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2009-07-04 18:34:29
Harmor
Error_Name_Not_Found
+605|6842|San Diego, CA, USA
India refueses to trust American dollar as the reserve currency – china and Russia push forward the alternative to American financial dominance

India Daily wrote:

Praful Lodha
Jul. 4, 2009

India is slowly expressing its deep concern over trusting American global financial leadership. India has now joined hands with Russia and China in looking for an alternate to American Dollar as the reserve currency.

“The major part of Indian reserves is in dollars -- that is something that’s a problem for us,” Tendulkar, chairman of the Prime Minister’s Economic Advisory Council, said in an interview yesterday in Aix-en-Provence, France.

China and Russia have stepped up calls for a reconsideration of how global currency reserves are composed and managed, underlining a power shift to emerging markets from the developed nations in view of the fact that the global financial meltdown was caused by American and European blunder in financial management.

“There should be a system to maintain the stability of the major reserve currencies,” Former Chinese Vice Premier Zeng Peiyan said in a speech in Beijing, pointing out very clearly China’s concerns about a global financial system dominated by the dollar.
Wouldn't interest rates in the United States skyrocket if they don't hold our currency in reserve?
2009-07-04 20:11:03
Dilbert_X
The X stands for
+1,817|6400|eXtreme to the maX
Interest rates would go up.
Value of the dollar would go down.
Cost of imports would go up.

Gold is the simple answer.
Fuck Israel
2009-07-04 20:32:42
S.Lythberg
Mastermind
+429|6741|Chicago, IL
Well, they're right, America's financial system obviously cannot be trusted anymore.  If we want to remain the standard, we have to clean up or finances
2009-07-04 22:00:12
Masques
Black Panzer Party
+184|7016|Eastern PA
IMO this will come to naught.

The crude fact is that there is no viable alternative to the dollar at this point. I think this has more to do with China looking for a hedge before its own unsustainable growth fizzles and Russia looking to capitalize on petroleum earnings. India has traditionally been close to both China and Russia and is likely reacting to recent news that Pakistan is starting to take extremist groups more seriously, which will bring it closer to the US.

As bad as the US is economically it's getting better and frankly many other countries are in worse shape.
2009-07-05 05:58:21
Harmor
Error_Name_Not_Found
+605|6842|San Diego, CA, USA

Masques wrote:

As bad as the US is economically it's getting better and frankly many other countries are in worse shape.
Its going to get worst, in my opinion, because of all the government regulation, spending, and new taxes coming down the pipe.  Just like 1976 and 1992, the Democrats will overreach and it will take an election cycle or two for there to be a correction.

I wish we had a Republican congress and a Democratic President...like in the 90s with Bill Clinton and the Newt Gingrich Congress - those were good years.
2009-07-06 15:01:31
Turquoise
O Canada
+1,596|6699|North Carolina
I suppose the Euro is the future's global currency.

 

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