporations, these countries have been kowtowing to china in order to get their hands on the booming economy.

**Big Smoothy** · 03-28-2009, 10:51 PM

Originally Posted by chobby192

I have been following news about chinas foreign policy for a while so I know how China bully other countries by using its economic muscle.

The US does it.

Many other countries have done it, and do this.

In International Relations 101: if a nation-state has the power to influence, bully or use a place for its economic interest, it almost always does.

It's been going on for hundreds and thousands of years.

**KelJu** · 03-28-2009, 11:11 PM

That's funny. First of all, nobody how displeased I am with our current economic issues, we are still the best at making money. Every country in the world wants a piece of what we have.

**Big Smoothy** · 03-29-2009, 12:23 PM

Originally Posted by KelJu

That's funny. First of all, nobody how displeased I am with our current economic issues, we are still the best at making money. Every country in the world wants a piece of what we have.

Please be specific.

Do you mean, real-estate? It's the only thing.

**lnvanry** · 03-29-2009, 03:25 PM

GNP, infrastructure, GDP /captia, innovation, defense superiority....How about simple access to food and water? general opportunity?

I'm a bit surprised you think real estate is the ONLY thing that the world thinks the US is good for.

**min0 lee** · 03-29-2009, 04:01 PM

Originally Posted by lnvanry

GNP, infrastructure, GDP /captia, innovation, defense superiority....How about simple access to food and water? general opportunity?

I'm a bit surprised you think real estate is the ONLY thing that the world thinks the US is good for.

That's an understatement.

**Big Smoothy** · 03-30-2009, 01:08 AM

The US has many serious problems.

The US not good at making money at the moment. It's only good at printing money.

Over 70% of the US economy is driven by consumer spending.

Americans save very little, if at all of their money.

And the spend, you often borrow, which requires lending.

Making money? Yes, the Credit Default Swaps made money. So did the Collateralized Debt Obligations (CDOs).

Where are they now?

Making money? No. Lending and spending? Yes.

**nkira** · 03-30-2009, 06:43 AM

Originally Posted by min0 lee

Trust them??
African with it's age old scams.
China with it's counterfeiting history.
Brazil didn't know how to manage money until recently.
Russia....see China and Africa

Hey Mino what about India? Wont hold a grudge, swear.

**min0 lee** · 03-30-2009, 06:51 AM

India, hmmmm......my first impression about India...I can't seem to shake that image of the starving kids. I don't know too much about the Country.
Now the people that I have met here are very peaceful hardworking folks.
I see them as up and coming but not ready??

**lnvanry** · 03-30-2009, 08:59 AM

Originally Posted by Big Smoothy

The US has many serious problems.

The US not good at making money at the moment. It's only good at printing money.

Over 70% of the US economy is driven by consumer spending.

Americans save very little, if at all of their money.

And the spend, you often borrow, which requires lending.

Making money? Yes, the Credit Default Swaps made money. So did the Collateralized Debt Obligations (CDOs).

Where are they now?

Making money? No. Lending and spending? Yes.

just b/c we have serious monetary ( <-----probably our worst problem IMHO) and economic problems doesn't mean we aren't good for anything though.....just sayin

**Big Smoothy** · 03-30-2009, 12:08 PM

Originally Posted by lnvanry

just b/c we have serious monetary ( <-----probably our worst problem IMHO) and economic problems doesn't mean we aren't good for anything though.....just sayin

I didn't say the US wasn't good for anything, and I don't recall you stating this.

Things are ugly. I know. My family knows, first-hand. Brutal. Devastating. Vicious.

It will get worse.

We will wait, watch, and experience.

It's going to get A LOT WORSE.

**min0 lee** · 03-30-2009, 12:17 PM

Originally Posted by Big Smoothy

I didn't say the US wasn't good for anything, and I don't recall you stating this.

Things are ugly. I know. My family knows, first-hand. Brutal. Devastating. Vicious.

It will get worse.

We will wait, watch, and experience.

It's going to get A LOT WORSE.

I didn't notice any riots going on in the news.

**Big Smoothy** · 03-30-2009, 12:35 PM

^ I didn't use the word "RIOTS."

**min0 lee** · 03-30-2009, 12:54 PM

Brutal. Devastating. Vicious

Those are strong words.
We are managing, it's not like in other countries where people are starving and looting stores for food.

**Big Smoothy** · 03-30-2009, 09:15 PM

Originally Posted by min0 lee

Those are strong words.
We are managing, it's not like in other countries where people are starving and looting stores for food.

True, Min0.

But I know that many people cannot handle losing a house that has been paid into for years, because not only is the home lost, all of the payments and equity is gone, too. Car repos, and long-term unemployment. It's a cycle that feeds on itself.

I agree with you, that many other nations are far worse off.

**nkira** · 03-31-2009, 03:31 AM

I have to agree with you, starving kids is a burning issue. There are charities and foundations both government & private but basically there is so much corruption here nothing works.

For example take into consideration the mumbai aka bombay terrorist attack..as the time went by the issue is almost a cold case, nobody is bothered.

Thats why many indians move to USA and alike & prefer to stay there cos they get to keep what they earn and the taxation n duties are very transparent compared India.

It's really depressing......

Originally Posted by min0 lee

India, hmmmm......my first impression about India...I can't seem to shake that image of the starving kids. I don't know too much about the Country.
Now the people that I have met here are very peaceful hardworking folks.
I see them as up and coming but not ready??

**lnvanry** · 03-31-2009, 05:35 AM

Originally Posted by Big Smoothy

I didn't say the US wasn't good for anything, and I don't recall you stating this

Originally Posted by Big Smoothy

Please be specific.

Do you mean, real-estate? It's the only thing.

maybe I misunderstood you

**Chubby** · 03-31-2009, 09:39 AM

Americans don't seem to take it seriously, but chicoms are taking it very seriously.

Argentina, China sign tentative currency swap deal
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By JEANNETTE NEUMANN, Associated Press Writer Jeannette Neumann, Associated Press Writer – Mon Mar 30, 10:23 pm ET

BUENOS AIRES, Argentina – Argentina and China have tentatively agreed to swap $10 billion worth of their currencies to enable South America's second-largest economy to avoid using dollars in trade between the nations, banking officials said Monday.

It is the first such swap between China and a Latin American country, and allows Argentine businesses to buy Chinese imports directly in yuans. The move aims to help Argentina by cutting trading costs, giving it access to hard currency and strengthening its financial position as it is battered by the global financial crisis, analysts say.

China — which has been pushing to end the dollar's international dominance as a currency — has stuck similar deals to bypass the U.S. currency with South Korea, Malaysia, Belarus and Indonesia, the Xinhua News Agency reported.

The Argentina deal was announced by Zhou Xiaochuan, governor of the People's Bank of China, at the Inter-American Development Bank meeting in Medellin, Colombia. A source with the Argentine Central Bank confirmed it Monday, speaking on condition of anonymity because the announcement was not yet official.

Analysts said the swap could be an example of China's growing economic influence in Latin America.

China may be trying "to exert and deepen their global influence," said Win Thin, senior currency strategist at Brown Brothers Harriman in New York. "They've been investing in countries no one else really wants to touch" — such as mineral-rich countries in Africa and now Argentina.

Argentina primarily imports electronics, computers and chemical products from China, while the South American country exports agricultural commodities such as wheat, soy and corn, said Ernesto Fernandez Taboada, executive director of the Argentine Chinese Chamber of Production, Industry and Trade.

While the tentative deal could signal increasing Chinese interest in Argentina, its trade is far greater with neighboring Brazil. Brazil, the region's largest economy, represents 42 percent of Latin America's trade with China, while Argentina represents only 12 percent, Taboada said.

Argentine officials presented the tentative currency swap between the countries as a "contingency" plan to be turned to when necessary in order to shore up liquidity.

The swap would help Argentina by eliminating intermediate administrative steps required to exchange Argentine pesos for dollars and by shoring up liquidity in an indebted

**min0 lee** · 03-31-2009, 09:48 AM

Argentina really was in dire straits a couple of years back.

**lnvanry** · 03-31-2009, 10:09 AM

Originally Posted by min0 lee

Argentina really was in dire straits a couple of years back.

They still are...I have a very close friend down there and he never brings good news for the country's economy.

For common folk, they have begun to "decirculate" coin currency...organized crime circuits have begun to collect the coins and melt them down, since the metal is now worth more than the currency value itself.

Seems like a very investment for China to make...they are probably using Arg's natural resources as collateral.

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