China calls for new reserve currency

This is from the Financial Times, do you understand how huge this news is? Russia is calling for the same thing. Who is going to buy the $1 trillion of our debt this year, the Federal Reserve?.......yes..... Be ready for inflation.-Lou

China calls for new reserve currency

China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

In an essay posted on the

People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies .

Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.

“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.

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http://www.ft.com/cms/s/0/7851925a-17a2-11de-8c9d-0000779fd2ac.html