Tuesday, March 24, 2009

 

China Wants to Dethrone the Dollar

Hey kids, is it really so farfetched to think the dollar (and US Treasurys) will crash this year? As this article reports:
China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a 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”.

My colleague (who emailed me the story) said, "Bob, isn't this traditionally referred to as gold?"



Comments:
You can't print gold though. How much do you want to bet they'll institute a Global Fed to control the supply of "globos"
 
Obama just said he's against this idea. See if he changes his mind once he (with the help of Geithner and Bernanke)completely runs the dollar into the ground and the Chinese start dumping T-bills.
 
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