China Wants IMF to Dump Dollar as World Currency

China wants the International Monetary Fund to set up a new system that is not dependent on the US Dollar as a Reserve Currency. China fears that the inflationary spending of the Obama Adm. Will devalue Treasury Bonds held in World Central Banks, causing a world monetary collapse.

After WWII international banks started investing in dollar denominated US Treasury Bonds, because the dollar was the strongest world currency. This created the saying that the “US is the richest nation on earth”. But the US overspending reliance on world banks to buy Treasury Bonds has turned the US into the world’s largest debtor nation and hence the poorest nation on earth, making Treasury bonds a bad investment.

When questioned about their opinion of a new world currency by Congress today, Fed. Chairman Bernanke and Treasury Sec. Geithner said they were absolutely against it. The reason of course is that a new currency instead of the dollar would be used in international trade transactions, relieving other nations from holding worthless US dollars. This Chinese proposal would put a stop to out of control US spending. China said John Maynard Keynes made a similar suggestion in the 1940’s. Too bad the US didn’t take this Keynesian advice then. Looks like Obama has accidentally created real change, although unintended and opposed by his administrations.

Update, when Obama was asked about China’s proposal at the Press Conference, he skirted the question and didn’t answer it.

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Submitted by The Shadow on Wed, 03/25/2009 - 12:14pm.

European Union Pres. Mirek Topolanek slammed Pres. Obama's plans to have the US spend its way out of recession as "road to hell", ahead of a crucial G-20 summit next week on fixing the world economy. And German Chancellor Angela Merkel warned that ever bigger bailouts create too much risks.

Submitted by mysteryman on Wed, 03/25/2009 - 8:23pm.

Since there will be no shortage of heat where we are going to end up, guess we might as well burn out instead of fade away guns blazing of course might as well finish in style.........BLESS

Submitted by skyspy on Wed, 03/25/2009 - 2:08pm.

oopppsss.... I mean even the huffington post has a story on this. Of course the puff and stuff dems. don't want to hear any opinion contrary to their own. We are all supposed to have open minds as long as we believe the rabid liberal bovine manure of the democratic party.

If you don't have the same opinions as a liberal democrat you are of course wrong. They don't want to know that there gasp might be other opinions out there and maybe, just maybe, some of that info is good info.

Question for the liberal huffle puff and stuff dems: if a libertarian, or atheist, or christian, or independant or conservative proponent of revolution, or gasp a republican party person expresses an opinion in the woods and no democrat huff/puff/rabid, entitlement program/welfare, liberal/class envy kind of person hears them ......are they still wrong??

diva's picture
Submitted by diva on Thu, 03/26/2009 - 3:24am.

trapped in an untenable position. After all, you admit that you did not support either Bush and you do not support our current president. That would put you in the position that you don't support the ideas of our past or present leadership. Being aligned with the teeny tiny minority fringe party now, that puts you firmly within the party void of ideas. Why do I say "void?" Well, does "cut taxes and cut spending" sound familiar? It was the spoken policy of those two Bushes you did not support. It was the spoken policy that neither Bush could implement even with Republican legislators. It is a farcical and unrealistic policy that has never been made reality. That is why those who pushed the "tax cut only" policies without being able to implement those policies are out of power. And there you are, on the sidelines with them heckling the new first string; which is fine. But, it SUREEEE would be nice to hear an original thought or idea to actually come from your side. Heck, Sky, you are hanging out with ear mark republicans who criticize earmarks. What's the message there?

Just give us some consistency. You yourself have chimed in on the "look at the stock market drop; It's because of Obama" ridiculous argument. So, Sky, why are you now not saying "look at that stock market rebound. It's because of Obama?" I'll answer for you: You guys have no ideas so all you can do is urinate in the sand, make mud pies out of the mix, and sling them hoping something will stick. Pretty much just ends up giving you dirty hands, but keep slinging. Eventually I guess we will all figure out that calling our country's leaders "fascists, communists, and socialists" is actually the expression of "republican ideas" and not, actually, "rabid bovine manure."

Thanks for all of the constructive ideas Sky. I'm sure we will all benefit from those wonderful ideas as soon as we embrace them.

ps. Stop trying to pin the "class warfare" argument on democrats, Sky. We just think that multi-millionaires should be audited just like us average Joes.


Submitted by skyspy on Thu, 03/26/2009 - 7:09am.

Both sides spend money like it is water. I don't think anyone denies that. The point is spending money like water hasn't worked in the past and is not likely to work now.

Bailouts preceded the great depression. They didn't work in the past and are unlikely to work now. The true picture of insanity is doing the same thing over and over again and expecting a different result.

China's idea of coming up with a new more stable currency is actually a good plan if the U.S. continues it's socialist meltdown.

Punishing people who work with higher taxes isn't the answer. Rewarding people who don't work via entitlement programs rewards people for not working. Eventually the people who work will see the wisdom of sitting around with the rest of the lazy people and the illegals and get their free check. Then who will be left to foot the bill for the free loaders?

When you reward failure all you get is more failure: Newt Gingrich

When you reward people for not working and or being illegal immigrants all you get is more of the same. Why change your behavior when you get rewarded for mooching by getting more free stuff.

Cyclist's picture
Submitted by Cyclist on Thu, 03/26/2009 - 6:55am.

You claim that the policy of cutting taxes and spending did not work so please explain to us how increasing the gap between inflow and expenditures is the key to our future. The CBO is acknowledging that President Obama's proposed budget contains a gap of $1.8 Trillion for its first year and then $1 Trillion each year thereafter.

We as a nation better pray that the moderates prevail on a budget that does not jeopardizes the future of this nation.

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Caution - The Surgeon General has determined that constant blogging is an addiction that can cause a sedentary life style.


diva's picture
Submitted by diva on Fri, 03/27/2009 - 9:27am.

"You claim that the policy of cutting taxes and spending did not work "

Not a claim of mine, Cyclist. This is fact. We have not, in your or my lifetime, had an administration balance the federal budget by cutting taxes. If I'm in error, I'll gladly retract that statement, which I believe is supported by history.

Here is the main rub, Cyclist: I'm not an economist, so I don't make statements with great certainty of what each policy enacted by a president will result in economically. I am fascinated by these "Economics for idiots" folks who make so many absolute statements and eat crow over and over because they are full of crap. It's astounding. These are the folks (Robert Morgan, "fred" the spineless counterfeit liar garvin, and many many others) who try to tie the DOW to the President. Of course Robert and friends come up with interesting BS to explain the rise now, but it just shows the asinine nature of these encyclopedia economists.


The Wedge's picture
Submitted by The Wedge on Fri, 03/27/2009 - 10:57am.

I agree that it is not really fair to tie the President to the economy per se--unless they are implementing policies that drastically affect the economy by fiat, without Congress. The private sector is the engine of the economy. Public monies are levied and budgeted by the Congress of the United States. Public monies are siphoned from the private sector. After serving in the army I can tell you that the financial mismanagement by the banks and investment houses are more than comparable with the financial mismanagement in the federal bureaucracy-not just the army. Comparing these two are an apple to apple comparison.

I think it is laughable to tar any particular party with spending, when both whore themselves around with glee. Congress for the past 50 years have mostly been run by the Democrats, including since 2006.
By the constitution, all money must be allocated by the US House of representatives. You can blame the previous administration and hold blameless the current one all you want. But when are you going to see that both parties are feckless wasters of our public money and are driving us into bankruptcy?

And let me ask another question- if you ran a business and had the choice of setting up shop in the US and paying 30% (don't know the exact number) tax on the ebitda or setting up shop across the border somewhere and pay only 5% tax on ebitda, wouldn't you try to maximize your profit? If the ruling elite pay there domestic help under the table to avoid payroll and employment taxes and generally get away with it, why do we get so angry at the companies that try to do it? And how many of the wealthier people on this blog do the same thing?


diva's picture
Submitted by diva on Fri, 03/27/2009 - 6:06pm.

"You can blame the previous administration and hold blameless the current one all you want."

I do not hold the democratic party blameless for excess spending. The current administration, being employed for a whopping two months, in my humble opinion, cannot be blamed for anything. We do not know if their policies have failed yet, so how can we blame or praise them? I think it is absolutely obtuse to attempt to declare barely enacted policies failures.

As for Question two: If you are a greedy company who cares more about profit margins than the health of the country you sell your products to, you will go to the Marianas Islands and employ 13 year olds and work them all day for pennies so that you maximize every dollar you can make and minimize the pennies you spend. You can cut their taxes to zero. I got mine types will always choose the cheapest way out. One day, conservatives might admit this sad part of human nature.

Cheers. Have a great weekend


The Wedge's picture
Submitted by The Wedge on Fri, 03/27/2009 - 10:33pm.

You have a great weekend as well.

I think one of bigger problems with partisan politics is that we argue from the extremities. The Marianas are a bad place to set up manufacturing because you transportation costs are so high. I will set up a blog to have a good discussion later this weekend.


Cyclist's picture
Submitted by Cyclist on Fri, 03/27/2009 - 9:48am.

I'm no economist either but I do know that money trees don't exist. Somewhere an adjustment has to be made on how and where money is spent. Of course we could pay more in taxes. (bad idea)

BTW, I'm at home nursing this gosh darn cold. Sad
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Caution - The Surgeon General has determined that constant blogging is an addiction that can cause a sedentary life style.


diva's picture
Submitted by diva on Fri, 03/27/2009 - 6:09pm.

Hot chocolate and GENEROUS amounts of RUM.

Trust me on this one Evil


Cyclist's picture
Submitted by Cyclist on Fri, 03/27/2009 - 9:32pm.

Irish cream.
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Caution - The Surgeon General has determined that constant blogging is an addiction that can cause a sedentary life style.


S. Lindsey's picture
Submitted by S. Lindsey on Wed, 03/25/2009 - 4:14pm.

YES.. but only if they can verify it from the Pelosi, moveon or salon website.. If it is there then of course it is fact.. The argument is settled..

I will not lower my standards.. So UP YOURS.. Evil

GUN CONTROL Link


sniffles5's picture
Submitted by sniffles5 on Wed, 03/25/2009 - 1:30am.

The Shadow adjusted his tinfoil hat and claimed: "Update, when Obama was asked about China’s proposal at the Press Conference, he skirted the question and didn’t answer it."

Press conference transcript:
QUESTION: Is there a need for a global currency?

PRESIDENT OBAMA: I don't believe that there's a need for a global currency.

And Darth and Shadow wonder why people don't take them seriously around here....


Submitted by The Shadow on Wed, 03/25/2009 - 12:04pm.

I repeat Obama did not answer the question about China’s concern about the US over-spending at last night’s Press Conference. After he finished rambling someone apparently in an off-mike statement re-asked the question by saying, global currency? Obama said: I don’t believe we need a global currency. That was not the answer to the original question. Off-mike means that the National TV audience did not hear his answer. I know slow learners like Sniffles has difficulty in understanding what people say. That’s why I say my blogs are for intelligent people only. Monetary policy is a too difficult concept for Sniffles. Don’t show your ignorance with silly one liners. You are embarrassing yourself and don’t know it.

diva's picture
Submitted by diva on Thu, 03/26/2009 - 3:06am.

the egg from your face? Come on. If you are going to criticize someone's intelligence in a post, you might find a liberal to proof read that post first.

"I know slow learners like Sniffles has difficulty in understanding what people say. That’s why I say my blogs are for intelligent people only."

A liberal, like, such as, U.S. Americans, would have told you that slow learners "HAVE" difficulty in understanding what people say.

Now, if you had been a fast learner, you would have picked up the art of verb conjugation around the second grade, but we have grown use to the tinfoil hat crowd. And you have helped in our acclimation.


Submitted by The Shadow on Thu, 03/26/2009 - 6:28pm.

The issues were China and off-mike statements. If this had been a test question, my secretary would have gotten -1 for grammar giving her a 99 A+. You Diva/Sniff would have received an F for not discussing the question.

JeffC's picture
Submitted by JeffC on Thu, 03/26/2009 - 7:16pm.

Has anybody seen the Republican budget unveiled today???

19 pages with no numbers:

A GOP budget with no hard numbers

What a farce! How incredibly stupid do they think we are?


Submitted by Davids mom on Fri, 03/27/2009 - 1:47pm.

No one wants to discuss the Republican Budget - without numbers. I was hoping that maybe they had come up with a strategy for starting up our economy and lowering our deficit within the year!!

S. Lindsey's picture
Submitted by S. Lindsey on Fri, 03/27/2009 - 7:54pm.

You guys have been ignoring your Deficits for years.. Lets talk about a real problem the $9.3 TRILLION dollars that we are saddling future generations with.. and have you ever seen a Goverment program that came in under the projected number... NO!!! You can bet it will be more then this..

I will not lower my standards.. So UP YOURS.. Evil

GUN CONTROL Link


S. Lindsey's picture
Submitted by S. Lindsey on Thu, 03/26/2009 - 8:09pm.

to overlook Obamas $2.3+ TRILLION dollar under estimate according to the CBO and you guys want to talk about the Republicans "soft" numbers.. Yep that's how stupid we think you are...
WASHINGTON - President Obama's budget would produce $9.3 trillion in deficits over the next decade, more than four times the amount for Republican George W. Bush's presidency, congressional auditors said yesterday.
OBAMAS MATH

I will not lower my standards.. So UP YOURS.. Evil

GUN CONTROL Link


S. Lindsey's picture
Submitted by S. Lindsey on Fri, 03/27/2009 - 7:47pm.

WASHINGTON - President Obama's budget would produce $9.3 trillion in deficits over the next decade, more than four times the amount for Republican George W. Bush's presidency, congressional auditors said yesterday.

Did you even read the story???

CBO Report Story

I will not lower my standards.. So UP YOURS.. Evil

GUN CONTROL Link


JeffC's picture
Submitted by JeffC on Thu, 03/26/2009 - 10:05pm.

Bush increased the deficit $5 trillion in eight years. CBO is projecting $9.3 over 10 years from Obama. That's less than double Bush's and not four times.

And I don't like it any more than you. I didn't like it when Bush was doing it and I don't like it now and I ain't gonna like it later.

This is a family blog so I'll leave it at that.


sniffles5's picture
Submitted by sniffles5 on Wed, 03/25/2009 - 1:44pm.

That's okay, Shadow, we expect you libertarians to lie.

Your tinfoil hat twittery aside, nothing is going to replace the Dollar as the world's reserve currency anytime in the near- or even intermediate- future. What the United States creditors can (and probably will) do is impose some sort of external controls on our own Federal spending.

There's an excellent "warts and all" analysis of China's proposal in today's Barrons LINK. It doesn't frame China's proposal in doom-n-gloom terms, so I doubt you'll find it on any of your usual libertarian websites.


S. Lindsey's picture
Submitted by S. Lindsey on Wed, 03/25/2009 - 4:21pm.

This is a quote from YOUR link..
You said: "It doesn't frame China's proposal in doom-n-gloom terms"
Barons said:
"More recently, Chinese officials have voiced concern about their massive holdings of U.S. Treasuries and dollar assets in general. A couple of weeks ago, Premier Wen Jiabao expressed concern about the safety of U.S. Treasury securities. Last month, a Chinese official put it bluntly: "We hate you guys. Once you start issuing $1 trillion-$2 trillion, we know the dollar is going to depreciate." But given the lack of viable alternatives, they're stuck buying Treasuries, he said."
Yep no "Gloom or Doom" here
Even when you try to state facts you can not help but spin it.. Stick to Nancy Pelosi's website.. Real sites are too tough for you to quote from...

I will not lower my standards.. So UP YOURS.. Evil

GUN CONTROL Link


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