China calls for global currency

[Notmuchlonger]

There are a lot of insightful folks here. Im not sure what I make of this. Any concerns about this message. My opinion is some grandstanding by the Chinese. However, Id love to hear a different viewpoint.

China calls for new global currency

 

[NW-Bound]

Fine.

The US would not mind, as long as all the printing presses are on our soil.

 

[Notmuchlonger]

Fine.

The US would not mind, as long as all the printing presses are on our soil.

Yeah. I dont know what to make of it. Im not sure what they gain by this kind of statement. Wondering if something obvious or not so obvious I might be missing.

 

[NW-Bound]

They (the Chinese) probably think they will get the printing presses. However, we have more experience in that work than any other nations on earth. Trillions? No problem.

 

[crazy connie]

That is a great idea! So very easy to administer. The perfect time to do it will be once there is a world standard wage schedule and world wide health care not dependant on charity and adequate food and water and shelter for all people.
Oh yeah, throw in a little free speech too!

 

[Gumby]

..

 

[youbet]

The Chinese are just looking for a way to store value that is not as subject to political winds as the dollar. As net savers, they have this problem. As net borrowers, we don't.

 

[samclem]

As holders of gobs of US debt (especially when expressed in "portion of GDP per capita"), the Chinese have a lot to lose if/when US inflation hits. They probably know that this universal reserve currency they've proposed has no realistic chance of gaining traction now, but they want to put the idea out there as a threat-in-being to help keep the US printing presses in check. And, once the US currency does begin to lose value, the other creditor nations might just think this isn't such a bad idea. It would hurt the US a lot.

 

[chinaco]

They have a global currency... It is call the U$D!

 

[ziggy29]

China needs to keep posturing, but in reality I think they know that if they bail out on Treasuries and the dollar, our economy is screwed -- and we'd take theirs down with them given their dependency on exports. So in reality they'd also be going down with the ship.

 

[MasterBlaster]

The Chinese are Hypocrits

From the country that took currency manipulation to new levels we are criticized for (possible) inflationary actions that might decrease the value of our currency.

Just maybe that's exactly what we need for long term viability, a lower value US dollar. Sure it makes buying foreign stuff more pricey but it will keep the job steamroller going here at home. That's the Chinese playbook.

Too bad that their $trillion isn't going to be worth as much.