Is this the beginning of the end of the dominance of the US dollar as the world's preferred currency? The global economic crisis and the erosion in the value of the dollar has led China of all countries to call for a new "international reserve currency":
[People's Bank of China] Gov. Zhou Xiaochuan's essay did not mention the dollar by name but said the crisis showed the dangers of relying on one nation's currency for international payments. In an unusual step, the essay was published in both Chinese and English, making clear it was meant for an international audience.
"The crisis called again for creative reform of the existing international monetary system towards an international reserve currency," Zhou wrote.
A reserve currency is the unit in which a government holds its reserves. But Zhou said the proposed new currency also should be used for trade, investment, pricing commodities and corporate bookkeeping.
Beijing has long been uneasy about relying on the dollar for the bulk of its trade and to store foreign reserves. Premier Wen Jiabao publicly appealed to Washington this month to avoid any steps in response to the crisis that might erode the value of the dollar and Beijing's estimated $1 trillion holdings in treasuries and other U.S. government debt.
http://www.npr.org/templates/story/story.php?storyId=102283007 (Photo: World Economic Forum [Flickr])
It's a shame that such a country still exists in the year 2009...
I'm guessing the same place that Pakistan got all their money and weapons.
The rich (doing what rich people have done for centuries)are gutting America for their own bottom line.
US surely would lose its current privilege of printing money at will, but China needs to let go of its currency as well.
Who actually has been lending the US all thismoney that the treasury have been magic-ing up?
Who owns that national debt?
http://www.guardian.co.uk/news/datablog/2009/mar/13/useconomy-china
take a guess
The big American Ponzi scheme is coming to an end.
What would happen if the U.S Dollar wasn't tied to the value of barrels of oil?
I have heard that if China calls in their debt, that would be it for the Americans.
Economic crisis, well, perhaps this is just the begining of the end of an empire. My advise, start practicing your Mandarin/Cantonese
Between the US Dollars held by foreign central banks now being very likely to re-enter circulation, and all the money Bernanke / Geithner / Obushma are throwing from their helicopters... we will have hyper-inflation by next winter. The US Dollar will be worth 1/3 or less what it is today. People might scoff at this by I predicted this mess back when the Fed discontinued the M3. We are so totally fucked. Stock up on basic essentials and know who you can rely on.
The beginning? For months now the Euro is becomming more and more popular as the us-dollar is weak.
@andib: america still has the death penalty. so who are you to judge?
All I can say is: buy bullets.
Hen Hao
As for China, apparently their motto is: You can't beat them, but you can buy them outright.
@Thomas:
I'm not American... who said so?