Thursday, March 26, 2009


So have you heard this stuff about the Chinese wanting a non-dollar global currency, and Michele Bachmann freaking out about it &c &c?

I have a really hard time believing this will actually happen. Here're the things:

  • China is holding lots and lots and lots of dollars at the moment

  • The Euro already exists

  • So that means they would have to start this new currency using non-Euro countries that also didn't want to move to the dollar. Then, they would have to sell off their dollars. The best part is that IF their new currency takes off, they'll take significant losses on the sale of their dollars (cause who would buy them instead of the new fabulous China-backed currency?), which would actually weaken their new currency. Plus most of the countries who would sign on would be either a)poor or b)run by crazy people (or both).

    Sooo, basically, calm down, Michele Bachmann, is what I'm saying.

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