China won't press for new global currency at G8
Interesting. I remember reading that Putin had proposed such an idea awhile back too.
Interesting. I remember reading that Putin had proposed such an idea awhile back too.
Interestng... So what is being said here is "kiss the US Dollar goodbye" we're looking for a new standard but China has far too much US dollars owed and lent.
So which currency becomes the bill of choice?
So which currency becomes the bill of choice?
petros
Yeap , George Washington or Chairman Mao .
China the new cool guy on the block. Not number one, but looking more on the way up than on the way down. And not needlessly invading countries. Will things change if the US gets its economy on track? I wonder.
Before there was no discussion about a new world currency, it was absurd, now it just casually comes up every few weeks. The Chinese said they won't bring the topic up, but they will discuss it if someone else does. So cool. Green no longer is the only colour of money.
I'd rather have a fist full of RMB.petros
Yeap , George Washington or Chairman Mao .
But let's not forget that China is going through many growing pains too at the moment. I think the whole world is hurting from this crisis, but the developing countries have just discovered a new strategy to make their rise less painful... co-operation. I don't think it will take long for the developed countries to realise that this same strategy could make their decline easier too, until both groups of nations eventually reach equilibrium.
The BRICs are rising despite the USA falling. They can improve while the USA declines, which says a bit about the changing world we are in. They have endless problems, but they charge on.
I think one reason they are growing is in fact their greater willingness to consult with one another, compared to the US' go-it-alone attitude.
Before anyone gets too excited about this though, let's not forget that the euro had been officially discussed over a decade before its implementation. Seeing that now we're talking about something on a global scale, and that, though NGOs had officially proposed this decades ago, this is the first time any government has officially expressed support for it. So if the euro took well over a decade to go from the drawing board to reality on not even one continent (and a few overseas territories, granted), a world currency will likely take even longer to implement. So if they've only started to discuss it recently, then we're not going to see its implementation for well over a decade at least, if not much longer (at least European countries have more cultural similarities than countries from all over the world). This is but the conception of the officialization of the discussion of the idea at an inter-governmental level. It's got a long way to go before its its birth pangs are felt.
The Euro took time to implement and they had votes over it. China and voting don't seem to go together very well, being a dictatorship still. Real elections for any reason aren't something China nor Russia want any time soon. India and Brazil might be a different story on this issue though. Public participation and voting has to be part of the deal here.
Russia is reasonably democratic already. As for China not being democratic, it's got a ways to go yet, but is moving in the right direction, slowly but surely. You do have a point though that tht will likely be a major point of contention before they could ever agree on a common currency. If we consider the various conditions placed on European nations to join the Euro, surely similar conditions will likely be imposed on any kind of world currency, and I'm sure such countries as India will be very insistent that the Bank responsible for printing it be under some kind of either direct or indirect democratic control. This will likely slow down the process even more, possibly by yet another decade or more. So we're likely looking at a minimum of thirty years at least before any such currency is implemented, and even then there's no guarantee that it would be a world currency (let's not forget North Korea), but more liley a transcontinental currency including many developing countries.
Yet the fact that the topic is officially on the table, that the Euro is already implemented, and that the idea of shared currencies has grown in Africa and central America too, albeit on more of a continental level, is bound to push discussion of the topic in North America too over time.