China Paper Urges New Currency Order After "Tsunami"

[Purveyor]

Source: Reuters

BEIJING, Sept 17 (Reuters) - Threatened by a "financial tsunami," the world must consider building a financial order no longer dependent on the United States, a leading Chinese state newspaper said on Wednesday.

The commentary in the overseas edition of the People's Daily said the collapse of Lehman Brothers Holdings Inc "may augur an even larger impending global 'financial tsunami'."

Its pronouncements do not necessarily directly voice leadership views. But the commentary by a professor at Shanghai's Tongji University, as well as an essay in a Party journal, underscored official alarm at the turmoil in world financial markets.

China's central bank earlier this week cut its lending rate for the first time in six years, a move analysts said was aimed at bolstering the economy and the battered stock market.

"The eruption of the U.S. sub-prime crisis has exposed massive loopholes in the United States' financial oversight and supervision," writes the commentator, Shi Jianxun.

"The world urgently needs to create a diversified currency and financial system and fair and just financial order that is not dependent on the United States."

Read more: http://www.reuters.com/article/usDollarRpt/idUSPEK2402720080917

[SpiralHawk]

1. "We republicons have done a heckuva job with the US economy. Smirk." - Commander AWOL

[FreakinDJ]

2. Needs to be taken Very Seriously

Approx 1 1/2 yrs ago China advised their Asian country neighbors to start divesting theirselves of the US dollar. Those that did reaped the rewards.

It may not tip the whole world immediately but should have a profound effect on the Asian countries

[David__77]

3. They're in a scissors of sorts.

If they safeguard their assets, they will undermine the current financial architecture; if they do not, it may collapse in value. Either way, "socialist China" is far from insulated from global financial crises. At least they have the sense not to have a freely-traded currency.

[Virginia Dare]

10. They've planned for this eventuality..

they will take their financial lumps no doubt, but this is all part of the grand plan to become the dominant world force. Time to make their move.

[David__77]

12. Best of luck to them.

A strong China is a good thing internationally. They won't use their power to wage war and launch coups, etc.

[Hekate]

13. Christ on a Trailer Hitch. Did you forget your sarcasm smiley?

:wow:

I don't think so. China is a very aggressive neighbor, and for an army they have about a brazillion extra young men with no girls to marry (one-child policy begets imbalanced births).

The leaders of the Western nations are fools if they ever let the Chinese truly get the upper hand on them. The leaders of the US are fools.

Hekate

[Nihil]

14. Not disagreeing with your main point ...

... but this bit isn't right:

> one-child policy begets imbalanced births

A one-child policy begets almost equal male/female births.
A dumb cultural "policy" where daughters are seen as expensive
negatives (vs sons as desired positives) is the thing that
begets imbalanced births.

In China's case, a one-child policy is not a bad idea - it was
just the crappy implementation of it that screwed things up.

[benld74]

4. THIS is the other show dropping folks!

[ramapo]

5. The Chinese are clever and stealthy

They thank us for providing the fuel to ignite their economic engine and might have a bit of a smirk considering the amount of US debt that they control.

The macho US has reveled in the fact that we are untouchable as a military power. Too bad the same is not true of our economic power.

[madrchsod]

6. oh well..looks like wal mart may have to set up shop in africa

africans work cheaper than the chinese.....

actually there needs to be a better currency exchange across the world. to do business in china american firms have to go through layers of bureaucracy to pay for goods purchased from china...

[Virginia Dare]

8. China is the new America..

Wal-Mart has already set up shop there, and the Chinese outsource the work to North Vietnam and Africa.

[high density]

7. China not dependent on the United States? What an amusing idea.

Who else is going to buy all their crap besides us?

[Virginia Dare]

9. The billions of Chinese and the Indians..

the ones who have all our money now.

[Wednesdays]

11. I was about to say...

Yeah, it'll be the ones who actually have money now. And it ain't us.