Thx Keith for the heads up.

From the NY Times

China Urges New Money Reserve to Replace Dollar

SHANGHAI — In another indication that China is growing increasingly concerned about holding huge dollar reserves, the head of its central bank has called for the eventual creation of a new international currency reserve to replace the dollar.

In a paper released Monday, Zhou Xiaochuan, governor of the People’s Bank of China, said a new currency reserve system controlled by the International Monetary Fund could prove more stable and economically viable.

A new system is necessary, he said, because the global economic crisis has revealed the “inherent vulnerabilities and systemic risks in the existing international monetary system.” (more…)

Here’s more from Seeking Alpha~

“Next week’s G20 Summit will hear calls for a new global reserve currency. China and other emerging nations back Russia’s call for a discussion on how to replace the dollar as the world’s primary reserve currency, a senior Russian government source said on Thursday. Russia has proposed the creation of a new reserve currency, to be issued by international financial institutions.

And this idea is not just coming from US competitors or potential adversaries.

A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies adding to pressure on the dollar.

Former Head of Currency Research at JP Morgan Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.”

A couple of quick thoughts~

#The US must have given up a whole lot to convince China to carry more of our debt. China would not push their entire economy further in jeopardy unless there were some major trade offs. Too bad the average Joe could care less about those details. Just a smiling President who is photogenic will do.

#I was aware of Russia and China calling for this type of currency last week. But with China adding their voice to this proposal, it is now just a matter of time.

#Just another step closer to a centralized world government.