BEIJING—"China is calling for a new global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week's London summit on the financial crisis.
The surprise proposal by Beijing's central bank governor reflects unease about its vast holdings of U.S. government bonds and adds to Chinese pressure to overhaul a global financial system dominated by the dollar and Western governments. Both the United States and the European Union brushed off the idea."
Full story at http://www.boston.com/news/world/europe/articles/2009/03/24/china_calls_for_new_global_currency/
Once again some one has missed the entire problem. The problem is that America had a strong economy because of people having jobs and money to spend. Then short sighted CEO's started packing up operations and moving to countries with weak economies and no regulations on industry (Minimum wages, Occupational safety, Environmental protection, etc) to save money and put out a cheaper product to increase sales. OK fine and dandy. In the short run.
The problem is when Americans don’t work they don’t buy. This worked great for a while, Mexico, china and 3rd world countries got jobs they didn't have before so good for them. Problem is they were relying on Americans to buy their products and not their own people (they damn sure weren't getting paid enough to buy what they were making) As Americans started losing their jobs and taking lower paying jobs they could no longer spend. So in effort to get sales up more jobs were exported to reduce prices and get sales back. Rinse and repeat a few times and you get what we have now.
Americans with no jobs so they have no money to spend on those cheap imports. Mexico, China, other 3rd world countries that thought things were going to be great because they now have jobs making things to sell in America now get the rug yanked out from under their feet. The cash cow cant make milk if it does not eat.
The thing that really kills me is no one saw this coming. Well no one in power. I still remember when I was working a factory when Clinton signed NAFTA. Every Blue Collar Shower After Worker saw this as bad thing, and this would bite them in the ass in the long run
Global Currency is not the answer. A level playing field is. Every one has the same rules to play by (Minimum wages, Occupational safety, Environmental protection, etc) is the only answer to get a "Free" and "Fair" global economy.