american flag

Remember when I posted last week about how the myopic budget battles between the Party of No Brains and the Party of No Guts miss the bigger picture of other nations looking at our internal beef and beginning to question America’s status as the owner of the world’s reserve currency? After all, why should any country base its trade on a currency that belongs to a nation rife with political instability?

Liu Chang of China’s Xinhua news agency screamed the same theme yesterday:

As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world.

Placed another way: “Don’t you think it’s time to pull the plug on this American Empire?”

Chang moves closer to the point when he lays out his recommendations for reform (emphasis mine):

What may also be included as a key part of an effective reform is the introduction of a new international reserve currency that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.

He also took a few shots at the US before he discussed the recommendations. For example:

Under what is known as the Pax-Americana, we fail to see a world where the United States is helping to defuse violence and conflicts, reduce poor and displaced population, and bring about real, lasting peace.

Sure, you can easily point to China’s dirty laundry, but doing so would also miss the bigger picture: today’s American party wars haven’t done anything to advance this country. And this game is over, should the US Dollar ever lose its reserve status.

And living through the dismantling of an empire will be ugly…

song currently stuck in my head: “backed up against the wall” – 3 pieces


This entry was posted in Economics, Politics and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s