Geithner urges wider IMF forex basket, but no yuan

[ASusilovic]

LOS ANGELES (MarketWatch) — Treasury Secretary Tim Geithner said in an address Thursday in China that the U.S. supports adding more currencies to the International Monetary Fund’s accounting system, a position previously advanced by Beijing.

http://www.marketwatch.com/story/geithner-calls-for-widening-imf-currency-basket-2011-03-30

The more compelling question is why anybody in the IMF should accept US Dollar "toilet paper" ?

 

[Lawrence Chan]

Because ... they are still the only superpower, for now.

Think of a Mafia boss walked into a little coffee shop and enjoyed a coffee there. Now he says to the owner, "I found your coffee is very good. You work for me now."

The coffee shop owner loses his shop at this moment, and his freedom or life - no matter what he chooses to do.

It took USSR 30+ years to crumble yet maintained its "strongman" presence over that period of time.

It will be much harder for US to crumble the same way because there is no one else challenging its superpower status, yet.