China calls for new reserve currency

"China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.

ft.com/cms/s/0/7851925a-17a2-11de-8c9d-0000779fd2ac.html

Maybe it is time to fall off the monetary grid. Globalism (Global Capitalism and Socialism) as economic models are failures.

This is rather interesting, considering China owns so much of America’s debt; I would guess that they would only want the value of the dollar to increase, thereby cheapening the Yuan and increasing the value of PRC’s holdings…then again I’m not an economist.

This is also an example of history repeating itself as a call for an international and universally usable currency was BIG news pre-War Western society. At that time, Great Britain and most of the rest of the world was on a gold standard (a few holdouts here and there) and economists dreamed of getting rid of national paper currency altogether and instead relying on notes based only on a certain quantity of gold to be used everywhere, and for everything.

Which begs the question, if not the almighty Euro, the now humble dollar, or even the resurgent Yen, what besides gold?

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