Posted by: rotenochsen | March 25, 2009

WILL OBAMA DESTROY OUR DOLLAR?




There are strong signals from the major holder of our Treasury Bonds, China, that they no longer trust our dollar.
The President of the Communist Chinese Republic, Hu Jintao, wants the International money Fund/Bank to establish a new dollar because they believe the dollars they receive in interest are devalued. They believe this, not as President Obama would like US to believe, that Bush created this economic mess, but because Obama’s printing presses are running so fast that the dollars he is putting into circulation will become worthless in rapid order.

The following is a direct quote from China. “Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.

“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.

Although Mr Zhou did not mention the US dollar, the essay gave a pointed critique of the current dollar-dominated monetary system.

“The outbreak of the [current] crisis and its spillover to the entire world reflected the inherent vulnerabilities and systemic risks in the existing international monetary system,” Mr Zhou wrote.

China has little choice but to hold the bulk of its $2,000bn of foreign exchange reserves in US dollars, and this is unlikely to change in the near future.

To replace the current system, Mr Zhou suggested expanding the role of special drawing rights, which were introduced by the IMF in 1969 to support the Bretton Woods fixed exchange rate regime but became less relevant once that collapsed in the 1970s”.

Today, the value of SDRs is based on a basket of four currencies – the US dollar, yen, euro and sterling – and they are used largely as a unit of account by the IMF and some other international organisations.

When will the insanity in Congress and the Oval office stop? I hope the end game is NOT to bankrupt America and the Change we have been promised is the same that Lenin, Marx. PolPot and Moa promised!

And last night during his press conference he denied this report and had the gaul to say the economy is getting better!
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