Submitted by tom on
There is an interesting op-ed in China Daily that discusses and questions the U.S. dollar's status as the reserve currency of the world's financial system.
The author is EVP of the "China Center for International Economic Exchanges.
The author explains how the dollar depreciation that has occurred (97.2 percent against gold) since the collapse of the Bretton Woods system in the early 1970s "slowly steals the wealth of owners with dollar-denominated assets," and that "the recent financial crisis made some dollar-denominated securities vanish instantly."
With respect to the recent financial crisis, the author also states that:
"The root cause of this crisis was the US' long-term abuse of sovereign credit, the misuse of its status as a global major reserve currency issuing country and the promotion of twin deficits in its current account and the fiscal budget. The situation was further aggravated by the maintenance of US citizens' excessive consumption and the US government's over spending."
Source: China Daily
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