Professor Roubini, of New York University's Stern business school, believes that while such a major change is some way off, the Chinese government is laying the ground for the yuan's ascendance. Known as "Dr Doom" for his negative stance, Prof Roubini argues that China is better placed than the US to provide a reserve currency for the 21st century because it has a large current account surplus, focused government and few of the economic worries the US faces. In a column in the New York Times, Prof Roubini warns that with the proposal for a new international reserve currency via the International Monetary Fund, Beijing has already begun to take steps to usurp the greenback. China will soon want to see the yuan included in the International Monetary Fund's special drawing rights "basket", he warns, as well as seeing it "used as a means of payment in bilateral trade." Prof Roubini's warning followed the US government's latest economic data that showed producer prices in April experienced their biggest year-on-year drop since 1950, falling 3.7pc. The number of Americans claiming unemployment benefit for the first time rose by 32,000 to 637,000 in the week to May 9. The increase meant the total number of people claiming benefits stood at to 6.56m, a record high for the 15th consecutive week in a row. But neither the gloomy data, nor Prof Roubini's verdict on the greenback's future, held back the markets. The Dow Jones traded up 59.89 at 8344.78 in lunchtime trading.China's yuan 'set to usurp US dollar' as world's reserve currency
The Chinese yuan is preparing to overtake the US dollar as the world's reserve currency, economist Nouriel Roubini has warned.
Saturday, 16 May 2009
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Gerald Spencer is right! But someone else has said that Americans have full access to information.That is crap. Notice that all our candidates and almost all main media are "free traders" and consider any other idea as "protectionist" or provincial and populist or whatever term used to denigrate those who have opened their eyes! If we had honest media, none of this would have happened!
how can you have a stable currency when you don't have a stable political system? there are no political checks in their authoritarian system--a crazy person could muscle their way in and take over any time--where's the stability in that?
Goodbye America? How many times have we heard that before? In the 1980s liberals welcomed the the triumph of Japan's economy over Yankee dominance. But if you must celebrate prematurely, consider: Goodbye USA means goodbye UK, it means a new world order whereby disagreeables are murdered by Putin's Asian soul mates. Fewer women are born, gays are less gayer and "real" torture is goes unprotested.
I think your are right about China.
The 'YUAN' has always pegged itself to the worth of other currencies. As there is no means to arbitrage 'LABOR/COST' in CHINA - THE YUAN WILL NEVER BE THE DOMINANY CURRENCY IN THE WORLD!!! [Much as it is impossible for the members of the EU - to arbitrage the 'cost' of making a pair of shoes in say SPAIN - to the relative 'cost' in say GERMANY - AND MAKE THEM EQUIVALENT.!]
I love it ..The one guy leaves a socialists England for a communist China and he's proud of it...And brags about owning a car .(WOW).. Only thing he forgets its not really his ..Now you idiots want to know what will be more valuable than gold ...(food). And the dumb a$$ liberal progressive scum in the US want to do away with that.
Roubini says that one day the Renminbi might replace the US dollar as reserve currency. Is that news ? It will only be news to a small band of US obscurantists.
But the clue is the use of the word "usurp". America still sees itself as Gods chosen country, with a manifest destiny to impose it's will. Will that ever change ?
US has a lot to offer, but is just so overbearing that it is widely resented. Westpoint Willy reckons it's all about China's military ambitions - stuff and nonsense ! Only the Anglo-Saxon countries, amongst the developed countries, still believe in warfare as an extension of politics. Like torture and "total war", it's so 20th century !
But the good news for all those depressed Yanks out there, is that China admires and likes the US, and is more than keen to work together.
I just hope that this doesn't turn into a cosy condominium to run the rest of the world !!
Texas will soon be leaving the US and so will the Okies. The United States is about to break apart and China will fill the void left behind. It was nice while it lasted.