A few days ago , i wrote a diary about Russia and other countries quietly pushing for a new currency to push the dollar out of the way.
While Russia attention is purely based on hatred of the United States , i do feel other countries are extremely worried about the huge debt + the fact that Obama is expected to double down on spending which would increase our account deficit and national debt.
My concern was that if other countries feels that Obama has no intention of eventually taking care of this debt or just show signs that he will tackle this problem , then the march toward a new currency will "only accelerate" and this would really hurt our economy for a long time.
Now , China is firing at us by letting it be known that they also wants a new currency.
BEIJING -- China called for the creation of a new currency to eventually replace the dollar as the world's standard, proposing a sweeping overhaul of global finance that reflects developing nations' growing unhappiness with the U.S. role in the world economy.
The unusual proposal, made by central bank governor Zhou Xiaochuan in an essay released Monday in Beijing, is part of China's increasingly assertive approach to shaping the global response to the financial crisis.
If this doesn't wake you up , then i don't know what will do that.
While the Chinese have never been "friends" to us , their hatred for us is nothing compare to the Russian who have deep hatred for the U.S and actually want our economy to collapse just like the USSR.
China does have a business relationship with us , so unlike the Russian , they would eventually lose a lot if our downfall was to occur.
So Chinese concern should be taken very seriously and the fact that they are jumping on the Russian's bandwagon has got to worry us a bit because they have more clout then Russia.
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My opinion to the Obama team is to plan for an exit strategy if they are indeed planning on doubling down on spending.
The reason why i do not support Obama's budget is because it is very expensive with no exit strategy to bring down the deficit to a level that is desireable.
It is easy to spend , but never easy to cut down on spending , so until Obama draws up an exit strategy out of the spending and a way to bring down the Chinese concern , i just can't back such a budget.
The budget also keeps drilling for oil and nuclear power plant , off the table...Those 2 energy source could be use as revenue source to help keep the deficit down , but Obama is not using it.
Anyway , just wanted to put this out there.
The Chinese are definatly trying to send us a huge signal and warning us that they aren't happy with the fact that we have ignore the deficit.