China Blasts U.S. Debt Problems, Urges New Global Reserve Currency

[Galaxy]

Because America is our biggest customer, our biggest debtor, and the current bedrock of the international financial order.

We have everything to lose, and nothing to gain, if the US economy goes downhill.

And US government bonds are still one of the safest and most liquid assets in the world.

That is the point.

Business is about Profit/Loss i.e. High Risk-High Gain.

US is putting money in Taiwan. The colour of the money is Green. Ironically, China helping US to help it's enemy and China can't do anything. It can neither complain nor have any other options in the era of $. I don't know, But actually China didn't had any other options. May be some other options ?? It's not about China, Whole world. But Since China is biggest exporter to US, So maximum effect.

 

[Galaxy]

There must be some other currency rather than Dollar. Whole Europe, US, Japan is sinking in Debt and many developing countries like China can't do anything. There should be some other alternative.

 

[Chinese-Dragon]

That is the point.

Business is about Profit/Loss i.e. High Risk-High Gain.

US is putting money in Taiwan. The colour of the money is Green. Ironically, China helping US to help it's enemy and China can't do anything. It can neither complain nor have any other options in the era of $. I don't know, But actually China didn't had any other options. May be some other options ??

Let's not derail this thread, Taiwan is not our "enemy". They are fellow Han Chinese who fled to Taiwan after they lost the Civil war. You can open another thread if you want to discuss it.

 

[Chinese-Dragon]

I don't know, But actually China didn't had any other options. May be some other options ??

There are three main options: The USA, Europe and Japan.

Out of the above, US government bonds are still the safest.

 

[Galaxy]

There are three main options. The USA, Europe and Japan.

Out of the above, US government bonds are still the safest.

Yes, I agree completely. China didn't had any other option. But I don't think Situation in Europe and US is going to improve even in next 10 years. There must be some alternative. I don't know even if it is possible. 50% of the world is dependent on US due to various reasons and US can't do anything she wants to do. US is hurting many countries and other countries can't do anything.

 

[Chinese-Dragon]

The Euro was once considered a potential alternative, but now the Eurozone is going through crisis after crisis.

The Eurozone may even break up, with countries like Greece being forced to leave.

And Japan's economy, has been stagnant for over two decades. They also have a debt-to-GDP ratio of over 200% (highest in the developed world).

So... the American Dollar still reigns supreme.

 

[VCheng]

Any takers for the conspiracy theory that the recent moves by the US in tanking the world economy may be designed to destroy the Euro?

 

[muse]

Why is that important at this stage?

 

[IndoCarib]

Any takers for the conspiracy theory that the recent moves by the US in tanking the world economy may be designed to destroy the Euro?

If that is true, Yuan better be ready !

 

[Chinese-Dragon]

If that is true, Yuan better be ready !

The Yuan is not freely convertible, so it will not be able to fulfill the function of a reserve currency anyway.

Not even close.

Wait 10-20 years, and then maybe we can talk about it.

 

[below_freezing]

There are three main options: The USA, Europe and Japan.

Out of the above, US government bonds are still the safest.

No, another option is buying USD denominated land in Africa.
Or buying USD denominated oil and storing them in a strategic reserve.
Or buying USD denominated gold.

Its a combination of incompetence, the Taiwanese export lobby's political influence, corruption, lack of direction and foresight, and US spies in our government (remember, Deng Xiaoping's grandson is a pureblooded American with no relationship to China whatsoever) that led to this.

However fear not, even if all our money was in USDs, and the USD still went down, only China's "savings" will be wiped out but the US's entire economy, including its physical economy, would be decapitated.

The current situation is like I am hanging by a thread off a cliff, and my enemy is holding onto my pants. I can never climb out of the cliff as long as this enemy is dragging me down by the pants. But my pants have a wallet with 1 million dollars in them and in addition its name brand Armani pants, so I'm uneasy about losing them. The enemy threatens to stab me with a knife if I let go of the pants. It may hurt, but the correct thing to do is, loosen my belt, take off the pants, let my enemy fall into the abyss, accept the losses and climb out of the cliff.

 

[IndoCarib]

The Yuan is not freely convertible, so it will not be able to fulfill the function of a reserve currency anyway.

Not even close.

Wait 10-20 years, and then maybe we can talk about it.

I meant if Yuan tries to replace dollar monopoly, it better be ready for any US counter move . I was replying to VCheng's conspiracy theory that US is trying to destroy Euro. It may do that to Yuan when Yuan actually becomes a reserve currency.

 

[ChineseTiger1986]

No, another option is buying USD denominated land in Africa.
Or buying USD denominated oil and storing them in a strategic reserve.
Or buying USD denominated gold.

Its a combination of incompetence, the Taiwanese export lobby's political influence, corruption, lack of direction and foresight, and US spies in our government (remember, Deng Xiaoping's grandson is a pureblooded American with no relationship to China whatsoever) that led to this.

However fear not, even if all our money was in USDs, and the USD still went down, only China's "savings" will be wiped out but the US's entire economy, including its physical economy, would be decapitated.

The current situation is like I am hanging by a thread off a cliff, and my enemy is holding onto my pants. I can never climb out of the cliff as long as this enemy is dragging me down by the pants. But my pants have a wallet with 1 million dollars in them and in addition its name brand Armani pants, so I'm uneasy about losing them. The enemy threatens to stab me with a knife if I let go of the pants. It may hurt, but the correct thing to do is, loosen my belt, take off the pants, let my enemy fall into the abyss, accept the losses and climb out of the cliff.

Well, we need more ordinary citizens from Tuanpai to overthrow those red aristocrats.

That's why under the order from Hu Jintao, the next successor of Xi Jinping will be Hu Chunhua, a another member from Tuanpai.

 

[aakash_2410]

Chinese want new global reserve currency?

We all know Euro is not strong enough neither is your Yuan.

But would they be happy to make Japanese Yen global reserve currency? No right. So this topic ends there and Dollar is still the safest.

 

[Chinese-Dragon]

Chinese want new global reserve currency?

We all know Euro is not strong enough neither is your Yuan.

But would they be happy to make Japanese Yen global reserve currency? No right. So this topic ends there and Dollar is still the safest.

IMF special drawing rights.

Based on a basket of currencies.