Earlier this week, the leading newspaper in Indonesia questioned on its front page, the legitimacy of the U.S. remaining a superpower when President Obama failed to attend the Asia Pacific Economic Cooperation summit in Bali. And on Oct. 14, as rioters began tearing down barricades in our nation's capital, China's government owned news agency increased the tensions by calling for an immediate change to the reserve currency, and the establishment of a new world order.
Op-ed by writer Liu Chang on Oct. 13 decried in an article on China's official press agency, Xinhua, that "US fiscal failure which warrants a de-Americanized world" and flatly states that the world should consider a new reserve currency "that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States."
Fiscal impasse in the U.S. is a good time for “befuddled world” to start considering building a “de-Americanized world” - Xinhua via Zerohedge
This is not the first time that China has called for an end to dollar hegemony this year, and in fact, publicly called for a new Bretton Woods conference back in early August. Added to this call for change is a speech given in September by one of the leading industrialists in Canada who openly stated that 'the dollar is about to be dethroned as the world's de facto currency."
After President Obama's failure in the Syrian conflict, and his ongoing lack of leadership in the current budget and debt ceiling crises, foreign nations like China are seeing now as a great opportunity to turn the world against the 'diminishing superpower', and lead the way towards the creation of a new order and reserve currency. The fact that China is and has been accumulating physical gold reserves at a time when Western governments are selling theirs in large quantities, shows that the second largest economy is readily prepared to take over the reigns of control in the monetary spectrum the moment the U.S. opens that door.
Starting in September of last year, and accelerating their political, financial, and diplomatic power for change into 2013, China is boldly stating to the world that they are nearly ready to lead the global economy into a new era in the 21st century. And with many nations outside the West, including some in the European Union, creating many new partnerships and economic trade agreements with China using their currencies instead of the dollar, the ongoing crises involving a government shutdown and the raising of our debt ceiling, is having global ramifications the government may not recover from.