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Chinese officials said this morning the economic crisis has shown the weaknesses of a dollar-led...

Jul. 06, 2009 7:31 AM ETBy: Rachael Granby, SA News Editor2 Comments
Chinese officials said this morning the economic crisis has shown the weaknesses of a dollar-led global economy and the world should look to displace the dollar over time. The IMF's Special Drawing Right could be a possible replacement.

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Comments (2)

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youngman442002 profile picture
they want something to back up their dollars.....oil, copper, gold...something....
Jake Huneycutt profile picture
I'm down on the Dollar, as well, but the economic crisis has to do with a lot more than the USD and China's crusade against it is getting tiresome. China has its own agenda and they are just as much to blame for this crisis as the US. In actuality, the entire move against the dollar has to do with their own ill-advised policy of buying US assets in order to artificially weaken their own currency and boost exports. Yeah ... the US bears its share of the blame, but listening to China preach about the problems of the USD is like listening to Jimmy Swaggert preach about the moral dangers of American society.

The problem isn't so much the USD, as it is currencies that are not backed by any underlying commodity. So long as a currency's value is 100% dependent on perception, there will be problems. The move towards SDR does not seem to alter this dynamic. It's merely a way for China to try to protect its own investment, while still being allowed to manipulate trade.
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