Well it is
news. It is indeed China's goal to replace the dollar in this capacity. There have been a few statements now, and some support. Perhaps justified support and while one may not be able to accurately predict whether it will happen or not, there is a certain degree of likelihood that it will indeed come to pass. China and Russia are on the rise while we're on a steady decline. Unlike our nation those countries are not inclined to tie their own arms behind their backs as a prerequisite for competition.
poised to soak up even more of the US's dying steel trade following a certain dysfunctional bill now aimed at the senate - we'll pay them for more of our steel, producing less of it ourselves, a deadly blow to our economy and a very ironic one considering that they will produce it in absence of even 25% of the pollution-oriented restrictions we currently operate under. (Again, "unlike our nation those countries are not inclined to tie their own arms behind their backs as a prerequisite for competition".
The power of our government increases in relation to its citizens and decreases in relation to the world at large. Good for the ruling party, bad for the country. Powerful to us
, weak to the world.
I believe the drastically shrunken middle class will continue to shrink - drastically. By the end of two terms, people will have a hard time remembering the taste and the feel of the prosperity that they vaguely recall voting for. We may end up with a large "poverty-class" who will have spent almost two decades
in such harsh economic conditions that they become, dare I say (dangerously) ignorant and easy to (politically) manipulate to an extent we've yet to imagine. Powerful government + sustained weak economy = a very dark age in American life.
"“This means the end of the dollar,” Hudson told me. “It means China, Russia, India, Pakistan, Iran are forming an official financial and military area to get America out of Eurasia. The balance-of-payments deficit is mainly military in nature. Half of America’s discretionary spending is military. The deficit ends up in the hands of foreign banks, central banks. They don’t have any choice but to recycle the money to buy U.S. government debt."
My instant impression: "the system is breaking". That may be the hallmark of very negative world developments.
“China is trying to get rid of all the dollars they can in a trash-for-resource deal,” Hudson said. “They will give the dollars to countries willing to sell off their resources since America refuses to sell any of its high-tech industries, even Unocal, to the yellow peril. It realizes these dollars are going to be worthless pretty quickly.”
Disassembling that statement... China may be reacting via a much clearer view of the impending decline of our dollar than our citizens are generally afforded. Money talks
As a note for all the immediate naysayers, this article's primary source is Michael Hudson:
"President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of Super-Imperialism: The Economic Strategy of American Empire (1968 and 2003) and of The Myth of Aid (1971)."
In 2007, Dr. Hudson was Chief Economic Policy Adviser
for the Kucinich for President campaign.
He is now writing a new tax policy for the United States."