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

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China is still not the sort of place where the media have the freedom to run stories that are contrary to the leaderships views. I posted a video from Al jazzera recently featuring an interview with a Chinese farmer who was not very happy about being expected to bail out the US with his savings. I didn't think much of it at the time but when I read the article below I began to see a connection between the two stories as a 'trial balloon' for a change in the economic order of the world.

 

News stories and interviews from China don't get much publicity if they are not inline with China's leadership, and there are consequences for people who voice opinions that differ from the leadership. I feel that it is meaningful shift for two such stories to come out in quick succession, I don't expect that the dollar is going to lose its world reserve status overnight or even in the next few years, but if not this decade then the next decade will see a shift away from the dollar towards a less US centric world financial order.

 

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

Fri Oct 24, 2008 6:14am EDT

http://www.reuters.com/article/forexNews/i...E49N1XX20081024

 

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 Part
y. 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.

 

"The grim reality has led people, amidst the panic, to realize that the United States has used the U.S. dollar's hegemony to plunder the world's wealth," said the commentator, Shi Jianxun, a professor at Shanghai's Tongji University.

 

Shi, who has before been strident in his criticism of the U.S., said other countries had lost vast amounts of wealth because of the financial crisis, while Washington's sole concern had been protecting its own interests.

 

"The U.S. dollar is losing people's confidence.
The world, acting democratically and lawfully through a global financial organization, urgently needs to change the international monetary system based on U.S. global economic leadership and U.S. dollar dominance
," he wrote.

 

Shi suggested that all trade between Europe and Asia should be settled in euros, pounds, yen and yuan,
though he did not explain how the Chinese currency could play such a role since it is not convertible on the capital account.

 

A two-day Asia-Europe Meeting (ASEM) of 27 EU member states and 16 Asian countries was set to open on Friday. Though few analysts expect much in the way of concrete agreements, Shi said it could prove momentous.

"How can Europe and Asia grasp each other's hands and together confront the once-in-a-century global financial crisis sparked by the U.S.; how can they construct a new equitable and safe international financial order?" he said.

 

"The world is waiting for this Asian-European meeting to achieve big results in financial cooperation."

 

(Reporting by Simon Rabinovitch; Editing by Ken Wills)

 

=================================

 

Video report:

 

Banking on China

http://english.aljazeera.net/news/asia-pac...4626734325.html

 

Western leaders are hoping the 1.3 billion Chinese consumers will save the world economy.

 

Despite three decades of rapid expansion, however, the majority of China's population remains relatively poor and hopes that they can pick up the slack left by American consumers appear to be optimistic.

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I posted this article earlier on the Jim Sinclair thread, but you're right and it might deserve its own thread.

 

The reason why the US Dollar is the global reserve currency is the overwhelming economic power of the United States, in particular as it was after WWII. I personally don't want to live under a Chinese rulership of the kind as we have it in mainland China. I also don't like the economic environment China has created. I like the principals that formed the US, I like the entrepeneurship of US citizens. However, the US must earn back this respect people still have for it all over the world, with better military, energy and financial policies. If the US can become again a less agressive, less wasteful and more financially prudent nation, its currency might actually deserve the status it has enjoyed up until today. Other than that, I can only see gold as an alternative currency that is also practical. I would not like to change fiancial dependence on the US with one on Russia or China.

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I posted this article earlier on the Jim Sinclair thread, but you're right and it might deserve its own thread.

 

The reason why the US Dollar is the global reserve currency is the overwhelming economic power of the United States, in particular as it was after WWII. I personally don't want to live under a Chinese rulership of the kind as we have it in mainland China. I also don't like the economic environment China has created. I like the principals that formed the US, I like the entrepeneurship of US citizens. However, the US must earn back this respect people still have for it all over the world, with better military, energy and financial policies. If the US can become again a less agressive, less wasteful and more financially prudent nation, its currency might actually deserve the status it has enjoyed up until today. Other than that, I can only see gold as an alternative currency that is also practical. I would not like to change fiancial dependence on the US with one on Russia or China.

 

The US is no longer the state its forefathers envisioned...

 

1) Banks are in control - Lincoln, Jackson, Jefferson but a few who knew and openly discussed the risks of big banks.

2) A Federal Reserve was established - again this was often rejected by the early presidents who had seen Central banks in action accross europe.

3) The gold standard has been ignored - this was always a fundamental part of the US ideal for trade strength and moderation of currency expansion.

4) Income tax is inforced - this was rejected soooo many times in the US and then sneeked through (much like the fed) off the back of other legislation (whether income tax is really legal is still questioned in some US courts).

5) The patriot act - never in the history of US governance has a single piece of legislation so totally set aside and violated human rights for US citizens.

 

If some of the early US presidents could speak today i have no doubt they would be in shock and horror at what their country has become... despite its power and wealth they would recognise that the power and wealth is still held by fewer individuals than ever and that US "democracy" is in fact a political oligarcy of very few. Every 4 years the voters have a choice of TWO people for presidents and the social issues (so often the focus of elections i.e. guns/abortion etc.) rarely change between Republican and Democrats.

 

They would recognise invasions of countries like Iraq as nothing more than attempts to gain control over natural resources and strategic geographic positions because they saw europe doing much the same over the Americas, Afirca and Asia in their time.

 

Most Americans i have met are fine, good, honest people - but none that i know personally actively try to understand these critical changes to the country they live in and how it impacts them... much the same as in the UK... and worse still, few people of either nation choose to find these things out for themselves.

 

I agree that China and Russia offer little hope for an alternative system that would be any better... the Russian economy is even more dominated by even fewer people with wealth and power and the population (much as in most of China) have low standards of living.

 

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The US is no longer the state its forefathers envisioned...

 

1) Banks are in control - Lincoln, Jackson, Jefferson but a few who knew and openly discussed the risks of big banks.

2) A Federal Reserve was established - again this was often rejected by the early presidents who had seen Central banks in action accross europe.

3) The gold standard has been ignored - this was always a fundamental part of the US ideal for trade strength and moderation of currency expansion.

4) Income tax is inforced - this was rejected soooo many times in the US and then sneeked through (much like the fed) off the back of other legislation (whether income tax is really legal is still questioned in some US courts).

5) The patriot act - never in the history of US governance has a single piece of legislation so totally set aside and violated human rights for US citizens.

 

If some of the early US presidents could speak today i have no doubt they would be in shock and horror at what their country has become... despite its power and wealth they would recognise that the power and wealth is still held by fewer individuals than ever and that US "democracy" is in fact a political oligarcy of very few. Every 4 years the voters have a choice of TWO people for presidents and the social issues (so often the focus of elections i.e. guns/abortion etc.) rarely change between Republican and Democrats.

 

They would recognise invasions of countries like Iraq as nothing more than attempts to gain control over natural resources and strategic geographic positions because they saw europe doing much the same over the Americas, Afirca and Asia in their time.

 

Most Americans i have met are fine, good, honest people - but none that i know personally actively try to understand these critical changes to the country they live in and how it impacts them... much the same as in the UK... and worse still, few people of either nation choose to find these things out for themselves.

 

I agree that China and Russia offer little hope for an alternative system that would be any better... the Russian economy is even more dominated by even fewer people with wealth and power and the population (much as in most of China) have low standards of living.

 

Great post pyewackett.

 

When there was a gold standard was it not a fraudulent act by the US PTB to print dollars when they did n't have the gold reserves to back the new paper? I'm thinking of the time up until 1971 when De Gaule rumbled what was going on then wanted to exchange the frenchs' dollar reserves for gold.

 

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Great post pyewackett.

 

When there was a gold standard was it not a fraudulent act by the US PTB to print dollars when they did n't have the gold reserves to back the new paper? I'm thinking of the time up until 1971 when De Gaule rumbled what was going on then wanted to exchange the frenchs' dollar reserves for gold.

I read in the news that Sarkozy spends his sparetime at home trying to summon the spirit of de Gaulle.

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Most Americans i have met are fine, good, honest people - but none that i know personally actively try to understand these critical changes to the country they live in and how it impacts them... much the same as in the UK... and worse still, few people of either nation choose to find these things out for themselves.

 

Hmm.

Well, I think you will find a few on GEI who are working to spread understanding.

And there are many fine podcasts from Americans that you can find here

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Hmm.

Well, I think you will find a few on GEI who are working to spread understanding.

And there are many fine podcasts from Americans that you can find here

 

Completely agree there are a lot of people confronting issues online and probably more americans discussing it now (due to the economic climate) than ever before. It was just to say that out of my personal friends and aquaintances (professionals - 25-35 age) i feel that the number of people actively discussing these major issues is still small and a bit confused... they dont understand fiscal/monetary policy... they dont understand how interest rates are supposed to be used... and personally i have great fear for many of them who have bought property very recently (despite my warnings obviously).

 

Certainly one of the reasons i spend so much time reading and talking online is because i care a great deal about the issues we face today and that i know many people who i have tried to inform and quite simply found they don't want to know.... which is a shame... although one or two have started to realise there are big things taking place I fear most wont really 'get it' until they lose jobs/homes and/or find prices of food or other goods rising significantly faster than ever... I'm from the generation who always bought on credit, we got used to it early as that was the only was to fund our educations... we went on extravagant holidays and boughts ipods/flat screens TV's because we felt we deserved it... and I personally have been saving since i realised what was coming a few years ago and encouraging others to do the same... but often it feels like being chicken little running about saying the sky is falling and no-one really caring.

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The whole attitude to debt in society has come full circle since a few generations ago. To go into debt was frowned upon then, but now or up until recently it was cool.

 

I remember Bush saying in one of his recent emergency speeches in the rose garden that they were trying to get the credit markets moving again so that ordinary americans can pay their bills.

 

How sad can a society get where people have to borrow to pay their bills, if this is not a clue for ordinary people of how intrinsically wrong our system is then I don't know what is. This clue has been in front of peoples faces for years but only a prudent minority has seen it for what it is and not got caught up in it. Now those people are going to be rewarded for their prudence by paying for the excesses of others through higher taxes and inflation! Fantastic!

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Wonderful link thanks!

 

The bottom 3 are very significant:

 

3rd largest deficit in the world.... UK!

2nd largest deficit................. Spain!!!

 

And the winner is of course ........ USA!!!!!

 

186 United Kingdom $ -119,200,000,000 2007 est.

187 Spain $ -145,300,000,000 2007 est.

188 United States $ -731,200,000,000 2007 est.

 

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