[J. Abizeid]

The writing on the wall,
It’s a fascinating game:
The US wants its currency devalued in order to get out of its recession / depression trading it with inflation.
Devaluing the dollar is China’s nightmare since it’s the US largest debtor. In other words, China will lose the most when the US pays it back with smaller dollars. So does every dollar holder.
The US is taking advantage of the Chinese dilemma by printing more dollars and forcing the Chinese to continually bailing the dollar out.
The problem, it’s getting heavy on the Chinese and they started cracking. They like to see other currencies help bail out the dollar through the SDR system. The SDR is the least of two evils for the dollar; instead of bursting and collapsing on its own, the other currencies will come to the rescue; in return, the dollar will have to give up its status as the World Reserve Currency. Either way, the pressure built up on the dollar because of excessive printing started to show cracks and when the dam breaks the tsunami won’t give much notice.


http://finance.yahoo.com/banking-budgeting/article/106817/Dollar-Slams-Up-Against-a-Great-Wall?sec=topStories&pos=4&asset=TBD&ccode=TBD

http://www.marketwatch.com/news/story/Global-reserve-currency-debate-unlikely/story.aspx?guid=%7B0E74D1C5%2D7E9F%2D4040%2DA5F3%2 D57F48ACCC070%7D&dist=hplatest

http://finance.yahoo.com/news/China-challenges-US-global-apf-14774658.html

China has made its agenda clear: It wants a stable U.S. dollar, and has even advocated the creation of another global currency altogether. It is leery of protectionism. And it is demanding a larger say in how financial systems are regulated and rescued, while holding back on any promises for new rescue or stimulus measures of its own.
Fearful of any moves that might weaken the dollar and imperil China's estimated $1 trillion in Treasuries and other U.S. government debt, Chinese Premier Wen Jiabao has urged the United States to remain "a credible nation." In other words, Beijing wants Washington to avoid spurring inflation with excessive government spending on bailouts and stimulus packages.
To keep the value of its own currency steady -- some say undervalued -- the Chinese government must recycle its huge trade surpluses. The biggest, most liquid option is U.S. Treasuries. But a weakening dollar saps the value of those investments.
The Chinese "are being hurt more than anyone else by the mismanagement of the dollar," said William Overholt, an expert with Harvard University's Kennedy School of Government.
Underscoring that grievance, earlier this week Zhou, the central bank governor, called for a new global currency to end the dollar's dominance in trade, foreign reserves and commodity pricing.
Echoing proposals that have been debated for years, he urged the International Monetary Fund to create a "reserve currency" based on shares in the organization held by its 185 member nations, known as special drawing rights, or SDRs.
"Nobody believes the current global monetary system will be changed soon. It's more like a warning or signal to America to let them know how important it is to keep the dollar stable," said Ding Xinghao, president of the Shanghai Association of American Studies, a private academic think-tank.
China's stolid and somber president, Hu Jintao, will likely focus on cooperation rather than table pounding when he meets President Barack Obama for the first time at next week's London summit on the financial crisis.