Chinese President: U.S. $ Based Market Is A Thing Of The Past

MintJulep · #1 (**permalink**) 01-17-2011, 06:49 AM

Definitely not good news.

Quote:

BEIJING—Chinese President Hu Jintao emphasized the need for cooperation with the U.S. in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a "product of the past" and highlighted moves to turn the yuan into a global currency.

Read more: Hu: Dollar-Based System 'Product of the Past' - FoxNews.com

lizzie · #2 (**permalink**) 01-17-2011, 08:47 PM

We will eventually rue the day that we started borrowing from the Chinese to finance our government obligations. As much as I personally like Chinese culture and all the Chinese people I meet, they have a hard cold steel edge.

alan · #3 (**permalink**) 01-17-2011, 09:02 PM

Quote:

Originally Posted by MintJulep

Definitely not good news.

Read more: Hu: Dollar-Based System 'Product of the Past' - FoxNews.com

Even worse news from Oct 2010
Russian Central Bank supports ruble-yuan direct currency exchange

Quote:

Russian Central Bank is willing to cooperate with China to push forward the realization of direct currency exchange between ruble and Chinese yuan, Victor Melnikov, deputy head of the central bank, told Chinese ambassador Li Hui on Friday.

That means the Russians are on board with establishing the yuan as a potential global currency.

Revere · #4 (**permalink**) 01-17-2011, 10:34 PM

The Chinese only hold $1T of the $14T in US Debt.

MintJulep · #5 (**permalink**) 01-17-2011, 10:57 PM

So what does everyone think is going to happen? Are we going to wake up one day and the dollar is worthless? I don't really understand all of this, but I do know it is bad news.

lizzie · #6 (**permalink**) 01-17-2011, 11:02 PM

I would be surprised if it happened that suddenly, but I expect a slow economic decline and increasing debt that can't be paid at some future date. At that time, I expect some of what we are seeing in Europe currently with social unrest and rioting.

MintJulep · #7 (**permalink**) 01-17-2011, 11:14 PM

Thanks, lizzie. What do you think people would riot about here? I ask because we don't have as many people dependent on the govt as they do in Europe. Unless this could take 5-10 years and people become that dependent in the meantime, although I don't see how we can afford to give anyone any more handouts.

This worries me.

lizzie · #8 (**permalink**) 01-17-2011, 11:21 PM

Quote:

Originally Posted by MintJulep

Thanks, lizzie. What do you think people would riot about here? I ask because we don't have as many people dependent on the govt as they do in Europe. Unless this could take 5-10 years and people become that dependent in the meantime, although I don't see how we can afford to give anyone any more handouts.

This worries me.

Currently, almost half the population is getting a government subsidy or handout in one form or another. For many of them, it is their sole means of support. We currently have baby-boomers going on SS and MC at an average rate of 10000 per day, if what I heard a couple of weeks ago is correct. Money starts getting tight, energy and food prices are rising due to inflation, and we don't have a good economic outlook. Things are vastly different now socially as opposed to during the great depression, and people don't know how to meet their own basic needs in many cases. It wouldn't take as much of a change to cause unrest as it once did.

alan · #9 (**permalink**) 08-06-2011, 11:15 AM

Here we go, China tells U.S. "good old days" of borrowing are over - Yahoo! News
snips,

Quote:

"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," China's official Xinhua news agency said in a commentary.

Quote:

"China, the largest creditor of the world's sole superpower, has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets," it said.

It urged the United States to cut military and social welfare expenditure. Further credit downgrades would very likely undermine the world economic recovery and trigger new rounds of financial turmoil, it said.

"International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country," Xinhua said.

China is not bluffing, they are continuing to lay the groundwork to replace the US dollar as a global currency. They want the yuan to be that replacement.
If you think the US has an economic mess right now go back and look what happened to England when the US Dollar replaced the Pound Sterling.

Mikeyy · #10 (**permalink**) 08-06-2011, 03:54 PM

Forget that it is China. It could be anyone who has been loaning us money. We are like those who got home loans without proof they could pay them. All we show the world is stupid partisan bickering. I have been posting here for years that the world is kicking our asses while we fight about everything. Don't blame the bank for asking if you are up to paying your bills and getting your house in order. Jesus people we were warned this would happen. Gietner was trying to make it clear and all the right did was attack Gietner. Then they go "What?"

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

The Following 2 Users Say Thank You to MintJulep For This Useful Post:
lizzie, mlurp

The Following 3 Users Say Thank You to lizzie For This Useful Post:
Coyote, Spencer Collins, Tomfoolery

The Following 2 Users Say Thank You to lizzie For This Useful Post:
Coyote, MintJulep

The Following User Says Thank You to alan For This Useful Post:
MintJulep

The Following User Says Thank You to Mikeyy For This Useful Post:
sunwestdog