PBOC’s Yudong calls for new Bretton Woods

China Securities Journal article: PBOC’s Yudong calls for new Bretton Woods

People's Bank of China official Yao Yudong has an article in the China Securities Journal calling for a new "Bretton Woods".

www.fxstreet.com...#

Currently this is just breaking and not much information as to the reaction in the economic world, but may perhaps be the end of the US Dollar reserve currency status.

As far as I can tell, this is just China "suggesting" - not actually taking place. But still serious in my opinion. The only thing keeping the US afloat is the petrol dollar (and we are seeing countries starting to sell that in yuan)


Your thoughts?

and a little info for those who are not familiar with Bretton Woods:

en.wikipedia.org...

Also, one should note China has been selling oil in yuan since last year:

www.examiner.com...

I imagineChina is paying Iran in Gold for its oil from them......
The end of the US reserve currency dominaton is at hand.....
The return of other nations gold reserves is also at hand....But do they still have it?
Bretton woods benefitted the USA and the west for the last many decades.....Now it time to wrest a new agreement for the world and establish a new pecking order.
Well be stepping down my friends, and a long ways at that.......

A google translation of the entire article is here. A very lengthy article but even a quick read you can tell the author is basically arguing that the world needs a new Bretton Woods system due to the policies of Competitive Quantitative Easing and excess liquidity globally. Need a new reserve currency structure that is 'anchored' and not necessarily backed by anything other than the establishment of a global central bank to create the conditions and constrain liquidity.

Lets hope the next financial trouble doesnt morph into a crisis that spirals into a loud call by global community for a new brettonnwoods. Usa would not be the same place for many to live. We would learn what real inflation is like.