With the Fed intention to create a trillion bucks out of thin air by printing up dollars with which to buy bonds and mortgages, China wants dollar replaced as reserve currency.
China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.
The goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies,” Zhou Xiaochuan, governor of the People’s Bank of China, said in an essay posted in Chinese and English on the central bank’s website.
Chinese central bank (English)
By JOE McDONALD, AP Business Writer - China Wants US Dollar Replaced as Reserve Currency
Published: March 23 2009 15:16