China challenges US global financial leadership

[onehandle]

Source: Washington Post

SHANGHAI -- The only major economy still growing at a fast clip, China is being unusually forthright in challenging the U.S.-led global order ahead of an April 2 summit on the financial crisis. In his second rebuke of U.S. leadership this past week, the central bank governor, Zhou Xiaochuan, said China's rapid response to the downturn _ including a 4 trillion yuan ($586 billion) stimulus package _ proved the superiority of its authoritarian, one-party political system.

"Facts speak volumes, and demonstrate that compared with other major economies, the Chinese government has taken prompt, decisive and effective policy measures, demonstrating its superior system advantage when it comes to making vital policy decisions," Zhou said in remarks posted on the People's Bank of China's Web site.

In the approach to the London summit of 20 leading economies, Zhou called on foreign governments to give their finance ministers and central bankers broad authority so that they can "act boldly and expeditiously without having to go through a lengthy or even painful approval process."

China has made its agenda clear: It wants a stable U.S. dollar, and has even advocated the creation of another global currency altogether. It is leery of protectionism. And it is demanding a larger say in how financial systems are regulated and rescued, while holding back on any promises for new rescue or stimulus measures of its own.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/03/28/AR2009032800824.html

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It's only a matter of time. Two or three decades if you ask me.

China will take it all.

[galileoreloaded]

1. Much, much sooner IMO.

With their (China's) deal with Argentina and the central bank purchases way, WAY off, they are forcing the FED to print.

http://blogs.cfr.org/setser/2009/03/31/foreign-central-banks-arent-going-to-finance-the-us-fiscal-deficit-their-reserves-arent-growing-the-q4-2008-cofer-data/

Brad Setzer is the China/Balance of Trade Guru, IMO(and others) and this is worth a read.

As far as I can tell, the Federal Gov. is losing it's ability to fund daily operations, with more and more cash (read: tax revenue) required for debt service. Then they borrow more, and a larger percentage goes to debt service.

If they cant borrow, they print, which exacerbates the issue on an exponential scale.

As the states are becoming more dependant on Fed dollars to shore them up, the revenue stream is becoming consolidated straight up, and that is dangerous, because the diverse ability to generate revenue (taxes) from different regions and localities is what guarantees not all the eggs get put in one basket.

Pretty interesting stuff, if you ask me.

[ohio2007]

2. Will Barack cow tow causing a Wall street crash ?

Anything said over there will be a heavy influence over here

[ohio2007]

7. ? ....didn't see this comming

but it looks as though

http://www.youtube.com/watch?v=9WlqW6UCeaY

Wall street has taken a turn up.

[Vidar]

3. They can't do much worse with it than we have.

[madrchsod]

4. if we devalue the dollar china is shit up the crick

[nyy1998]

5. Agreed, China needs to stop trying to anatagonize the US

A global currency? Because the Euro is really doing wonders for the Europeans, especially right now :sarcasm:

[mbperrin]

6. Unless they take the dollars and spend them directly here, buying real assets.

They're holding dollars, and the only way to avoid devaluation is to spend them here. I fully expect that to happen once local prices fall low enough.

When everything's on sale, those with dollars will benefit. John D. Rockefeller knew it, and these so-called dang Commies apparently do, too.

[Sultana]

8. Bring it on!

:nuke: