How Long until a Chinese-Backed Pan-Asian Currency Emerges?

[CorpGovActivist]

Several pundits have noted that China and other Asian business leaders favor "strong currencies."

http://news.google.com/news?hl=en&ned=&ie=UTF-8&scoring=d&q=china+euro+%22stronger+currencies%22

When the euro debuted, there was widespread doubt that historical rivals in Europe could actually pull off a common currency.

Similar doubts are voiced nowadays when a pan-Asian currency is mentioned.

But if Russia, China, and India - for example - can put aside their differences and agree on a common coin, the gravitational pull on smaller economies in the region would be almost impossible to resist.

Our dollar-denominated debt is already facing stiff competition from euro-denominated bonds. A pan-Asian currency could be the death knell of cheap funding for our national debt.

- Dave

[aquart]

1. A while. China and trust aren't synonymous.

[CorpGovActivist]

2. Do Non-Aligned Countries Find China a Good Trading Partner?

http://news.google.com/news?hl=en&ned=&ie=UTF-8&q=china+non-aligned+movement

http://en.wikipedia.org/wiki/Nonaligned_movement

For example, are these nations looking to China to help them extract mineral resources such as oil?

- Dave

[aquart]

9. Good point.

China has been trying to position itself as the country to trust, the nation without centuries of evil dealings with other nations to poison the present. Unfortunately, they ARE poisoning the present because laissez faire free market regulates by death. Difficult position. If they clean up their act, they price themselves out of the cheap labor market. Business moves to India.

Hmmm. Maybe our best hope will be trading wars between the cheap labor powers.

[soothsayer]

3. after the Amero

[Strelnikov_]

4. Vlad is working on it

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=2190024#2191004

”The Rouble must become a more widespread means of international transactions. To this end, we need to open a stock exchange in Russia to trade in oil, gas, and other goods to be paid for in Roubles. Our goods are traded on global markets. Why are not they traded in Russia?”

— President Vladimir Putin, Speaking before the full Russian parliament, Cabinet and international reporters, May 2006

[DavidDvorkin]

5. De facto, it could turn out to be the euro

[Blackhatjack]

6. China is tied to our success in more ways than one....

They hold a lot of our debt, so they have an interest in the currency not crashing.

They sell us a ton of goods, and if we stop buying they cannot maintain the trade surplus with us.

They have some citizens who have moved into a middle class lifestyle, and others hoping to to duplicate that feat. IF exports drop, jobs die out, and unhappy citizens may cause problems.

I don't see a pan-Asian currency, because it is not yet in their economic interests.

[AngryAmish]

7. China does not want to have a "strong currency", it wants to hold them.

Right now China's currency is the yuan. They keep the value artificially low as a boon to domestic manufacturing. It has gone up a little in recent months but it is still kept artificially low.

So: China does not get a benefit from having a strong currency.

Asian common market? Maybe. More likely a GATT type world trade agreement. Common currency? Not for a while. China still has millions of people living in caves. They want to be the world's manufacturing center to raise the people's standard of living.

[opihimoimoi]

8. Bush has fucked the DOLLAR TOO???? OMG...what next?