ongoing attempts at having a new global reserve currency

bubblesmoney

China backs talks on dollar as reserve -Russian source

MOSCOW, March 19 (Reuters) - China and other emerging nations back Russia's call for a discussion on how to replace the dollar as the world's primary reserve currency, a senior Russian government source said on Thursday. Russia has proposed the creation of a new reserve currency, to be issued by international financial institutions, among other measures in the text of its proposals to the April G20 summit published last Monday.

if this takes off, then quantitative easing is toast in the usa. probably there will be armed conflict before this fully takes off.

Wookster

I don't see how this will ever work in practise. Different nations have vastly differing requirement and common currencies constrain that (see the Euro).

Odd for China to be calling for it as they are one of the biggest currency manipulators, as is Russia.

Reaper

Wookster wrote: »

Odd for China to be calling for it as they are one of the biggest currency manipulators, as is Russia.

Not really. China has somewhere between US$1.95 trillion and $2.4 trillion of dollar reserves. Today the US started printing money which means those reserves are going to start dropping in value. No wonder they are annoyed.

lostinrates

Reaper wrote: »

Not really. China has somewhere between US$1.95 trillion and $2.4 trillion of dollar reserves. Today the US started printing money which means those reserves are going to start dropping in value. No wonder they are annoyed.

Yep, I guess China must feel like the STR and big deposit FTBs amoung us felt. The pain does ease.

globalds

So this new currency would need to have it's own recognised value.
Be readily exchangeable to any other currency.

I think I've found something they could use

Wookster

Reaper wrote: »

Not really. China has somewhere between US$1.95 trillion and $2.4 trillion of dollar reserves. Today the US started printing money which means those reserves are going to start dropping in value. No wonder they are annoyed.

Nup - their exchange rate has been far too low for far too long, hence the cheap Chinese products

MrFonzerelli

The hypocrisy gives me a wry smile.
The Chinese authorities have been actively participating in currency manipulation (dollar up, yen down) for some time.

bubblesmoney

MrFonzerelli wrote: »

The hypocrisy gives me a wry smile.
The Chinese authorities have been actively participating in currency manipulation (dollar up, yen down) for some time.

every country manipulates currencies. uk, usa even

the swiss have started to do it in a massive fashion now.

what is quantitative easing. it eases things for the debtors but screws their creditors.

bubblesmoney

Wookster wrote: »

I don't see how this will ever work in practise. Different nations have vastly differing requirement and common currencies constrain that (see the Euro).

Odd for China to be calling for it as they are one of the biggest currency manipulators, as is Russia.

i think they are trying to start a new currency for an international organisation like the IMF or something like that and make that as a reserve currency rather than make a single countrys currency as a reserve and give that country exceptional leverage over others. now usa due to their position as reserve currency can take debts based in dollars and can print their way and devalue their debt and screw every other nation. other nations dont have the luxury of doing that. they (or any other nation) wont have that luxury if there is an international currency as reserve against which all others are measured. dont know how it will work out but dont think it will be gold based or linked. but in the meantime gold might shoot up temporarily if things heat up on the dollar losing reserve status fishing trips.

i think it is about time this happens as no nation should get to have its cake and eat it too at the expense of others.

crazygaijin

The value of the pound is collapsing yet again

And that was before the jobless figures. No wonder that the value of the pound – which shows what the world really thinks of this country – is collapsing yet again.



February's British jobless numbers were always going to be grim - the City was expecting to see more than 80,000 more people out of work. But what emerged yesterday was truly shocking.
Britain's dole queues grew at the fastest pace since records began, taking the headline total to over two million for the first time in 12 years.

http://www.moneyweek.com/news-and-ch...all-14681.aspx

Maybe those 2 mil unemployed should move to Japan.

I live in Tokyo and the pound is so weak and the Yen so strong, you can earn 50pounds an hr minimum, you can get 60pounds an hour to stand in the street holding a sign

I was sending money in Yen back to the UK but now I think I will wait because the pound is going down even more.

Soon you will be able to get 80pounds an hr to clean toilets or wash the floor in a factory in Tokyo.

Poor old UK, what happened how did we get to this?

Generali

bubblesmoney wrote: »

i think they are trying to start a new currency for an internatrional organisation like the IMF or something like that and make that as a reserve currency rather than make a single countrys currency as a reserve and give that country exceptional leverage over others. now usa due to their position as reserve currency can take debts based in dollars and can print their way and devalue their debt and screw every other nation. other nations dont have the luxury of doing that. they (or any other nation) wont have that luxury if there is an international currency as reserve against which all others are measured. dont know how it will work out but dont think it will be gold based or linked. but in the meantime gold might shoot up temporarily if things heat up on the dollar losing reserve status fishing trips.

i think it is about time this happens as no nation should get to have its cake and eat it too at the expense of others.

My guess is that we'll end up with the dollar remaining as the world's reserve currency. They've the biggest economy and if QE looks like causing high inflation then the bond markets will punish the US long before the Chinese have to.