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China's State Press Calls for 'Building a de-Americanized World'
- dimitar 13y ago* The US also provides safe assets in the form of US Securities.. by going into debt. * Treasury notes and bills are widely used as collateral and upon maturity they turn into reserve currency cash. * China, the oil producers run budget and trade surpluses and don't have a history of providing safe assets, like the US, Japan and some EU countries. * Having a reserve currency causes your currency to appreciate, which isn't good for exporters. * On the flip side too much spending will cause inflation, which plagues developing countries, but not the developed. * So they cannot afford to spend as much, without their CB raising interest rates to fend-off inflation, which causes.. currency appreciation and trade deficits. Which country will provide reserves AND safe assets? And what will China do to back this organization in these circumstances?
- AsymetricCom 13y agoI wonder how much of this is scripted by the globalist bankers.
- alan_cx 13y agoI wonder how much internet policy is decided by internet organisations. Or how much war stuff is decided by war people. Or medical policy by medical people. I could tediously go on...
- AsymetricCom 13y agoThe headline says China state press.
- pekk 13y ago"Globalist banker" is a euphemism for the same old tired "Jews control the world" trope peddled by the John Birch society.
- CmonDev 13y agoFacebook, Google, Microsoft... What would Birch say?
- AsymetricCom 13y agoPerhaps in some contexts, but that doesn't negate the fact that the IMF, World bank and other financial players use the media indirectly to set the political stage for their goals, misinforming the populous and otherwise breaking what would be a well informed marketplace.
- selmnoo 13y agoHere's the actual Xinhua (official Chinese journal) article: http://news.xinhuanet.com/english/indepth/2013-10/13/c_132794246.htm http://news.xinhuanet.com/english/indepth/2013-10/13/c_13279...
- oscargrouch 13y agoBitcoin to the rescue! :)
- HowardMei 13y agoNo. Deflation is even worse for economy than inflation is. That's why gold was abandoned. In fact, ancient China had a long history of struggling in awful situations caused by lacking copper/silver/gold for producing enough coins to feed the booming economy system, while the coins were either smuggled to neighbor countries or remelted by domestic speculators. I propose a new digital currency be created according to certain eigenvectors[1] and allometry[2] features of trading network flows or simply the internet traffic flows. The progress of Complex Network[3] theory may tell us more about how to build a solid algorithm for this kind of "evolving coins" to make them decentralized and evolve along with real economic activities. I've been investigating the theory in part time and I dare say somebody with sufficient knowledge is able to figure out a model eventually. IMO, bitcoin is the start of inventing a better currency, not the end. [1]http://en.wikipedia.org/wiki/Centrality http://en.wikipedia.org/wiki/Centrality [2]http://www.nature.com/scitable/knowledge/library/allometry-the-study-of-biological-scaling-13228439 http://www.nature.com/scitable/knowledge/library/allometry-t... [3]http://en.wikipedia.org/wiki/Complex_network http://en.wikipedia.org/wiki/Complex_network
- zoba 13y agoKind of interesting to think about his comment about the goal being to “create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run.” Hmm...I wonder if there are any currencies which currently exist which fit the bill... And then think about pg's point #3 about why a government would have created Bitcoin: "because they felt their currency would never become the standard reserve currency, and they felt it was better that no one's be if theirs couldn't be" (https://news.ycombinator.com/item?id=5547423 https://news.ycombinator.com/item?id=5547423). It won't be proof that BTC came from China if China suggests using BTC as the reserve currency, but pg's point will be proven to me, at least.
- maurycy 13y agohttps://en.wikipedia.org/wiki/Special_drawing_rights https://en.wikipedia.org/wiki/Special_drawing_rights
- oscargrouch 13y agoNo, the proof is the lack of trust of all world in the Wall street greedy and unstopable bankers.. and the mess they do in good economies all over the world(not only domestic) because they dont know when to stop. If US want to keep them its a choice they make, the problem its that other countries cant do nothing about that, even if this stupid behaviour is affecting everybody else and burning down the middle class all over the world
- jadeddrag 13y agoAnother thing to consider is that most bitcoin mining and now the biggest exchange market are both in China.
- andy112 13y ago"...is able to remain stable in the long run." How sure are you that there won't be any significant breakthroughs in bitcoin-mining math/tech over the next 30 years? 100 years?
- zoba 13y ago
- ChuckMcM 13y agoYou see how easy it is to make fun of Americans? :-) It is like Putin deciding to give Snowden asylum. Free poke at the gorilla, look he can't reach over here and hit back. Of course a more open dialog is good, but nobody, especially the Russians or Chinese actually want a world government. That would take all the fun out of being a dictator.
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- zhemao 13y agoWorld government and world currency are not the same. The Chinese government wouldn't really want either though, given the games they play with the Renminbi.
- ChuckMcM 13y agoThey kind of are, the same that is. A reserve currency (such as the one called out here in the article) is a sort of 'place holder' currency. But to be a valid place holder it has to have some structure against which to balance, a connected monetary policy if you will. Look no further than the Euro to see how challenging it is to manage a currency. And note that the countries in the EU are co-operating. Imagine how hard it would be if Greece or Spain was actively trying to siphon money out of Germany because of treaty obligations. If a recipe can be figured out for managing the Euro, then there will be a call for doing the same thing world wide, but until then its just a free poke at the US for being stupid.
- hetman 13y agoOf course, I'm sure any military actions regarding Taiwan, the Spratly islands, etc, isn't going to need any kind of UN approval since they're already Chinese territory that has been unjustly annexed by foreign powers.
- lurkinggrue 13y agoI guess congress can now say Mission Accomplished!
- JumpCrisscross 13y agoThe Chinese are making incendiary comments because the U.S.-centric world order has done well for them. The U.S. Navy patrols the world's seas and so protects global marine trade routes. The U.S. military provides security guarantees which liberate a large chunk of global demand, e.g. Japan, Korea, Singapore, and the EU, for consumption. And the U.S. financial system lubricates the global flow of capital, goods, and services. I agree that the global economy has put too much faith in the U.S. political and financial system. Diversification would encourage competition as well as increase systemic resilience. The present situation, where a U.S. default literally means the implosion of the current world order, is encouraging previously taboo debate to come out into the open. A collapse of the U.S. dollar today shakes up a world in which China is ascending. I'd get mad if someone threatened to flip the game board just as I started getting ahead, too.
- jbigelow76 13y agoI would like to see Obama start to feel out the possible response in the international financial community to unilaterally raising the debt ceiling so this idiocy could be done for good. Just knowing he was doing it would probably cause Republicans to cave so they don't have to admit not authorizing their own expenditures is devoid of all logic. I hate politics.
- yapcguy 13y agoWhy should the debt ceiling be raised? The debt ceiling has nothing to do with meeting ones obligations to creditors. If the debt ceiling isn't raised, simply prioritize what the country's money is going to be spent on.
- JumpCrisscross 13y ago"If the debt ceiling isn't raised, simply prioritize what the country's money is going to be spent on." 1. That could be a form of default. Not on the U.S. debt, but on its contracts. 2. Cash flows are lumpy - that's part of why we have government debt. Even reducing all non-debt payments to zero, the U.S. Treasury will have to default at some point before mid-November. There simply isn't enough money in the U.S. Treasury's account at the Federal Reserve to keep its cheques from bouncing.
- gadders 13y agoI can understand why two political parties arguing might be difficult for China to understand. And the UN has no moral authority at all.
- znowi 13y agoChinese got the balls. I hope the rest of the world will join the effort.
- pippy 13y agoIt would be interesting to see how the Chinese envision an international currency. Essentially fiat currencies regard tax payers as asset-backed securities, and create value by issuing government backed bonds. With no tax payers and no central body (or a joint venture with unconstructive bickering) you'd run into some fundamental issues. You could: 1) peg existing currencies to it (good luck getting buy in) 2) peg the currency to physical goods (gold, oil, etc). Fiat currencies have distinct advantages which make it optimal for modern trade. 3) use treaties to regulate government sovereign bonds with the global currency
- dllthomas 13y agoSomething which occurred to me - a bit without precedent but possibly legal... Congress has the power, with a 2/3 vote, to expel a member. How about, instead of playing chicken with the world economy and our jobs, they put their own jobs on the line: scrap the existing debt limit and replace it with a rule of procedure in both houses that says if the House and Senate can't prevent breach of the debt ceiling (moved as they feel is necessary) they're all expelled. Obviously it'd need to be worded such that a veto couldn't force out congress, but that sounds doable.
- idProQuo 13y agoThey'd all be expelled, we'd hold elections and elect a new congress that does the exact same thing. The problem isn't the people in congress, its the people they represent.
- dllthomas 13y agoI don't think they'd wind up being expelled. The mainstream republicans are supporting this because they fear primary challengers. If the choice is "possibly lose your job vs. definitely lose your job", one obviously dominates.