Is the post dollar era coming ?

First edition of ‘The Currency War’ have primarily criticized the system of Dollar and claimed it to be unstable to be used as reserve currency. In addition, second edition illustrates and elaborate the mechanism of the currency (dollar) and analyzed the causes of financial crisis 2008-9 in structural manner and anticipated how this crisis would end under the influence of conspiracy theory based point of view. Author, Soon Hong Bin- he is one of prominent economists in China; His main argument was made on whether dollar would be still stable reserve currency and also outlined pessimistic outlook on global economy. He also has somewhat forecasted that this global economic recession will take place by emphasizing the fundamental problems of volatile derivative market whether it has been used to hedge the level of risk or intentionally taken the position to make speculative profits.  

Author’s view on dollar as global currency; dollar is not functioning properly with right intention and dollar is increasingly being manipulated by invisible powers. He urges the global economy will soon need an alternative key and also expressed his sincere concern if dollar loses control completely. On contrary, many economists collectively do not agree Yuan as the next global currency as this is one of the wish list for China, not really in favor of global economy. There are so many unstable variables embedded in Yuan if this currency is considered to be key global currency. Author also brings the spotlight to Yuan being the key currency for global trade (goods/services) and looks at the possibilities. 

Having seen recent global economic recession and European Sovereign debt crisis, I personally think that it would be the case for the global economy to seek for an alternative ‘post-dollar currency’. This review of ‘The Currency War’ highlighted some key events such as this current economic recession would persist until 2024 which author find this current economic meltdown will have almost similar impact as The Great Depression 1930. He gave an assumption that new post dollar currency will be based on gold and certified emission reduction and he strongly encouraged Chinese nationals to have a great understanding on how the Western countries have been developing during last three decades instead of being ignorant. Roosevelt once said ‘There is no such coincidence’ on every event that take place. It is meticulously planned and executed’.

There are too much information everywhere that due diligence is sometimes required to identify the quality of the information. Our impulsive and unethical behaviors in generating profit and use the policies to make the life easy and favorable for 1% caused this crisis rather than blaming on people who could payback their loans. Also, perspective of The Currency Book is pessimistic on the US economy. Yet, this alternative key currency in post-dollar era; that must be something we should all be keen to study about although I have no doubt that dollar would still remain strong as the global currency.

Further Reading
http://competitiveintelligencejournal.blogspot.com/2008/08/currency-wars.html