Uh-oh--this isn't going anywhere good

It seems leaders in China just keep pushing and pushing for change when it comes to the monetary system of the world, specifically as the US' dollar is the basis for the rest of the world:

China economist blasts dollar dominance on eve of G20

BEIJING (Reuters) – Dollar dominance is sowing the seeds of financial turmoil, and the solution is to promote new reserve currencies, a Chinese government economist said in a paper published on the eve of a G20 meeting about how to reform the global monetary system.

Let there be no doubt, if this goes their way, the Chinese' way, it won't be pretty for us, ladies and gentlemen.


And after that last financial/economic debacle we caused that went global, what with the creation and then selling of what were supposed to be AAA grade securities that ended up being junk and then, on top of that, not punishing anyone for it or fundamentally changing virtually anything in our system so we're sure it never happens again, you can't too much blame 'em, can you?


I hope this party doesn't end while I'm at it.

Link to original story:  http://news.yahoo.com/s/nm/us_china_g20_dollar

Why is virtually no significant media outlet covering what is possibly one of the biggest stories of the decade?

Did you hear this?

There was a brief mention of Russia, China and Saudi Arabia discussing dumping the US dollar as the currency the value oil is pegged to.

Here's the entry from NPR:

"-- The Independent -- Arab States, China, Russia, Japan And France Are Discussing Not Using Dollar For Oil Trading: "In the most profound financial change in recent Middle East history, Gulf Arabs are planning -- along with China, Russia, Japan and France -- to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar. ... The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years."

It was just a rumor and the reputed participants denied the rumor.

At first.

But in the article I show the first link to at the bottom of this entry, supposedly this conversation did, in fact, go on by OPEC members and it was broadcast, to the shock of reporters.

And it was November, 2007.

So this is the 2nd time this has been publicly considered, apparently.

If this should go forward, folks, the change for us in the US would be extremely far-reaching, in all likelihood.

Here's the way The Independent described it:

"In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading."

"The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations," he said in Istanbul ahead of meetings this week of the IMF and World Bank. But it is China's extraordinary new financial power – along with past anger among oil-producing and oil-consuming nations at America's power to interfere in the international financial system – which has prompted the latest discussions involving the Gulf states."

I don't think the American public is paying attention, either, or knows this kind of thing might be being considered and what it might possibly mean to the nation--and themselves.

It wuold likely knock America down, financially--and considerably.

Pay attention, people.

We'd better be watching what's going on in the rest of the world.

Finally.


Link:
http://tpzoo.wordpress.com/2007/11/19/opec-leaders-debate-ditching-the-dollar-during-private-talks-which-were-mistakenly-televised-to-reporters/
http://www.npr.org/blogs/thetwo-way/2009/10/afghanistan_pakistan_mcchrysta.html

This is the most complete and important article to read, of these three:
http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

Then again, Mish Sedlock thinks it's balderdash:
http://globaleconomicanalysis.blogspot.com/2009/10/ridiculous-hype-over-secret-oil.html