China Blasts Dollar Dominance

The U.S. has had the extreme blessing, since the end of WWII, of owning the printing press to the world's ONLY reserve currency.  Ever since the mid 1940's, if any other country wanted to buy ANYTHING on the international markets, they had to come up with U.S. dollars.

The talk of changing that system continues to grow louder and louder.

BEIJING (Reuters) – Dollar dominance is sowing the seeds of financial turmoil, and the solution is to promote new reserve currencies, a Chinese government economist said in a paper published on the eve of a G20 meeting about how to reform the global monetary system.

Although not an official policy statement, the paper by Xu Hongcai, a department deputy director at the China Center for International Economic Exchanges, offered a window onto the domestic pressures bearing on Beijing to move away from a dollar-centric global economy.

The China Center, a top government think tank, has represented the Chinese government in organizing a forum on Thursday in Nanjing that will bring together finance ministers, central bankers and academics from the Group of 20 wealthy and developing economies.

Xu's paper, "Reform of the international monetary system under the G20 framework," was published in Chinese on the center's website this week (www.cciee.org.cn).

"Nations around the world have no way of restricting dollar issuance by the Federal Reserve. The current international monetary system lacks both stability and fairness," Xu wrote.

See it here; http://news.yahoo.com/s/nm/us_china_g20_dollar


Did you catch that?  China is now saying that it's not fair or stable to allow the Federal Reserve to have the printing press for the world.

And how much money do we owe China?  How much longer will we be able to threaten them with military might around Taiwan when we both know that we are reliant on their loans to keep our aircraft carriers sailing?
Just imagine if the U.S. Congress had to figure their budget knowing they had to pay all their bills using Euros and we needed to have the hard currency in hand?  Today's congress couldn't even agree on a $6 billion budget cut...which is the equivalent of ONE DAYS EXPENDITURES!  What would happen to our nation if we had to come up with $1.5 trillion in cuts THIS YEAR because we didn't have the luxury of the Federal Reserve turning on the printing press to buy all of our needs with made-up money?

Please remember that the word "A-N-A-R-C-H-Y" is spelled using a "C" and an "H".