Russia/China Call for Talks on US Dollar

[SlowDownFast]

China backs talks on dollar as reserve -Russian source

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.

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

[CoffeeCat]

1. They want to replace the dollar...

...as the world's primary reserve currency?

What would that do to the dollar?

This is quite the coup. China, India, Brazil and Russia did this ahead of the G20 meeting. Sounds like they're
circling the wagons and galvanizing support before the G20 meeting.

I don't know what this means, but it's unprecedented in recent history.

Me want my blanky.

[femrap]

2. I believe China has planned to do this

for a long time. The Empire is collapsing.

Instead of a blanky....I suggest putting in geothermal!!

[Po_d Mainiac]

3. It means that we (USA) would officially join the Third World

The flood of dollars onto the world market would deflate the value of our currency to the extent that Treasury would have to either officially devalue the greenback, or start printing bills with more zero's. Forget about $400 Bbl oil, that price tag wouldn't even amount to a speed bump. Hard currencies (gold, silver and even copper) would hit outrageous highs.

It would mean that our financial system has managed to inflict more harm than any terrorist organization could dream of doing. Ferget about having to finish the barrier with Mexico. They (Mexico) would do it. American peasants would be trying to flee southward.

One of the few means that the US would have of raising exchangeable currency, would be to export all of our commodities. Including OIL!

Look at what happened today with gold and oil prices, just on the rumor.

[GliderGuider]

4. May you live in interesting times.

It's more than a bit ironic that the curse is Chinese. They may be about to make Western lives very interesting indeed.

[Po_d Mainiac]

6. Hey GG.....I'll trade u greenbacks for Loonies n/t

[Doctor Cynic]

14. I will. A call option to December 2009 at a rate of $1.50.

Deal or no deal?

[Po_d Mainiac]

16. by December? Are u a wacky optimist?

By then, on this side of the border, I'll be swapping Maple Syrup and gun powder for Loonies. Then I can get a half liter of diesel at the local Irving Station for the backhoe. The bomb shelter is too shallow enough. <grin>

[CoffeeCat]

7. I don't call...

...living in a page out of Kormac McCarthy's "The Road"----interesting.

If anyone needs me, I'll be hiding under my bed.

[Doctor Cynic]

13. Unfortunately that is false, and there is no such saying in real life.

Would have been appropriate if it were, though.

[phantom power]

5. Oh yeah, baby...

Making their move.

[my2sense]

8. This is getting REALLY scary

This coupled with all the gun nuts stocking up on ammo and guns..........just dayum.......

[FlyingTiger]

9. I know. I'm trying to get more of my money into commodities and the Euro.

Europe's in the shitter too, but if the world suddenly starts pulling out of the dollar, a lot of them will go to the Euro.

I only think that'll help me so much, though....

[SlowDownFast]

11. What's so nutty 'bout stocking guns and ammo these days?

I've been stocking up on all KINDS of things - guns and ammo included.

Don't delude yourself. Empires fall and societies collapse. Wars start.

Oh, yeah - President Obama and all that...

[whosinpower]

10. Honestly now - can you blame them?

The rot emanating from Wall Street has caused a global crisis unprecedented - and one has to wonder how there could be any confidence in the US greenback at all.

How much longer can the FED constrain the value of gold.....it is a dicey dicey situation for everyone, not just the Americans, but everyone globally.

I think that Obama being in power is a good thing, but, look.....the absolute core issue is trust and confidence. That is the underpinning of everything, and it is gone, evaporated, wasted, taken advantage of, over obscene, gross mismanagement on an EPIC scale, from the deregulation, from the mortgage lenders, from the securities rating agencies, from the FED, from Treasury. This isn't just about AIG. It is bigger, more hideous than that. It is a multi trillion dollar debt, a lack of accountability - bonuses getting taxed - big deal. How about criminal investigations? How about some serious crackdown regulations? Where are those? How about some crackdown bankruptcies for firms doing shady business. How about a serious crackdown on short selling, market manipulation, declaring credit derivitive swaps illegal, and null and void?

They made an epic mistake by trying to get the old system functioning again first. The old system cracked for a reason. A better way would of been to rework a new system, and let the banksters, the hedge funds, AIG, collapse under the weight of their corrupt, greedy mismanagement. Why loan money to the banks, in hopes that they will do the right thing? Would of been more prudent to start up a national government banking system that loaned money directly to mainstreet - and let wall street work out their own problems. I know this sounds like Hari kari, but IF the world moves on to a new reserve currency, you have been outmanovered, and it is game over for America. Game over. I know that Wall Street makes up about 40% of your GDP - but of that 40%, how much is illusion? This all goes back to confidence and trust.

There is only one other alternative to see who wins this fight. War. And talks of this nature might lead us all down that path.

[SlowDownFast]

12. Not one bit. We deserve it. n/t

[upi402]

15. Some deserve it... and worse.

We, here, deserve a break. But it's the rich guys building forts out of their homes. I fought against just what's happening for decades, from marching to money donations. Nothing dented the propaganda media's power fool the people.

So here we are. Let history report the news after the cable is unplugged and the pundits finally STFU.

[TheWatcher]

17. OK, WHERE are all the Apologists that were cheering and smiling and backslapping each other on

"Monetization Day?"

Well, come on, tell how this is all so good and that mortage rates are going lower, and that will help the Housing Market, and how we can all giggle with glee as the stock market Rockets back up, Debt is God, "Shut Up All you naysayers and DU Downers, I just want to feel good and you're blowing my high", "THANK GOD IT PASSED!!!!!11111", "All You Currency Conspiracy theorists Sound like Hoover"

In the IMMORTAL words of Ted Knight.....

Wellllll......WE'RE WAITING......