Here Comes China

thesaker  |  In 2009, after helping to rescue the US from the GFC, Zhou Xiaochuan, Governor of the Peoples Bank of China, said, “The world needs an international reserve currency that is disconnected from individual nations and able to remain stable in the long run, removing the inherent deficiencies caused by using credit-based national currencies.”

After helping rescue America from the GFC, PBOC Governor Zhou Xiaochuan observed, “The world needs an international reserve currency that is disconnected from individual nations and able to remain stable in the long run, removing the inherent deficiencies caused by using credit-based national currencies.”

Zhou proposed SDRs, Special Drawing Rights, a synthetic reserve currency dynamically revalued against a basket of trading currencies and commodities. Broad, deep, stable, and impossible to manipulate. Nobelists Fred Bergsten, Robert Mundell, and Joseph Stieglitz approved: “The creation of a global currency would restore a needed coherence to the international monetary system, give the IMF a function that would help it to promote stability and be a catalyst for international harmony”.  Here’s what’s happened since:

2012: Beijing began valuing the yuan against a currency/commodity basket

2014: The IMF issued the first SDR loan

2016: The World Bank issued the first SDR bond

2017: Standard Chartered Bank issued the first commercial SDR notes.

2019: All central banks began stating currency reserves in SDRs

Mar. 14, 2022: “In two weeks, China and the Eurasian Economic Union – Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan – will reveal an independent international monetary and financial system. It will be based on a new international currency, calculated from an index of national currencies of the participating countries and international commodity prices”.

The currency resembles Keynes’ invention Special Drawing Rights.SDRs are a  synthetic currency which derives its value from a global, publicly traded basket of currencies and commodities. Immense beyond imaging, and stable as the Pyramids. Everyone gets a seat at the table and a vote. It may eventually be administered by an arm of the UN.

SDRs pose a serious alternative to the US dollar, both for the EAEU, the BRI’s 145 member states, the Shanghai Cooperation Organization (SCO), ASEAN, and the RCEP. Middle East countries, including Egypt, Iran, Iraq, Syria, Lebanon, are keenly interested.

Less well known is that the EAEU, the BRI, the SCO, ASEAN, and the RCEP were discussing a merger before the currency news hit.

It is reasonable to expect them to join this new, cooperatively managed, stable reserve currency regime in which they can settle their trades in stable, neutral, predictable SDRs.

Biological labs

China is not losing any opportunity to bring this front and center.  This is their last list of questions:

• If the concerns are “disinformation”, why doesn’t the U.S. release detailed materials to prove its innocence? – Question by Chinese Foreign Ministry Spokesperson Zhao Lijian on U.S.-funded biolabs in Ukraine.
• What did the U.S. spend the $200 million on? – Question by Chinese Foreign Ministry Spokesperson Zhao Lijian on U.S.-funded biolabs in Ukraine.
• What kind of research has the U.S. conducted on which pathogens? – Question by Chinese Foreign Ministry Spokesperson Zhao Lijian on U.S.-funded biolabs in Ukraine.
• What is it trying to hide when the U.S. Embassy in Ukraine deleted all relevant documents on its website? – Question by Chinese Foreign Ministry Spokesperson Zhao Lijian on U.S.-funded biolabs in Ukraine.
• Why does the U.S. insist on being the only country in the world to oppose the establishment of a multilateral verification mechanism though it claims to abide by the Biological Weapons Convention? – Question by Chinese Foreign Ministry Spokesperson Zhao Lijian on U.S.-funded biolabs in Ukraine.
• This is quite an amazing poster detailing the biolab web, which is too large to load here.  But take a look at the depiction of these US biolabs.  https://www.globaltimes.cn/page/202203/1255055.shtml