[International Herald Tribune, France]



Global Times, People's Republic of China

American Arrogance Will End Dollar's Dominance


Does America's fiscal 'vitality' depend on 'voluntary international fiscal blood donations'? This editorial from China's state-controlled Global Times asserts that America's habit of equating 'economic globalization to the globalization of American interests' and its rampant printing of money will soon spell the end of the U.S. dollar as the world's reserve currency."




November 12, 2010


People's Republic of China - Global Times - Original Article (English)

Former French President Charles de Gaulle once lamented that the American dollar enjoys an "exorbitant privilege." This privilege is now triggering protests across the globe. The United States ought not turn a deaf ear to these indignant voices, or the leading position of U.S. dollar will gradually be buried.


What the U.S. Federal Reserve seeks to do is print $600 billion and pump it into the economy - and the Americans clearly understand the impact of FED's move on other countries.


Nevertheless, the U.S. appears determined to equate economic globalization to the globalization of American interests. Barack Obama said in a letter written before the G20 Summit that "strong growth and job creation" would be the "most important U.S. contribution to the global recovery." We sincerely hope he will not repeat such meaningless words in Seoul today.


Only with a multilateral solution among the major powers will a steadier global economic order be sustained.


Globalization is what rallies both developed and emerging powers. The U.S. is the one that decided most of the rules of globalization. And it was the first to propose a common strategy to confront the crisis by initiating the G20 summit. And yet it's American selfishness that has dragged the new mechanism into chaos.


As manager of the world's premier currency and by therefore dominating the global financial system, the United States enjoys colossal benefits. Beyond being a common form of currency, the dollar serves to provide blood transfusions to America's national economy. No matter how tepid the U.S. economy may be, it can turn on the printing presses and instantly bring growth back on track.   




G20 President Nicolas Sarkozy says world must pursue

'international reserve asset not issued by one country.'

[click here or click photo to watch]



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Brazenly, America claims that strong U.S. growth is good for the entire world, while ignoring the fact that its very vitality depends on voluntary international fiscal blood donations. The fundamental reason for U.S. recklessness is the lack of a global mechanism to restrict it.


The world must develop tools powerful enough to bridle the U.S. dollar and the people that manage it. That is why so many countries and organizations are considering a sovereign reserve currency to replace the U.S. dollar.


But no substantial-enough force to impose such restraint has emerged. As a result, the U.S. continues to divide opposition.


Just before the G20 Summit in Seoul, the U.S. successfully convinced India and Japan to take its side.


The global financial system is in urgent need of democracy. It's hard to say how the U.S. dollar will be replaced, but resistance to its dominance is quickly spreading. The more arbitrary the value of the U.S. dollar appears, the more fierce global resistance will become.


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[Posted by WORLDMEETS.US November 15, 1:39am]


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