* WORLD NEWS
* JANUARY 17, 2011
China's President Lays Groundwork for Obama Talks
Hu Highlights Need for U.S.-China Cooperation, Questions Dollar - WSJ.com
Can anyone say what would happen if the US Dollar loses world reserve status to the Chinese???By ANDREW BROWNE
BEIJINGóChinese President Hu Jintao emphasized the need for cooperation with the U.S. in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a "product of the past" and highlighted moves to turn the yuan into a global currency.
At present, EVERY transaction with OPEC is REQUIRED to be performed in US dollars, at least until the Chinese made a private deal with the Russians to conduct oil trade between their countries in either or both of their respective currencies...
So, what are the implications of the calls for movement against the dollar??
Correct me if I'm wrong, TO ME, this is a statement that the world is losing faith in the american currency, I'd wager partially a result of trillions upon trillions of dollars worth of bailouts...so, the world is losing faith that those paper notes ACTUALLY have any value left... which in turn is going to mean that it will require MORE dollars to get the same value of goods from other nations... that means inflation. But HOW MUCH inflation??