china, argentina to trade in chinese currency , page-10

BH

Hmmm are you doing a de Silva on us?

So you are saying that China's motives are different from the Latin Americans? That China is in someway "less hostile"?

I disagree.

Interpreting the Latin American leaders' actions with regards to trading as simply and only anti US sentiment is foolhardy. The decisions being made make sound economic sense. BTW de Silva did state that he believes the Russian proposal on IMF SDRs should be given consideration at the G20 summit. That leaves "I" in BRIC to comment.

Recall too that the Chinese statement was made by the Governor of the PBOC and not their Head of State.

Anyone think this indicates that the US is proposing that the IMF conduct some QE of their own re the Truman proposal?

http://www.nytimes.com/2009/03/30/world/30fund.html?hp

Excerpt:

The United States will address China’s status this week, when it announces details of a new high-level strategic and economic dialogue with Beijing, led by Mr. Geithner and Secretary of State Hillary Rodham Clinton, according to a senior administration official, who spoke anonymously because the information was not yet public. The announcement will come after the first meeting between President Obama and the Chinese president, Hu Jintao, in London.

The Obama administration has personal reasons to support the fund. Mr. Geithner was the I.M.F. director of policy planning from 2001 to 2003, after his first stint in the Treasury Department. He recruited Edwin M. Truman, another former Treasury official and a longtime advocate of the fund, as a temporary adviser to develop policies for the Group of 20 meeting.

Just before leaving his academic position at the Peterson Institute for International Economics, Mr. Truman proposed that the fund issue $250 billion in S.D.R.’s on a one-time basis to be allocated to all its members, as another way of increasing its resources. Western European countries, he said, could use their S.D.R.’s to lend money to their troubled Eastern neighbors.

That proposal is in a current draft of the statement to be issued at the Group of 20 meeting. If all the American proposals for the fund are adopted, its resources will approach $1 trillion — a bignumber, even in these extraordinary times.

Yet for Mr. Johnson of M.I.T., it merely shows how difficult it is for the United States to marshal support for anything else.

“They can’t agree on fiscal policy; they can’t agree on regulations,” he said. “The only thing left is the I.M.F.”
More Articles in World » A version of this article appeared in print on March 30, 2009, on page A15 of the New York edition.