Fading of the Dollar's Dominance with recommendations

Washington Post, June 24, 2009 page A19:(For details,please read www.Washpost online)

The International Monetary Fund(IMF) is now set to print $300 billion worth of SDR's - 10 times more than currently exist - for distribution to nations around the globe. They will effectively be held as reserve deposits by each nation's central bank.

C. Fred Bersten,Director of the Peterson Institute of International Economics said: "The dollar is going to lose some of its global status. So maybe it's time we just accepted that."

Some, like Bergsten, have argued the SDR's role should be taken a step further, allowing them to serve as a de facto global reserve currency. Bergsten has advocated, for instance, the idea of nations such as China trading in their dollars for SDR's, allowing for an orderly transition away from the greenback without causing a sharp fluctuation in the dollar's market value.

Such recommendation is similar to China's campaign for a new world monetary order, arguing that the financial crisis has exposed profound vulnerabilities in the US economy and financial system. Moreover, China has taken steps to increase the international role of the yuan i.e. RMB to a level commensurate with China's relatively new status as a major economic power.

The Productivity Revolution Trickles into Government: (Photo of Energy Secretary Steven Chu hired a management consultant to speed renewable energy loan guarantees to companies.)

I agree in toto as a former economist with US Department of Labor and published "Keys for Economic Understanding" to advocate the productivity revolution via education and training with "Work and Study Cycle" to be validated and implemented in USA or China. www.ask.com for reference. Both USA and China have common problems to be solved via human talents.

Francis Shieh a.k.a. Xie Shihao, a lifelong octogenarian student trying to promote lifelong education and training of folks with marketable skills to have jobs and to pay tax to boost revenue of US government during the current high rate of unemployment resulted from global financial crisis.

Energy officials concede that there were plenty of skeptics and naysayers, but most became enthusiastic converts to the new process. These days, it is not unusual to find members of the team working nights and weekends to meet Chu's ambitious deadlines. Query: Influence of Confucianism by virtue of Chu's ethnic background of Confucian influence for a good government in the United States with hard-working dedicated folks? I sent my previous blogs on Confucianism to be compared to "Wealth of Nations" by Adam Smith, a renowned professor of moral philosophy and economics.

Wednesday, June 24, 2009 at 10 a.m. to share my thoughts with readers online.