(PHOTO CREDIT: GETTY IMAGES)
FROM CNN's Jack Cafferty:
First came Russia - and now China. The Chinese Central Bank wants to dump the dollar as the international reserve currency... and replace it with a new global system controlled by the International Monetary Fund. China says the goal is to create a reserve currency "that is disconnected from individual nations and is able to remain stable in the long run." Translation: Beijing is worried that actions being taken to save America's slumping economy will wind up hurting them.
It's also another sign that the Chinese are becoming increasingly concerned about holding more than $1 trillion of our debt. However, China did make a separate announcement yesterday that it would continue buying U.S. Treasuries. China wants a basket of currencies based on the value of the dollar, yen, euro and sterling. After Russia initially proposed the idea of replacing the dollar - it said China along with other emerging nations were on board. Also, A UN panel of experts is looking at increasing the use of a new international currency.
Most analysts don't think the dollar will be replaced as the world's leading foreign exchange reserve in the near future; but it may be a sign that China is flexing its muscle. The timing is also interesting; just a week before the G20 summit of the world's largest economies in London.
Here’s my question to you: What's the dollar really worth these days?
Interested to know which ones made it on air?
John from Louisiana writes:
Objectively, the world economy shouldn't be pegged to the dollar. But it will continue to be - as long as the U.S. is the dominant international player, that is. If that changes, all bets are off.
With the recent spending proposals, the dollar is now worth much more than it will be 10 years from now.
Randy from Winnipeg writes:
I remember the good old days of the "gold" standard when a dollar was redeemable at face value in pure gold. With the way the global economy has ebbed and flowed in the decades since we moved to paper, it’s time to see a return to hard valued gold. Governments can print all the money they wish but there is only so much gold to go around.
Jack, I'm glad to see that you and Wolf are so optimistic about the dollar. But frankly, I don’t think it’s worth a damn thing.
Barry from Fort Wayne, Indiana writes:
Jack, We will only know the full extent of the value once all the countries holding our debt dump it. I figure it’s really only worth the ink and paper it is printed on. Once our economy rebounds, hyperinflation will more than likely take over because of the irresponsible Congress members spending dollars like Monopoly money – and the lack of regulation by the Fed, which is pumping trillions into the system.
Jack, As long as the drug cartels, pirates, terrorists and other thugs in the world want dollars, they're valuable.
About a buck 23 Canadian. Do you want to trade?
John from Alabama writes:
Jack, Good question! The dollar is worth 2 postage stamps and 16 cents in change. The dollar is worth a small cheeseburger with no drink or fries. The dollar is worth half a gallon of gas. A dollar is worth 20 pieces of bubble gum. The dollar is shrinking.