Well, China has come right out and said it; they want to end the US Dollar as a significant currency. Central Bank Governor Zhou Xiaochuan (JOE SHEEOW Chwan) says China wants an international reserve currency based on fixed commodity prices. He cites John Maynard Keynes who advised FDR on economics as the model for this and thinks it unfortunate that Keynes’s advice was not followed in the 1940’s.
I think I like the way Mr. Zhou thinks; except for that "slight" tendency for fascism that his government displays. Mr. Zhou was so feared in his former job; cracking down on corporate corruption; that he was know as Joe the Flayer.
This means bad news for Fat Cat Republicans who have been maintaining the family fortune by shifting paper around. They may have to get real jobs actually doing something useful, of course Republicans would prefer to eliminate the American Middle Class and return to the plantation system.
For the short term; China is in no position to force the change. If Obama fails in his efforts to save the US economy and he can only do this by embracing Keyensian economics; it will be China who steps up with this plan for a new World economy. A currency fixed to commodities appeals to any country who is holding a lot of dollars. Dollars that have been steadily losing their value.
An ounce of gold would buy a good man’s suit 250 years ago, a hundred years ago, 50 years ago and it will now. The world economy is too big to run on gold but could be easily stabilized by tying it to a basket of 30 commodities as Keynes wanted to do. Imagine a World with no inflation, no AIG, no Republicans. I hope we don’t have to learn to speak Chinese to achieve this.