The Wall Street Journal reports: "China called for the creation of a new currency to eventually replace the dollar as the world's standard, proposing a sweeping overhaul of global finance that reflects developing nations' growing unhappiness with the U.S. role in the world economy. [...] China is on the offensive, backed by other emerging economies such as Russia in making clear they want a global economic order less dominated by the U.S. and other wealthy nations."
Comment: As I noted in my comments on a similar news report on the Mark Watch blog, it's important to note here that they are not talking about currency in the way you are probably thinking about it, as in the currency you use every day. They are talking about accounting units used by international banking institutions to lend money to other institutions and countries. This is still important because the EU's common currency, the Euro, began in the same way, so it's entirely possible that this effort to create a new international reserve currency could lead in the future to the rise of a new international currency of the type that individuals could use. I'm also worried about the obvious anti-American agenda behind China and Russia seeking alternatives to the U.S. dollar. You may have heard about a so-called "new world order," there are actually several different competing world orders (there always are) and the world order being promoted by Russia and China is a world in which the U.S. is no longer the leader of the global system. They appear to be doing everything they can to undermine the dollar (with a little help from American politicians). It will be interesting to see how the Obama administration reacts to this effort. Stay tuned.
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