China's Hu Jintao: Currency system is 'product of past'

China's Hu Jintao: Currency system is 'product of past'

www.bbc.co.uk

Chinese President Hu Jintao has said the international currency system dominated by the US dollar is a "product of the past".

Mr Hu also said China was taking steps to replace it with the yuan, its own currency, but acknowledged that would be a "fairly long process".

The remarks to two US newspapers come ahead of a state visit by the Chinese leader to Washington this week

(visit the link for the full news article)

Most of us here have seen this coming. Unfortunately all the doomsayers in the world has also said this was gonna happen.

The dollar it seems will indeed be replaced as the worlds Global currency.

I wonder how the markets will react to this tomorrow.

Hu Jintao said this will be a long task, but I have to wonder about that.

www.bbc.co.uk
(visit the link for the full news article)

This will definitely have an interesting effect on confidence in the market - and I for one can't wait. I do think that it won't be an overnight change, mostly because the current system has integrated the US dollar so deeply that a major and massive change is difficult to make.

It's about time to abandon the sinking ship that is the US dollar, but I feel like switching the global currency isn't a big enough change. The entire economic system needs an overhaul to avoid future catastrophe - but what that change is, I have no idea. In a Utopian world, we'd live more communally rather than competitively, which would mean certain powerful nations and corporations wouldn't exploit others for financial gain or competitive advantage. Power would be back in the hands of the average person rather than corporations - we'd live for happiness, not for money and consumption.

I guess the question right now would be, are the Chinese competent enough to take over being the financial superpower? And what will be the US's last ditch effort be in order to keep their stranglehold on the world?

reply to post by pforkp


I really really want to know how the FED will react to this, it would seem unacceptable to them....

I wonder how far and how fast this will escalate. If Hu backtracks it will show how much power the FED wields, but I don't see that happening...

Originally posted by LDragonFire
I really really want to know how the FED will react to this, it would seem unacceptable to them....

Why is that?

It would help them achieve their goal of collapsing the US.

reply to post by NuclearPaul


But China wants a new finacial system, where would the FED be in all of this?

This international financial crisis has reflected the absence of regulation in financial innovation. Its root cause lies in the serious defects of the existing financial system. . . .

Here is the link it has 3 pages of the interview with Hu:
Excerpts from H Jintao interview

the only reason there is poverty it because of international currency manipulation.

someone picks a banana and gets paid 10/hr but in another country, doing the same task with the same effort, gets paid 3x less. the guy can't feed his family because the international financial community says his country's currency is worth less.

i believe it's all based on racism, since the darker the skin tone of the people, the less their money is valued.

Originally posted by randomname
the only reason there is poverty it because of international currency manipulation.

someone picks a banana and gets paid 10/hr but in another country, doing the same task with the same effort, gets paid 3x less. the guy can't feed his family because the international financial community says his country's currency is worth less.

i believe it's all based on racism, since the darker the skin tone of the people, the less their money is valued.

So it seems, but it's also racist to flood a country with a third world one and drive down wages for the host country where it's more expensive to live than where the darker skin toned folk come from!

It seems there has been no real reaction from wall street, I find that in itself very very interesting.....

Are we in denial?

reply to post by randomname


I was just reading Reuters and found this...
US senators threaten currency bill ahead of Hu visit

"There's no bigger step we can take to preserve the American dream and promote job creation, particularly in the manufacturing sector ... than to confront China's manipulation of its currency," Democratic Senator Charles Schumer said.

The message to Hu is "we are fed up with your government's intransigence on currency manipulation. If you refuse to play by the same rules, we will force you to do so," Schumer said in a conference call with reporters.

Beijing's currency practices give Chinese companies an unfair price advantage in trade and have acted like "a boot on the throat" of U.S. economic recovery, Schumer said.

reply to post by SLAYER69


The economic wars are well underway...

I also caught the slant different news sources are displaying about this topic. It's huge and I don't think the US will sit around idly while China makes it's economic moves, we don't have over $700 billion for defense for nothing.

Or whats happening is being orchestrated by the PTB behind the scenes in China and the US, the lack of Market movement would indicate this might be the case.

reply to post by LDragonFire


Yes, each side has been reacting to the others in an ever increasing escalation of counter moves.

The US needs to man-up and make room at the table for China, China on the other hand needs to also man-up and realize who set the table with regards to system of finance they rode to their position. It's a big table no need to start fighting over table scraps IMO.