In cooperation with China, this week’s Eurasia Economic Forum meeting in Bishkek, Kyrgyzstan, set the parameters for an alternative monetary-financial system, a new global settlement currency pegged to baskets of national currencies and commodities. The introduction of this currency instrument in Eurasia will entail the collapse of the dollar system and the final undermining of the US military and political power. It is necessary to start negotiations on signing an appropriate international treaty within the framework of the SCO*. Read full article →
* The currency is protected by four nuclear powers, members of the Shanghai Cooperative Organization mutual defense pact.
Prelude
After the GFC, back in 2009 Zhou Xiaochuan, Governor of the Peoples Bank of China, PBOC, announced, "The world needs an international reserve currency that is disconnected from individual nations and able to remain stable in the long run, removing the inherent deficiencies caused by using credit-based national currencies.”
US Nobelists C. Fred Bergsten, Robert Mundell, and Joseph Stieglitz were ecstatic, “The creation of a global currency would restore a needed coherence to the international monetary system, give the IMF a function that would help it to promote stability and be a catalyst for international harmony”. They knew that, in 1945, having managed the humiliating the collapse of the British Pound, Keynes warned the US Treasury that supporting an imperial currency will bankrupts you.
Save the Dollar?
Zhou’s bank, the world’s richest, funded the international project and donated a supercomputer. The US was invited to participate and probably did. Tim Geithner was OK with it, which tells you something.
on launch day, Western and Chinese media will treat it as a technicalogicl step forward that reduces economic friction for everyone. Then slowly, in tiny increments, the dollar’s value will change, perhaps so gradually that few people even notice.