China's Yuan 'Set to Usurp US Dollar' as World's Reserve Currency

[peaceandlove]

China's Yuan 'Set to Usurp US Dollar' as World's Reserve Currency

The Chinese Yuan is preparing to overtake the US dollar as the world's reserve currency, economist Nouriel Roubini has warned.

By James Quinn, Wall Street Correspondent
Last Updated: 1:50PM BST 15 May 2009

Professor Roubini, of New York University's Stern business school, believes that while such a major change is some way off, the Chinese government is laying the ground for the yuan's ascendance.

Known as "Dr Doom" for his negative stance, Prof Roubini argues that China is better placed than the US to provide a reserve currency for the 21st century because it has a large current account surplus, focused government and few of the economic worries the US faces.

Article continues: http://www.campaignforliberty.com/wire.php?view=5121

[Steve_A]

Hi peaceandlove,

I can't say that I agree with Roubini. I don't think the Yuan will take over as a the reserve currency. I would have chosen the Japanese Yen or the Euro, in spite of the economic crisis.

It has also been suggested a new currency (NWO currency) based on a basket of different currencies to control the value, but I don't know who will be left in charge of this currency as the US and Europe seems to have screwed up. Would you allow a bankrupt bank be in charge of your money?

Another alternative is to have a virtual currency like we had in Europe with the ECU (European Currency Unit) which was used to keep all the European currencies in check. I imagine that any new world currency would be called something like a GCU (no suprises - Global Currency Unit).

Only time will tell.

Best regards,

Steve

Originally Posted by peaceandlove

China's Yuan 'Set to Usurp US Dollar' as World's Reserve Currency

The Chinese Yuan is preparing to overtake the US dollar as the world's reserve currency, economist Nouriel Roubini has warned.

By James Quinn, Wall Street Correspondent
Last Updated: 1:50PM BST 15 May 2009

Professor Roubini, of New York University's Stern business school, believes that while such a major change is some way off, the Chinese government is laying the ground for the yuan's ascendance.

Known as "Dr Doom" for his negative stance, Prof Roubini argues that China is better placed than the US to provide a reserve currency for the 21st century because it has a large current account surplus, focused government and few of the economic worries the US faces.

Article continues: http://www.campaignforliberty.com/wire.php?view=5121

[peaceandlove]

Originally Posted by Steve_A

Hi peaceandlove,

I can't say that I agree with Roubini. I don't think the Yuan will take over as a the reserve currency. I would have chosen the Japanese Yen or the Euro, in spite of the economic crisis.

Hi Steve,

A person might tend to believe that the biggest holder of US debt would hold the power to issue the World's Reserve currency.

He He Peculiarly, the biggest holder of US government debt is the United States itself. The Federal Reserve system of banks and other US intragovernmental holdings account for a stunning $4.806 trillion in US Treasury debt. And with recent announcments from the Fed, potentially another $1 trillion may be added to its balance sheet... About a decade ago, the total government holdings were "only" $2.5 trillion.

SEE SLIDE SHOW for other holders of US debt ->: http://ow.ly/74fI Scroll to bottom of article for link.

Source:
Another "Dr. Doom", Marc Farber...

Dr. Doom: Capitalism Could Fail Like Communism

By: CNBC.com | 15 May 2009

"The worse the statistics will be, the more money will be printed. Believe me, globally all the central banks will print money like there's no tomorrow."

Article: http://www.campaignforliberty.com/wire.php?view=5118