From the New York Times, Zhou Xiaochuan, governor of the People’s Bank of China, said a new global currency reserve system controlled by the International Monetary Fund could prove more stable and economically viable than the US dollar. You can read his one-page think piece here.
This is a significant thing because China has vast holdings in US dollars, which are likely to be suddenly devalued (becoming ‘worth’ less to them) because of the credit easing, (or, printing of imaginary money) which the US government is now engaged in.
It is not coincidence that this idea is being floated by the Chinese, one week before the meeting of the G20 in London. They know America is weaker now as an economic power than it has been since the end of world war 2.
UPDATED: 11.20am. The BBC report is here.
The implications of a new global currency would be the effective end of US economic hegemony as the military and economic superpower and more of a multi-polar world.