Executive Intelligence Review


China, Russia, Others Discuss Possible New Global Crash, Move To Trade in National Currencies

Sept. 15, 2018 (EIRNS)—A Sept. 14 op-ed in China Daily by Zhang Monan, a senior fellow and professor at China Center for International Economic Exchanges, argues that the “structural problems” that led to the 2008 global financial crisis have not been eliminated, and that as a result the world is “moving toward a multi-currency system.” He takes note of the fact that

“the Bretton Woods system itself collapsed after the U.S. terminated convertibility of the dollar to gold in 1971, ushering in the era of free-floating currencies and making the dollar a reserve currency.... [Now] there is also widespread concern that the United States might use the reserve currency status of the dollar to impose new sanctions on some countries.”

A Business article on Sept. 13 in Global Times also sounds the alarm about a potential new financial crisis. Rising debt in the West is

“fueling fears of a new crisis that could plunge the world economy into recession once again.... Any external factors, including a dollar crisis, are likely to be a turning point for the markets. The U.S. financial system poses one of the biggest risks to global financial stability, and emerging economies should remain vigilant.... The risk of a global recession is real, and countries need to take immediate action to strengthen their defenses,”

writes Hu Weijia.

Both articles point to a very real problem that is clearly under discussion at the highest levels of China, Russia and other countries, but neither article presents anything resembling an actual global solution—specifically Lyndon LaRouche’s detailed proposal for a New Bretton Woods bankruptcy reorganization of the current system—limiting themselves instead to reporting on the various defensive policies (such as trading in national currencies) that are under consideration.