China, Russia Want New Monetary System

The Director of China's Central Bank Xiao Chuan has presented a proposal for the adoption of new international reserve currency, one that would not be under the contral of any one nation, and which would be based on functions such as trade pricing and settlements which could be carried out separately from financing the credit needs and imbalances of any one nation, such as the United States. The proposal, which may be presented at the upcoming G-20 meeting in England, was featured on the Chinese Central Bank's website. This proposal may also be considered the answer to Bernanke's expansion of Fed Reserve credit facilities, and intention to buy $300 billion of US Treasury securities. Bernanke's move reduced the value of China's holding of US securities by 5% because of the fallin value of the dollar.

The Irony Curtain

Vladimir Putin has gone from being Russia's president to being Russia's Dick Cheney. As Prime Minister, he still has all the real power but has shed the accountability that goes with being the head of state. So while Putin is undoubtedly the dastard who decided to put the clobber on Georgia, the guy who has to take criticism for it is Putin's political Pinocchio President Dmitry Medvedev. Being the man in the hot seat sort of makes Medvedev Russia's George W. Bush, except that Bush has never really been held responsible for anything. (Bush is only sixty-something and he's only been on the job for seven and a half years, what do you want?)