China backs talks on dollar as reserve -Russian source

[SlowDownFast]

Source: Reuters

Thu Mar 19, 2009 11:24am EDT

By Gleb Bryanski

MOSCOW, March 19 (Reuters) - China and other emerging nations back Russia's call for a discussion on how to replace the dollar as the world's primary reserve currency, a senior Russian government source said on Thursday. Russia has proposed the creation of a new reserve currency, to be issued by international financial institutions, among other measures in the text of its proposals to the April G20 summit published last Monday.

Calls for a rethink of the dollar's status as world's sole benchmark currency come amid concerns about its long-term value as the U.S. Federal Reserve moved to pump more than a trillion dollars of new cash into the ailing economy late Wednesday.

Russia met representatives of China, India and Brazil ahead of the G20 finance ministers meeting last week, as the big emerging powers seek to up their influence on decisionmaking globally. Their first ever joint communique did not mention a new currency but the source said the issue was discussed.

"They (China) did not formally put forward their position for the G20 summit but unofficially they had distributed their paper regarding the same ideas (the need for the new currency)," the source told Reuters, speaking on condition of anonymity.



Read more: http://www.reuters.com/article/usDollarRpt/idUSLJ93633020090319

[peacebird]

1. that's not good......

[SlowDownFast]

2. Next Up: Massive Pull-Out of US Treasuries? n/t

[Javaman]

3. naaa, both russia and china are invested in t-bonds. especially china.

so if they pull out of the t-bond, just what would they replace it with?

the ruble has been devalued 20 times in the last 2 1/2 years and china's economy is also in deep shit.

Perhaps they are thinking about sea shells?

Unless they can back up this rhetoric with real talk of substance this is just a exercise in spewing hot air.

whether they like it or not, even our shitty economy is still much bigger then theirs.

tearing ours down, would effectively cause a massive collapse of the worlds economy. and china is a fine one to talk since we are they benefactor of their cheaply made crap products and they are our codependent.

Russia is so completely crooked and run by the russian mafia, that if the russians pulled out of the US dollar the mafia would openly take over the government.

this is nothing but bullshit and bluster by to frustrated ex-communist countries out to try in piss in the worlds soup in hopes of being the wearer of the big pants.

They have a very long way to go.

[wackywaggin]

4. Good Post!!

Agree completely!

[smiley_glad_hands]

5. Great post. eom

[knitter4democracy]

7. They're probably thinking euros.

It's doing better.

[Javaman]

10. For now. If we hit another major spike with oil, it will tank just like ours

and the rest of the worlds currency.

[knitter4democracy]

11. Very true. That's what globalism gets you.

If we're all integrated in our currencies and economies so we can't go to war against each other easily, it also means that there's a domino effect when one economy fails.

[Deja Q]

13. Woah, Russia is demanding input and their money has been devalued, far more?

Like the "professor" who thinks the US will be split into 5 units, the Alaskan one going back to Russia of course (can't imagine why), I don't think Russia is going to get very far on this claim.

Definitely right, re: China. Theirs has NOT been a way on how to build a successful empire. The US has its own problems, no argument, but we never so consistently made products that broke apart easily... or killed. They are also communist; state owned, so therefore the government is as responsible as the companies US or "multinational" companies bought services from.

[sarcasmo]

6. Shit meet fan.

[unkachuck]

8. repug legacy....

....why would the world wish to continue to buy and sell oil for their economic recovery in dollars?....why would the people of the world have an interest in continuing to support our global war machine that threatens their lives, property and world stability?....why would the people of the world feel they need to be put through economic hell so we could continue our financial shell games?

....admittedly, I know nothing about world finance but it seems to me we've completely betrayed the worlds' trust over the last ten years and the world must find away around us even if it means short-term pain....

"Russia met representatives of China, India and Brazil ahead of the G20 finance ministers meeting last week..."....collectively they could lead a major part of the world in a new direction....

[Pavulon]

9. I liked the D mark.

It looked cool and was a great currency. Still have a few. These assholes have nothing. China is third world body shop and russia is currently a failing petro state.

Waiting for their plan.

Maybe china can look at their pegged currency. If allowed to float it would be in the shitter. Considering I can get shoes an shirts made for less in Vietnam. That's irony.

[Deja Q]

12. Well, let the yuan take over It'll be so filled with lead it'll sink right to the bottom too.

:shrug: