Russia and China call for replacing the Dollar

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Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
Russia and China call for replacing the Dollar

 

 I came across this article on another forum.

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

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.

 

kmarinas86's picture
kmarinas86
Status: Silver Member (Offline)
Joined: Dec 29 2008
Posts: 164
Re: Russia and China call for replacing the Dollar

A solution would be to have reserve account where the value of your money (in national currency) is saved as a percentage of the world's money supply. If a national currency falls in value due to inflation, then anyone who had such currency converted to a percentage of the world's money supply, they could maintain their percent share of the world's currency. This would reduce the effects that inflation has on people's savings.

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: Russia and China call for replacing the Dollar

US debt default to make dollar collapse 

The prospect of the United States defaulting on its debt is not just likely. Its inevitable, and imminent.

The
regulatory black holes into which sanity and reason disappear on a
daily basis are soon to collapse under the mass of their sheer size.

There are a lot of reasons to support that theory.
To Wall Street economists, such an event is heresy and therefore
unthinkable. Yet Wall Street is the very La-la-land that bred the idea
of a perpetually indebted nation in the first place.

Number one among the indicators favoring this scenario is what is happening in the U.S. Treasuries auction market.

Last
Thursday, an $30 billion auction in five-year notes failed to stir the
interest of traditional primary dealers. The auction itself was saved
by an anonymous “indirect” bid.

The U.S. Federal Reserve suggested last week that it
was going to step up its treasury-buying activity, and the mainstream
media interprets this as a form of market support. What it actually is
evidence of growing anxiety and desperation on the part of the Fed as
the realization dawns that demand for treasuries is progressively
evaporating.

The increased demand for gold as
an investment witnessed throughout the last two weeks that has pushed
gold to a 4 month high is further evidence that investors across the
board are gravitating more towards gold and away from U.S. debt.

I think the spin-controlled version of events will make the collapse of
the derivatives market the red herring that facilitates the
aw-shucks-we-have-no-choice shoe-gazing moment possible, and that’s
exactly the parachute the government needs to retain a veneer of
credibility - at least in its own delusional mirror.

The MSM in the US is covering up the news to the detriment of all Americans.  The dollar is about to take a huge hit, people need to prepare.  

Larry

nickbert's picture
nickbert
Status: Diamond Member (Offline)
Joined: Jan 14 2009
Posts: 1208
Re: Russia and China call for replacing the Dollar
DrKrbyLuv wrote:

The MSM in the US is covering up the news to the detriment of all Americans.  The dollar is about to take a huge hit, people need to prepare.

Yes, it is extremely irritating to see how the Fed's move is being portrayed by the MSM, or at least the several articles I've seen.  I have yet to see one MSM article that addresses any of the downsides to this action (such as risks of inflation or pissing off creditor nations)... and most are spinning it as if it's just the thing the country needs.  Even the markets soared on that news yesterday, so a lot of people are apparently buying into it.  Did 93% of us in the USA just happen to take their crazy pill this week?

- Nickbert

slabinja's picture
slabinja
Status: Bronze Member (Offline)
Joined: May 27 2008
Posts: 46
Re: Russia and China call for replacing the Dollar

So what should one do with dollars at this point?

Gold and precious metals are good safe havens obviously, but what else is out there?  Is investing in other currencies risky at this point?

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