After an unsatisfying blow from our current economy's financial crisis, China tends to step in and fluctuate the flow of the worlds currency rate. And even though China had established meetings in the past for the preparation of the industrial and developing improvement, many nations had criticized them, but this time China meant it. China believes that the economy was been under the influence and control by many of the rich nations such as the US themselves. Even Russia had underwent an attempt similar to China's proposal. Both countries seem to agree and are looking foward to this plan. While the US is concern and has doubt in disapproval with their ideals. And because of this even the Premier Wen Jiabao expresses " 'worries' over China's significant holdings of U.S. government bonds" due to their current situation, which is with all the countries in having the shutting down of many corporations and factories, along with an increase of un-employment rate.
4 comments:
See, now this is the problem with having too much foreign debt. I have never really understood why we can't have a balanced budget, and why we have to borrow SO much money from foreign nations. I understand the general idea that debt is good that Hamilton espoused, but at the same time I feel we have taken it too far. Now we are seeing the effects of relying too much on other countries for our monetary supply, they get to control it. Now another country is going to be regulating the flow of currency without any input from us. While I apreciate the sentiment, and I do want the economy to right itself, I would feel much safer if our government played a roll in this. So with any luck this will teach us in the future to be smarter about our money, but I'm not optimistic.
Personally I think what China is going at seems like a decent idea. A global Currency not specifically dependent on any one nation seems like a good way to keep our global economy under control. I'm also not surprised that China would want this, seeing as they are a rapidly growing country/economic power... But all in all, with the dollar being so important(?) it might be a good idea to set up a sort of "global currency"
Lauren C. Strojny~ The idea of a global currency is great, and I believe it is in the worlds best interest to eventually go through with this idea. At the current state of the world though I dont think its do-able. The US as well as many other nations including most of Europe are all in extreme dept due to helping in wars, giving citizens benefits, and trying to keep economies afloat etc. How does china and Russia expect to deveope a currency that all these nations can use? Best of luck to them, its an idea that has been around for awhile, but has not been put to use, and they cant do it alone so they better expect other nations involvemnt. The future will only tell if the idea can become current.
I like this idea that China has and i think it will reduce the amount of poverty and corruption within those big firms and spread out the budget evenly. Too bad we didnt think of something like this earlier so we wouldnt have to be in a mess like this. This could be possible once all of the war debts have been paid but so far its looking like we cant even take this thought into concideration untill everything in the economy as settled down.
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