Russia, China to push global currency at G8 summit

[D-Mack]

07.07.09, 10:47 AM EDT
G8-SUMMIT/ (WRAPUP 2, PIX, TV, GRAPHIC):WRAPUP 2-Russia, China to push global currency at G8 summit



* China, Russia, India, Brazil want currency debate

* Anti-G8 protests begin in Rome

* G8 breakthroughs seen on climate, trade

(Adds India on dollar, pope, protest, Berlusconi woes)

By Stephen Brown

ROME, July 7 (Reuters) - China, Russia and Brazil will use this week's G8 summit in Italy to push their view that the world needs to start seeking a new global reserve currency as an alternative to the dollar, officials said on
As leaders of the Group of Eight rich nations and the major developing powers travelled to Italy for a three-day summit starting on Wednesday, it seemed unlikely the currency debate would get a specific mention in summit documents.

But both G8 member Russia and emerging power Brazil -- which like China and India is a member of the "G5" that joins the second day of the summit on Thursday -- echoed China's calls for the currency debate to be taken up by world leaders.

Top Kremlin economic aide Arkady Dvorkovich said China and Russia would "state their stance that the global currency system needs smooth evolutionary development". [ID:nL7157835]

Brazilian President Luiz Inacio "Lula" da Silva said he was keen to explore "the possibility of new trade relations not dependent on the dollar" [ID:nPAB007772] and India has also said it is open to the debate. [ID:nCOL399882]

But G8 members Germany, France and Canada played down talk of the summit including a detailed currency discussion. A source at President Nicolas Sarkozy's office said the G8 was "generally not the forum ... for discussing currency exchange rates".

...



http://www.forbes.com/feeds/reuters/...V-GRAPHIC.html

It seems the calls are getting louder

[D-Mack]

Re: Russia, China to push global currency at G8 summit




geopolitics, military and transparency makes $ No. 1

[Mega]

Re: Russia, China to push global currency at G8 summit

"The British will be the 1st to finish QE"

This F*cking halfwit is going to get a nasty shock.
Mike

[metalman]

Re: Russia, China to push global currency at G8 summit

It seems the calls are getting louder

seems that way if you have suffered a severe memory loss... from drugs or a car accident or have been reading the internets or watching tv...

Asia Needs Deal to Prevent Panic Selling of U.S. Debt, Yu Says

By Kevin Hamlin
Sept. 25 (Bloomberg) -- Japan, China and other holders of U.S. government debt must quickly reach an agreement to prevent panic sales leading to a global financial collapse, said Yu Yongding, a former adviser to the Chinese central bank.
``We are in the same boat, we must cooperate,'' Yu said in an interview in Beijing on Sept. 23. ``If there's no selling in a panicked way, then China willingly can continue to provide our financial support by continuing to hold U.S. assets.''
An agreement is needed so that no nation rushes to sell, ``causing a collapse,'' Yu said. Japan is the biggest owner of U.S. Treasury bills, holding $593 billion, and China is second with $519 billion. Asian countries together hold half of the $2.67 trillion total held by foreign nations.
China, Japan, South Korea and others should meet soon to seal a deal, said Yu, a former academic member of the central bank's monetary policy committee. The talks should involve finance ministers, central bank governors and even national leaders, he said.
``Whether some kind of agreement between them to continue to hold Treasury bills is viable, I'm not sure,'' said James McCormack, head of sovereign ratings at Fitch Ratings Ltd in Hong Kong. ``It would be unusual. If it became apparent that sovereigns in Asia were selling Treasuries the market would take that quite badly, it's something to be avoided.''
The global credit crisis, triggered by a housing slump in the U.S., has saddled financial companies with more than $520 billion in writedowns and losses, collapsing Bear Stearns Cos. and Lehman Brothers Holdings Inc. in the process. Insurer American International Group Inc. and mortgage giants Fannie Mae and Freddie Mac also were rescued by the government.
`Grave Threats'
U.S. Treasury Secretary Henry Paulson is urging Congress to pass a $700 billion plan to remove devalued assets from the banking system. Federal Reserve Chairman Ben S. Bernanke said Sept. 24 that the U.S. is facing ``grave threats'' to its financial stability.
China's huge holdings of U.S. debt means it must bear a large proportion of the ``burden of sorting things out'' in the U.S., Yu said. China is not in a hurry to dump its U.S. holdings and communication between the two nations every ``couple of days'' is keeping Chinese leaders informed and helping to avoid a potential panic, he added.
``China is very worried about the safety of its assets,'' he said. ``If you want China to keep calm, you must ensure China that its assets are safe.''
Currency Manipulator
Yu said China is helping the U.S. ``in a very big way'' and added that it should get something in return. The U.S. should avoid labeling it an unfair trader and a currency manipulator and not politicize other issues, he said.
``It is not fair that we are doing this in good faith and are prepared to bear serious consequences and you are still labeling China this and that, accusing China of this and that,'' he said. ``China knows what to do. We don't need your intervention.''
The U.S. financial crisis had taught China a lesson and that was: ``Why are we piling up these IOUs if they may default?'' China's economic expansion strategy, which emphasizes export growth that has led to trade surpluses and the accumulation of $1.81 trillion in foreign-exchange reserves, is the main problem, said Yu.
``Our export-growth strategy has run its natural course,'' he said. ``We should change course.''
China should stop intervening in the foreign currency markets and thus allow rapid appreciation of the yuan, he said. While this would cause pain for exporters, China could ease the transition by using its strong fiscal position to aid those who lose their jobs. It also should stimulate domestic demand to offset lower income from overseas sales.
Without yuan appreciation, China will continue to accumulate foreign reserves, which means further accumulating ``IOUs from the U.S.,'' said Yu. ``This is paper and it may default and it will not increase China's national welfare.''
If China doesn't allow the yuan to appreciate and continues to promote export-led growth it will lead to confrontation with the U.S. and Europe, Yu said.
To contact the reporters on this story: Kevin Hamlin in Beijing at khamlin@bloomberg.net
Last Updated: September 25, 2008 01:45 EDT

[D-Mack]

Re: Russia, China to push global currency at G8 summit

seems that way if you have suffered a severe memory loss... from drugs or a car accident or have been reading the internets or watching tv...

Asia Needs Deal to Prevent Panic Selling of U.S. Debt, Yu Says

By Kevin Hamlin
Sept. 25 (Bloomberg) -- Japan, China and other holders of U.S. government debt must quickly reach an agreement to prevent panic sales leading to a global financial collapse, said Yu Yongding, a former adviser to the Chinese central bank.
``We are in the same boat, we must cooperate,'' Yu said in an interview in Beijing on Sept. 23. ``If there's no selling in a panicked way, then China willingly can continue to provide our financial support by continuing to hold U.S. assets.''
An agreement is needed so that no nation rushes to sell, ``causing a collapse,'' Yu said. Japan is the biggest owner of U.S. Treasury bills, holding $593 billion, and China is second with $519 billion. Asian countries together hold half of the $2.67 trillion total held by foreign nations.

...

The first part sounds like they want to keep this system alive, I'm not so sure if this is still the case.

[Chomsky]

Re: Russia, China to push global currency at G8 summit

07.07.09, 10:47 AM EDT
G8-SUMMIT/ (WRAPUP 2, PIX, TV, GRAPHIC):WRAPUP 2-Russia, China to push global currency at G8 summit



* China, Russia, India, Brazil want currency debate

* Anti-G8 protests begin in Rome

* G8 breakthroughs seen on climate, trade

(Adds India on dollar, pope, protest, Berlusconi woes)

By Stephen Brown

ROME, July 7 (Reuters) - China, Russia and Brazil will use this week's G8 summit in Italy to push their view that the world needs to start seeking a new global reserve currency as an alternative to the dollar, officials said on
As leaders of the Group of Eight rich nations and the major developing powers travelled to Italy for a three-day summit starting on Wednesday, it seemed unlikely the currency debate would get a specific mention in summit documents.

But both G8 member Russia and emerging power Brazil -- which like China and India is a member of the "G5" that joins the second day of the summit on Thursday -- echoed China's calls for the currency debate to be taken up by world leaders.

Top Kremlin economic aide Arkady Dvorkovich said China and Russia would "state their stance that the global currency system needs smooth evolutionary development". [ID:nL7157835]

Brazilian President Luiz Inacio "Lula" da Silva said he was keen to explore "the possibility of new trade relations not dependent on the dollar" [ID:nPAB007772] and India has also said it is open to the debate. [ID:nCOL399882]

But G8 members Germany, France and Canada played down talk of the summit including a detailed currency discussion. A source at President Nicolas Sarkozy's office said the G8 was "generally not the forum ... for discussing currency exchange rates".

...



http://www.forbes.com/feeds/reuters/...V-GRAPHIC.html

It seems the calls are getting louder

They backed off.

DOLLAR DEBATE PLAYED DOWN

Not mentioning China's push for a sensitive debate about a long-term alternative to the dollar as global reserve currency, the draft talked only of global "imbalances." G8 diplomats had said this might be the only oblique reference to currency.

"Stable and sustainable long-term growth will require a smooth unwinding of the existing imbalances in current accounts," read the draft prepared for the G8 talks.

China complains that dollar domination has exacerbated the global crisis and worries that the bill for U.S. recovery poses an inflation risk for China's dollar assets, an estimated 70 percent of its official currency reserves.

http://news.yahoo.com/s/nm/20090708/bs_nm/us_g8_summit

[Kadriana]

Re: Russia, China to push global currency at G8 summit

Wrong post. Meant to post in gold getting killed thread. :/

[cjppjc]

Re: Russia, China to push global currency at G8 summit

The Chinese say this every day. Every day. They are stuck. It will take a long time to get unstuck. By that time maybe they can be the reserve currency.

[phirang]

Re: Russia, China to push global currency at G8 summit

I think the MSM is touting exactly the opposite of what's really going on, namely that the dollar ISN'T going to collapse: the RMB is.

Why else is China stockpiling commodities it doesn't need? To forestall a FX crisis when it obliterates the RMB.

[FRED]

Re: Russia, China to push global currency at G8 summit

I think the MSM is touting exactly the opposite of what's really going on, namely that the dollar ISN'T going to collapse: the RMB is.

Why else is China stockpiling commodities it doesn't need? To forestall a FX crisis when it obliterates the RMB.

Reserve currencies don't collapse. They are replaced by another dominant currency over time via international political arrangements. The case of the pound sterling is instructive.

[cobben]

Re: Russia, China to push global currency at G8 summit

"Why else is China stockpiling commodities it doesn't need?"

in preparation for war? imho there isn't really any other good reason.

[D-Mack]

Re: Russia, China to push global currency at G8 summit

Brown suffering from memory loss?

Though the dollar was not mentioned in the draft declaration, its future as the world’s reserve currency is likely to remain a topic for debate over the coming months or years, as China, Russia and India have expressed their desire to see long-term changes in the international monetary system.
But they have been careful not to push their desire for change too far. If the dollar falls, the value of their large dollar-denominated assets plummets.
China said its officials raised the issue at a working lunch on Thursday, but British Prime Minister Gordon Brown said he could not recall a discussion about it and that it was not on the formal agenda.

http://www.moscowtimes.ru/article/1009/42/379438.htm

[D-Mack]

Re: Russia, China to push global currency at G8 summit



Russian President Dmitry Medvedev pulls new world currency from his pocket
Russia's President, Dmitry Medvedev, pulled the world's new currency from his pocket at the meeting of G8 leaders in the Italian city of Aquila.

http://www.telegraph.co.uk/finance/c...is-pocket.html


http://pics.livejournal.com/a_kolesn...o/pic/00021ace