Comments on: China Flexes its Muscles and Finds Support in a Bid to Dump the Dollar as the World's Main Reserve Currency

By: As Global Currencies Weaken, Gold Posts Triple Digit Gains Worldwide

As Global Currencies Weaken, Gold Posts Triple Digit Gains Worldwide — Fri, 05 Feb 2010 16:02:26 +0000

[...] of the Canadian dollar since 1999, it has risen fully 260.5% against the U.S. dollar. No wonder there have been calls for the end of the American dollar as the reserve currency of the world. The U.S. dollar just hasn't demonstrated any long-term strength. Sadly, there is no paper [...]

By: Gold Prices Soar to Record High on Report of Secret Plan to Dethrone the Dollar

Gold Prices Soar to Record High on Report of Secret Plan to Dethrone the Dollar — Wed, 07 Oct 2009 09:02:40 +0000

[...] Money Morning: China Flexes its Muscles and Finds Support in a Bid to Dump the Dollar as the World's Main Re… [...]

By: With Inflation on the Horizon, Gold Prices are Ready to Rally

With Inflation on the Horizon, Gold Prices are Ready to Rally — Thu, 16 Jul 2009 10:01:33 +0000

[...] Money Morning Special Report: China Flexes its Muscles and Finds Support in a Bid to Dump the Dollar as the World's Main Res… [...]

By: Investing in gold

Investing in gold — Tue, 23 Jun 2009 22:35:13 +0000

By: Geithner Opens Up Debt Dialogue With China, but the Dollar Still May be Doomed

Geithner Opens Up Debt Dialogue With China, but the Dollar Still May be Doomed — Wed, 03 Jun 2009 10:09:55 +0000

[...] Money Morning: China Flexes its Muscles and Finds Support in a Bid to Dump the Dollar as the World's Main Re… [...]

By: China Seeks to Dethrone the Dollar, Transforming the Yuan into the Dominant Global Currency

Wed, 27 May 2009 17:11:38 +0000

[...] Money Morning News Analysis: China Flexes its Muscles and Finds Support in a Bid to Dump the Dollar as the World's Main Res…. [...]

By: China/Taiwan Investment Accords Will Lead to Profit Plays for Investors

China/Taiwan Investment Accords Will Lead to Profit Plays for Investors — Tue, 05 May 2009 10:02:12 +0000

[...] exposure and help propel it to its eventual place among the world's leading currencies, an important goal of the Chinese [...]

By: China Pursues Worldwide Growth Opportunities Caused by the Global Financial Crisis

Fri, 01 May 2009 10:20:55 +0000

[...] cash-rich China, however, the financial crisis is shaping up to be a major opportunity, with payoffs that will last [...]

By: PhanThuy

PhanThuy — Tue, 14 Apr 2009 09:32:36 +0000

It is to remind that the Gold Standard Exchange System was abolished by R. Nixon in 1971 in order to give the US government an international blank check to finance the Viet Nam War. Consequently since then the dollar has no guarantee except for the good words and good deeds of a US President and its governance. As soon as the US governance (both political and economic) is no longer credible as it is today, the US dollar as the world’s main reserve currency is deemed to loose its supremacy and confidence and will crash if China and other private investors start to get rid of its large holdings of U.S. Treasuries. Neither a simple return to GOLD as a reserve currency nor a simple use of SDRs as a new and widely accepted reserve currencys is a good alternative. Firstly, set up a settlement system between either the GOLD or the SDR and other currencies is easier to say than to do. We need to review and evaluate the IMF efficiency and effectiveness in operating and managing the traditional SDRs for the last 3 decades. Secondly, the practical use of the SDR in international trade, commodities pricing, investment and corporate bookkeeping needs to be tested with the private sector about its efficiency and effectiveness. Given the complexity of today's financial world, flexibility in super-sovereign reserve currency and its composition is required. Why not having a super-sovereign reserve "basket"composed of 50% in GOLD Exchange Standard (obligatory to discipline and monitor central banks) and 50% in selected main currencies normally used in international trade, commodities pricing, investment and corporate bookkeeping. Before setting up a new settlement system it is suggested to review the composition of currency reserves of each country. It is noted that Switzerland and Taiwan have at least 50% of its reserves in GOLD while the rest has more than 70% in main currencies, namely US dollars, UK pounds, Euros and Yen. Hence their vulnerability as compared to the Swiss franc.

By: nizar mecklai

nizar mecklai — Mon, 13 Apr 2009 12:24:37 +0000

There is no doubt a need for a RESERVE CURRENCY/PRODUCT acceptable to ALL COUNTRIES and which is not influenced by POLITICAL CONSIDERATIONS. Both the US$ and the SDR are subject to political maneuveurs by the Security Council Powers and the USA – viz. freezing accounts of Iran, Egypt, for political reasons.
A return to GOLD would be ideal as it is a product which could be exchanged in specie or by a Share Certificate on the COMEX and other exchanges without any COST in INTEREST CHARGES but only by its price fluctuations.