Is China about to dump the U.S. dollar?

[rhonda15]

BEIJING (Reuters) - The United States has plundered global wealth by exploiting the dollar's dominance, and the world urgently needs other currencies to take its place, a leading Chinese state newspaper said on Friday.

The front-page commentary in the overseas edition of the People's Daily said that Asian and European countries should banish the U.S. dollar from their direct trade relations for a start, relying only on their own currencies.

A meeting between Asian and European leaders, starting on Friday in Beijing, presented the perfect opportunity to begin building a new international financial order, the newspaper said.

The People's Daily is the official newspaper of China's ruling Communist Party. The Chinese-language overseas edition is a small circulation offshoot of the main paper.

Its pronouncements do not necessarily directly voice leadership views. But the commentary, as well as recent comments, amount to a growing chorus of Chinese disdain for Washington's economic policies and global financial dominance in the wake of the credit crisis.

U.S. has plundered world wealth with dollar: China paper | Reuters

[lowtaxireland]

not at all. it would lead to a collpase of the value of their reseves. they are more likely to go for a gradual rebalancinjg rather than making any sudden moves.

[rhonda15]

great article:
FSO Editorials: "China's Great Depression" by Krassimir Petrov, PhD 09/02/2004

To summarize, the likely candidates for a trigger to the Chinese depression are (1) a worldwide currency, banking, or derivatives crisis, (2) a U.S. recession, (3) the containment of runaway inflation, (4) the disappearance of Chinese trade surpluses, and (5) an oil supply crisis.

Whatever the trigger of the bust in China, there is little doubt that this will provide the onset of a worldwide depression. Just like the U.S. emerged from the Great Depression as the unrivalled superpower of the world, so it is likely that China will emerge as the next.

[lowtaxireland]

i think Chinese economic power is massively overblown.

[ArtyQueing]

I think they may be running up a flag to see who salutes

[merle haggard]

i hope plaenty do . Its about time to bring them to their knees and consign them to the dustbin of history before they destroy the entire world

[ArtyQueing]

The Chinese will be better? Doubt it - their human rights record is woeful in the extreme. And their current escapades in Africa leave an awful lot to be desired. Out of the frying pan into the fire regarding US and China