China positioning its currency for a run at world supremacy by 2020?

April 5, 2009 by · Leave a Comment
Filed under: Currency News 

In my opinion I do not see the dollar as the “only” dominant currency by 2020 either, with China, India and Brazil working hard to provide employment and raise the standards of their people, to accomplish this, they will need to provide stability and that will make those countries more attractive to invest in and that is the biggest reason people invest in the dollar.  If we were more responsible with how we handled our currency, we would not hear these calls as loud as we do in these current times.  It will be interesting to see how this plays out.

News (LA Times):

Reporting from Shanghai — Could the world’s currency of choice have the face of Mao Tse-tung on it, not George Washington?   Quixotic or not, the Chinese are preparing for that day.

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U.S. Losing Finance Superpower Status according German finance minister

September 25, 2008 by · Leave a Comment
Filed under: Economic News 

I would agree, you don’t keep your world currency reserve status by bailing out bad financial institutions, runs huge budget deficits, run expensive wars, run a economy that 70% of GDP is based on consumption and to top it off our biggest single export is U.S. dollars. We need to enact the “No Congressmen Left Behind” program to give them a “Money 101” course so we don’t have this panic on subjects that they are not familiar with. You don’t need P.H.D to understand the basics, you do however need one to do the day to day functions of a economy of any national size. We will continue to see this type of talk until it becomes a reality and at that point it is almost impossible to get that back without major monetary reform. There is a great book called “The Theory of Foreign Exchange” and they have a section about financial crisis and what makes one and what steps have to be taken to reform the currency and I believe it applies more than ever on our situation.

News Release:

German Finance Minister Peer Steinbrueck said the U.S. will lose its position as the world’s undisputed financial “superpower” and called for a ban on speculative short-selling to help restore the global economy.

Steinbrueck, in a speech on the financial-market crisis to lawmakers in Berlin today, set out an eight-point plan urging greater regulation and larger capital reserves for banks. He championed the German banking system over its U.S. counterpart, dismissing the `Anglo-Saxon” model as having “an exaggerated fixation on returns.”

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