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Sunday, April 23, 2017

More than fifteen people were killed near the police station in Yerpedu, Andhra Pradesh, India after a heavily loaded truck lost control on Friday afternoon at about 1:45 P.M. IST (0815 UTC).

People, mostly from the village of Munagalapalem, were gathered to protest local illegal sand mining. The truck hit an electric pole, and destroyed nearby shops and vehicles causing a short-circuit and fire. Tirupati Urban Superintendent of Police R Jayalakshmi said the truck crushed some people under its wheels; six people were killed that way according to Renigunta deputy superintendent KS Nanjndappa. Other people died due to the short circuit and the fire. More than fifteen people were injured including the police station’s chief inspector and the sub-inspector. Reportedly at least ten were in a critical condition.

The driver fled after the accident. Victims were taken to hospitals in Tirupati, and Chennai and Vellore in Tamil Nadu. N Chandrababu Naidu, Andhra’s Chief Minister, said via Twitter, “State Cabinet has announced a compensation of Rs 5 lakh [0.5 million] to the families of the deceased.”

Wikinews accredited reporter Killing Vector traveled to the G-20 2009 summit protests in London with a group of protesters. This is his personal account.

Friday, April 3, 2009

London – “Protest”, says Ross Saunders, “is basically theatre”.

It’s seven a.m. and I’m on a mini-bus heading east on the M4 motorway from Cardiff toward London. I’m riding with seventeen members of the Cardiff Socialist Party, of which Saunders is branch secretary for the Cardiff West branch; they’re going to participate in a march that’s part of the protests against the G-20 meeting.

Before we boarded the minibus Saunders made a speech outlining the reasons for the march. He said they were “fighting for jobs for young people, fighting for free education, fighting for our share of the wealth, which we create.” His anger is directed at the government’s response to the economic downturn: “Now that the recession is underway, they’ve been trying to shoulder more of the burden onto the people, and onto the young people…they’re expecting us to pay for it.” He compared the protest to the Jarrow March and to the miners’ strikes which were hugely influential in the history of the British labour movement. The people assembled, though, aren’t miners or industrial workers — they’re university students or recent graduates, and the march they’re going to participate in is the Youth Fight For Jobs.

The Socialist Party was formerly part of the Labour Party, which has ruled the United Kingdom since 1997 and remains a member of the Socialist International. On the bus, Saunders and some of his cohorts — they occasionally, especially the older members, address each other as “comrade” — explains their view on how the split with Labour came about. As the Third Way became the dominant voice in the Labour Party, culminating with the replacement of Neil Kinnock with Tony Blair as party leader, the Socialist cadre became increasingly disaffected. “There used to be democratic structures, political meetings” within the party, they say. The branch meetings still exist but “now, they passed a resolution calling for renationalisation of the railways, and they [the party leadership] just ignored it.” They claim that the disaffection with New Labour has caused the party to lose “half its membership” and that people are seeking alternatives. Since the economic crisis began, Cardiff West’s membership has doubled, to 25 members, and the RMT has organized itself as a political movement running candidates in the 2009 EU Parliament election. The right-wing British National Party or BNP is making gains as well, though.

Talk on the bus is mostly political and the news of yesterday’s violence at the G-20 demonstrations, where a bank was stormed by protesters and 87 were arrested, is thick in the air. One member comments on the invasion of a RBS building in which phone lines were cut and furniture was destroyed: “It’s not very constructive but it does make you smile.” Another, reading about developments at the conference which have set France and Germany opposing the UK and the United States, says sardonically, “we’re going to stop all the squabbles — they’re going to unite against us. That’s what happens.” She recounts how, in her native Sweden during the Second World War, a national unity government was formed among all major parties, and Swedish communists were interned in camps, while Nazi-leaning parties were left unmolested.

In London around 11am the march assembles on Camberwell Green. About 250 people are here, from many parts of Britain; I meet marchers from Newcastle, Manchester, Leicester, and especially organized-labor stronghold Sheffield. The sky is grey but the atmosphere is convivial; five members of London’s Metropolitan Police are present, and they’re all smiling. Most marchers are young, some as young as high school age, but a few are older; some teachers, including members of the Lewisham and Sheffield chapters of the National Union of Teachers, are carrying banners in support of their students.

Stewards hand out sheets of paper with the words to call-and-response chants on them. Some are youth-oriented and education-oriented, like the jaunty “Gordon Brown‘s a Tory/He wears a Tory hat/And when he saw our uni fees/He said ‘I’ll double that!'” (sung to the tune of the Lonnie Donegan song “My Old Man’s a Dustman“); but many are standbys of organized labour, including the infamous “workers of the world, unite!“. It also outlines the goals of the protest, as “demands”: “The right to a decent job for all, with a living wage of at least £8 and hour. No to cheap labour apprenticeships! for all apprenticeships to pay at least the minimum wage, with a job guaranteed at the end. No to university fees. support the campaign to defeat fees.” Another steward with a megaphone and a bright red t-shirt talks the assembled protesters through the basics of call-and-response chanting.

Finally the march gets underway, traveling through the London boroughs of Camberwell and Southwark. Along the route of the march more police follow along, escorting and guiding the march and watching it carefully, while a police van with flashing lights clears the route in front of it. On the surface the atmosphere is enthusiastic, but everyone freezes for a second as a siren is heard behind them; it turns out to be a passing ambulance.

Crossing Southwark Bridge, the march enters the City of London, the comparably small but dense area containing London’s financial and economic heart. Although one recipient of the protesters’ anger is the Bank of England, the march does not stop in the City, only passing through the streets by the London Exchange. Tourists on buses and businessmen in pinstripe suits record snippets of the march on their mobile phones as it passes them; as it goes past a branch of HSBC the employees gather at the glass store front and watch nervously. The time in the City is brief; rather than continue into the very centre of London the march turns east and, passing the Tower of London, proceeds into the poor, largely immigrant neighbourhoods of the Tower Hamlets.

The sun has come out, and the spirits of the protesters have remained high. But few people, only occasional faces at windows in the blocks of apartments, are here to see the march and it is in Wapping High Street that I hear my first complaint from the marchers. Peter, a steward, complains that the police have taken the march off its original route and onto back streets where “there’s nobody to protest to”. I ask how he feels about the possibility of violence, noting the incidents the day before, and he replies that it was “justified aggression”. “We don’t condone it but people have only got certain limitations.”

A policeman I ask is very polite but noncommittal about the change in route. “The students are getting the message out”, he says, so there’s no problem. “Everyone’s very well behaved” in his assessment and the atmosphere is “very positive”. Another protestor, a sign-carrying university student from Sheffield, half-heartedly returns the compliment: today, she says, “the police have been surprisingly unridiculous.”

The march pauses just before it enters Cable Street. Here, in 1936, was the site of the Battle of Cable Street, and the march leader, addressing the protesters through her megaphone, marks the moment. She draws a parallel between the British Union of Fascists of the 1930s and the much smaller BNP today, and as the protesters follow the East London street their chant becomes “The BNP tell racist lies/We fight back and organise!”

In Victoria Park — “The People’s Park” as it was sometimes known — the march stops for lunch. The trade unions of East London have organized and paid for a lunch of hamburgers, hot dogs, french fries and tea, and, picnic-style, the marchers enjoy their meals as organized labor veterans give brief speeches about industrial actions from a small raised platform.

During the rally I have the opportunity to speak with Neil Cafferky, a Galway-born Londoner and the London organizer of the Youth Fight For Jobs march. I ask him first about why, despite being surrounded by red banners and quotes from Karl Marx, I haven’t once heard the word “communism” used all day. He explains that, while he considers himself a Marxist and a Trotskyist, the word communism has negative connotations that would “act as a barrier” to getting people involved: the Socialist Party wants to avoid the discussion of its position on the USSR and disassociate itself from Stalinism. What the Socialists favor, he says, is “democratic planned production” with “the working class, the youths brought into the heart of decision making.”

On the subject of the police’s re-routing of the march, he says the new route is actually the synthesis of two proposals. Originally the march was to have gone from Camberwell Green to the Houses of Parliament, then across the sites of the 2012 Olympics and finally to the ExCel Centre. The police, meanwhile, wanted there to be no march at all.

The Metropolitan Police had argued that, with only 650 trained traffic officers on the force and most of those providing security at the ExCel Centre itself, there simply wasn’t the manpower available to close main streets, so a route along back streets was necessary if the march was to go ahead at all. Cafferky is sceptical of the police explanation. “It’s all very well having concern for health and safety,” he responds. “Our concern is using planning to block protest.”

He accuses the police and the government of having used legal, bureaucratic and even violent means to block protests. Talking about marches having to defend themselves, he says “if the police set out with the intention of assaulting marches then violence is unavoidable.” He says the police have been known to insert “provocateurs” into marches, which have to be isolated. He also asserts the right of marches to defend themselves when attacked, although this “must be done in a disciplined manner”.

He says he wasn’t present at yesterday’s demonstrations and so can’t comment on the accusations of violence against police. But, he says, there is often provocative behavior on both sides. Rather than reject violence outright, Cafferky argues that there needs to be “clear political understanding of the role of violence” and calls it “counter-productive”.

Demonstration overall, though, he says, is always a useful tool, although “a demonstration is always a means to an end” rather than an end in itself. He mentions other ongoing industrial actions such as the occupation of the Visteon plant in Enfield; 200 fired workers at the factory have been occupying the plant since April 1, and states the solidarity between the youth marchers and the industrial workers.

I also speak briefly with members of the International Bolshevik Tendency, a small group of left-wing activists who have brought some signs to the rally. The Bolsheviks say that, like the Socialists, they’re Trotskyists, but have differences with them on the idea of organization; the International Bolshevik Tendency believes that control of the party representing the working class should be less democratic and instead be in the hands of a team of experts in history and politics. Relations between the two groups are “chilly”, says one.

At 2:30 the march resumes. Rather than proceeding to the ExCel Centre itself, though, it makes its way to a station of London’s Docklands Light Railway; on the way, several of East London’s school-aged youths join the march, and on reaching Canning Town the group is some 300 strong. Proceeding on foot through the borough, the Youth Fight For Jobs reaches the protest site outside the G-20 meeting.

It’s impossible to legally get too close to the conference itself. Police are guarding every approach, and have formed a double cordon between the protest area and the route that motorcades take into and out of the conference venue. Most are un-armed, in the tradition of London police; only a few even carry truncheons. Closer to the building, though, a few machine gun-armed riot police are present, standing out sharply in their black uniforms against the high-visibility yellow vests of the Metropolitan Police. The G-20 conference itself, which started a few hours before the march began, is already winding down, and about a thousand protesters are present.

I see three large groups: the Youth Fight For Jobs avoids going into the center of the protest area, instead staying in their own group at the admonition of the stewards and listening to a series of guest speakers who tell them about current industrial actions and the organization of the Youth Fight’s upcoming rally at UCL. A second group carries the Ogaden National Liberation Front‘s flag and is campaigning for recognition of an autonomous homeland in eastern Ethiopia. Others protesting the Ethiopian government make up the third group; waving old Ethiopian flags, including the Lion of Judah standard of emperor Haile Selassie, they demand that foreign aid to Ethiopia be tied to democratization in that country: “No recovery without democracy”.

A set of abandoned signs tied to bollards indicate that the CND has been here, but has already gone home; they were demanding the abandonment of nuclear weapons. But apart from a handful of individuals with handmade, cardboard signs I see no groups addressing the G-20 meeting itself, other than the Youth Fight For Jobs’ slogans concerning the bailout. But when a motorcade passes, catcalls and jeers are heard.

It’s now 5pm and, after four hours of driving, five hours marching and one hour at the G-20, Cardiff’s Socialists are returning home. I board the bus with them and, navigating slowly through the snarled London traffic, we listen to BBC Radio 4. The news is reporting on the closure of the G-20 conference; while they take time out to mention that Canadian Prime Minister Stephen Harper delayed the traditional group photograph of the G-20’s world leaders because “he was on the loo“, no mention is made of today’s protests. Those listening in the bus are disappointed by the lack of coverage.

Most people on the return trip are tired. Many sleep. Others read the latest issue of The Socialist, the Socialist Party’s newspaper. Mia quietly sings “The Internationale” in Swedish.

Due to the traffic, the journey back to Cardiff will be even longer than the journey to London. Over the objections of a few of its members, the South Welsh participants in the Youth Fight For Jobs stop at a McDonald’s before returning to the M4 and home.

Thursday, October 9, 2008

Stock markets across the world fell dramatically this week on worries that recent government moves might not prevent a global recession. The largest drop was with the Dow Jones (DJIA), which fell 678 points or more than 7.3% to below 9,000, closing at 8,579.19. The index fell over 2,000 points in the past nine days to reach its lowest level since 2003. The S&P 500 was down more than 7%.

The U.S. markets opened on the positive side, but with bad news coming from several different areas such as uncertainty over whether the 700 billion USD bank bailout bill passed by the United States House of Representatives and the Senate will be effective. Concerns over the lack of trading within the credit market was a primary cause of the drop.

This was the seventh straight day of markets closing in severely negative numbers.

One of the biggest stocks to drop was General Motors, which lost more than 33% of its value.

In the UK, the FTSE 100 dropped from a day high of 145 points to 52.9 points lower, at a 4 year low. The biggest drop was Barclays, which dropped 13.1%.

The only major world indexes that gained any value were the Hang Seng in Hong Kong, which closed up 511.51 points or 3.31%, and the Russian RTS, which partly recovered from yesterday’s fall with a 10.91% increase.

“Markets are still sceptic with regards to the international coordination to face the problems of the financial system,” explained Barclays Capital economists, and they predicted stocks would continue to be volatile.

Investors are awaiting the outcome of several meetings that will be held this weekend. Finance ministers from the G7 will be gathering in Washington, and the International Monetary Fund and the World Bank will be holding their autumn meetings.

In response to the financial tsunami, the European Central Bank (ECB) opened an unlimited emergency credit line on Thursday to stimulate liquidity in the institutions that are facing bankruptcy. Through six-day credits, the ECB plans to financially aid the 15 countries which are part of the Eurozone. Furthermore, it injected $100 billion dollars into the market, duplicating the figure it had originally offered.

Iceland nationalized Kaupthing Bank, the most important bank in the country. The Nordic state – whose economy is highly dependent on the banking system – is having great financial problems after the government nationalized the three most important banks, and could face bankruptcy.

Central banks in Argentina, Brazil and Mexico also decided to intervene in the market to stop the rapid devaluation of their currencies, fearing a capital flight out.

Germany’s Chancellor Angela Merkel did not rule out nationalizing banks.

Thursday, March 24, 2005

Iraqi and American forces raided a training camp in a remote, rural region 160 kilometers north of Baghdad on Wednesday, killing 85 insurgents. Seven Iraqi commandos were killed in the raid and six were injured, according to the US military.

In addition to placing the insurgent death toll at 85, the Iraqi government also said that between 500 and 700 Iraqi commandos took part in the raid.

After encountering heavy fire from an estimated 100 insurgents as they approached the camp, the Iraqi commandos called in support from the American 42nd Infantry Division, which sent in ground troops and attack helicopters. The battle began at approximately 11a.m. local time (0800 UTC) and lasted seven hours.

The training camp, located in a remote region near Lake Tharthar, which is adjacent to the predominantly Sunni Anbar and Salahuddin provinces, is the largest guerilla training camp that has been discovered in the war so far, according to Iraqi officials.

The insurgents had planned to attack the city of Samarra, located 55 kilometers east of the lake, with a large number of car bombs, according to the Iraqi Interior Ministry.

Iraqi officials claimed that most of the insurgents came from Arab countries, though men from the Philippines were also among the deceased insurgents. They also claimed to have captured one Algerian.

“The Arab countries are sending fighters into Iraq because they want to destroy our democratic movement,” said General Rashid Flaiyeh, head of Iraqi police in Salahuddin Province, in an interview broadcast on state-run television network Al Iraqiya.

Sunday, July 26, 2009

Spaniard Alberto Contador of team Astana has won the 2009 Tour de France after crossing the line in a final time of 85:48:35 for the 21-stage grand tour. Andy Schleck from Luxembourg came in second place. Schleck, riding for Team Saxo Bank also won the maillot blanc for the young riders’ classification.

American Lance Armstrong of Astana claimed the final podium spot, 5:24 behind Contador. The seven-time Tour-winner returned from retirement after winning the 2005 Tour de France.

Winning the final stage at Champs-Élysées in Paris, France, was Mark Cavendish in a time of 4:02:18. The British cyclist won six stages this year, topping his achievement of four stage wins last year.

The points classification was won by Thor Hushovd of Norway with 280. The Cervélo TestTeam rider finished ahead of Team Columbia-HTC‘s Cavendish, despite the latter’s multiple stage wins.

The King of the Mountains winner is Italian Franco Pellizotti, riding for Liquigas, who also got the additional honor of being the most aggressive rider. Team Astana, with two men on the podium, won the team classification.

Monday, January 11, 2010

Harry Reid, the Nevada Democrat who is US Senate Majority leader, is under a lot of criticism over comments he made during the 2008 United States presidential election, toward US President Barack Obama. The highlighted comment made by Reid was calling Obama a “light-skinned” black man “with no Negro dialect unless he wanted to have one.” The remarks were released in a book co-written by Time magazine reporter Mark Halperin, and New York magazine reporter John Heileman.

Reid has since apologized for “using such a poor choice of words.” President Obama quickly accepted the apology. Reid has been a partner with the Obama Administration on issues such as health care reform. Democratic Party chairman Tim Kaine told Meet the Press “the comments were unfortunate and they were insensitive”, but “I think the case is closed because President Obama has spoken directly with the leader [Reid] and accepted his apology. […] We’re moving on.”

Members of the Republican Party have called on Reid to resign over his comments. Party chairperson Michael Steele told Fox News Sunday “There is this standard where the Democrats feel that they can say these things and they can apologize when it … comes from the mouths of their own. But if it comes from anyone else, it’s racism,”. Having appeared alongside Kaine, where the Democrat Party chairman stated the case was closed, Steele argued that there was a double standard, on the basis of then-Senator Obama calling in 2002 calling for Trent Lott, at that time the majority leader, to be ousted for supporting the views of Strom Thurmond, who stood as a segregationist Presidential candidate in 1948.

The book Game Change published today, also says that New York Senator Chuck Schumer encouraged Barack Obama to run in early 2006, even though he later endorsed his former colleague Hillary Clinton. Other revelations included that John McCain’s aides were concerned about Sarah Palin’s failure to understand basic facts prior to her ABC News interviews with Charles Gibson, including why North Korea and South Korea are separate countries.

Co-authors Halpern and Heileman have a history of vocal criticism of media coverage of the 2008 Presidential election. In late 2008, Daily Kos reporter Jed Lewison drew attention to comments by Halpern, on-stage with Heilmen, asserting the reportage was, “extreme bias, extreme pro-Obama coverage”; he characterised election coverage as, “the most disgusting failure of people in our business since the Iraq war”. Halpern’s centrepiece example was an analysis of New York Times profiles on the prospective First Ladies; overlooking earlier NYT coverage that reported on Obama’s Caucasian ancestors being slave owners.

Thursday, February 17, 2005

CARACAS, Venezuela –The Brazilian President Luiz Inácio Lula da Silva met the Venezuelan President Hugo Chavez on February 14, 2005 in Caracas, Venezuela. Brazil and Venezuela signed agreements of cooperation on many areas. According to the Brazilian government this was a strategical encounteur. This meeting is the first of three meetings that President Lula will have with South American Presidents in three days. The scheduled meetings are with the presidents of: Venezuela (February, 14), Guiana (February, 15) and Suriname (February, 16).

President Lula was accompanied by the following comitiva: the Minister of Development, Industry, and External Trade Luiz Fernando Furlan, the Minister of Finance Antônio Palocci, the Minister of Foreign Relations Celso Amorim, the Minister of Health Humberto Costa, the Minister of Mines and Energy Dilma Roussef, the Minister of Tourism Walfrido Mares Guia, the President of Petrobras José Eduardo Dutra, the President of National Economic and Social Development Bank (BNDES) Guido Mantega, the President of Eletrobrás Silas Rondeau Cavalcante Silva and the Special Secretary for Aquaculture and Fisheries José Fritsch. In addition a delegation of executives representing enterprises from Brazil accompanied the President.

The Brazilian Ministry of External Relations told the trip aims the construction of a strategical alliance and commercial integration between both countries. The Brazilian Presidential Advisor Marco Aurélio Garcia said:”With this gesture, Brazil will consolidate one of its major political goals, which is the constitution of a South American community of nations”. He added: “These agreements with Venezuela are strategical. We want this agreement as a model for other agreements in the region.”

According to President Lula the integration of the Latin America is the priority number one of his government. Days before the arrival in Venezuela and commenting about the trip Lula said: “We’re going to do the same thing in Colombia and in other countries in which integration is no longer a campaign speech but part of the way we deal with real things, day to day”.

The integration of the Latin America is the politics repeatedly proposed by Lula during the meetings of the Foro de São Paulo. According to him and the others members of the Foro there must be a integration among all the left parties and governments of Latin America. The union aims to be an alternative and opposing force to the politics and influence of the richest countries, mainly the United States. Among the organizations which are usually participants of the Foro de São Paulo are: Communist Party of Cuba, Colombian Communist Party, Communist Party of Bolivia, Communist Party of Brazil, Workers’ Party, Paraguayan Communist Party, Peruvian Communist Party, Socialist Party of Peru, National Liberation Army, Revolutionary Armed Forces of Colombia, Farabundo Martí National Liberation Front, Guatemalan National Revolutionary Unity, Tupamaros.

On December 4, 2001 during the 10th edition of the Foro de São Paulo in Havana Lula said:”A shoal of small fish may mean the finishing of the hungry in our countries, in out continent. We should not think as the History ended on our journey by the Earth. Even it happens just once, or with one gesture, let’s effectively contribute to the improve the life of millions of human beings who live socially excluded by this neoliberal model.”[1]

In Venezuela, once again, he brought out the integration wish: “This is the biggest dream I am carrying, that we can negotiate collectively, not like one country, but like a set of countries so we can do that our people may have the chance to conquer the full citizenship.”

Friday, January 4, 2008

Due to the declining value of the United States dollar, tourism officials in India have decided to no longer accept the American currency at the site of the Taj Mahal and 120 other Indian historical sites.

The monument has refused to take dollars since November, as such, any American tourist wishing to visit the white domed marble mausoleum of Mughal emperor Shah Jahan for his wife Mumtaz Mahal will pay over 500 Indian rupees (US$ 12.80 at the current exchange rate) to be allowed in and additionally receive a free bottle of water.

The decision came as a result as part of the continuing decline of the American dollar, falling 11 percent in 2007 and now valued around 39 rupees.

Tourism Minister Ambika Soni told CNN-IBN that it seemed more practical and will save tourists money because “the dollar was weaker against the rupee,” Soni added “Before the dollar lost its value, there was a demand to have (admission tickets) just in rupees.”

Monday, April 6, 2009

Leaders and central banks in Russia, China, Malaysia, Indonesia, Thailand, and Kazakhstan have called for an international currency system.

Speaking on April 1 in advance of the G-20 summit in London, Russian president Dmitry Medvedev argued that the international finance system needed a “new construction” including “new currency systems”, saying that such a new system could be the purpose of a revamped IMF and World Bank. The IMF was originally founded in 1946 as the overseer of the Bretton Woods system, which from its founding until the 1970s tied the western world’s currencies to the US Dollar, which was in turn backed by gold. Russia’s proposal was for the new currency to serve as a reserve currency, one which would take the place of the dollar, euro, and other heavily-traded currencies as an international standard of exchange.

Medvedev’s comments are a reversal of Russian position from a lukewarm response following a looser outline for a worldwide currency by Kazakhstani president Nursultan Nazarbayev. On March 11, Nazarbayev suggested the establishment of the “acmetal”, a portmanteau of “acme” and “capital“, as a reserve currency replacing the ruble in international transactions, first for Central Asia and then worldwide. 1999 Economics Nobel laureate Robert Mundell, speaking to the Daily Telegraph, endorsed the idea, saying “It would be a very good idea if the G-20 took that idea up in London”.

2001 Nobel economics prize winner Joseph Stiglitz, meanwhile, said the new currency could come about quickly if it was based on an expansion of the IMF’s already established system of Special Drawing Rights, units of exchange used by the IMF which already have some of the features of currency. Stiglitz argued that, as the US dollar has become the standard global reserve currency, it has inadvertently created a system which hurts the world economy. “It’s a net transfer, in a sense, to the United States of foreign aid,” he argued, reasoning that when other countries purchase US dollars in order to use them on international markets (such as for the buying and selling of petroleum), they effectively give the US a zero-interest loan — sometimes at times when they can least afford it. Stiglitz made his comments as head of a United Nations panel of economists giving recommendations to address the global financial crisis.

In the weeks leading up to the G-20 conference, the People’s Republic of China also began discussing a new system for reserve currencies. In a March 23 speech, Zhou Xiaochuan, governor of the People’s Bank of China, endorsed a new reserve currency, saying “the desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.” Zhou went on to endorse the expansion of the SDR system in the long-term creation of a reserve currency government by the IMF. While Zhou did not mention the US dollar specifically, analysis by Qu Hongbin, chief China economist for HSBC, for the Financial Times said that the speech “is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money”.

China holds $740 billion as assets; inflation in the US economy, which has been low in recent years, would directly cause those assets to lose value.

While the Chinese government has engaged in currency swaps with several other growing economies, such as South Korea, Argentina, Malaysia and Indonesia, the Chinese Yuan cannot be used itself as a reserve currency as it cannot be freely traded on the global market.

The Chinese-Russian proposal was not entered onto the agenda at the G-20 meeting itself. Nonetheless, British Prime Minister Gordon Brown said that the G-20 was open to considering the proposal if and when a detailed one is presented. United States President Barack Obama, meanwhile, endorsed the continuation of dollar supremacy, saying that the US dollar is “extraordinarily strong” and arguing that its strength was the result of the intrinsic stability of the United States economic and political system; US treasury secretary Timothy Geithner had, the week before, made comments that while he supported an expansion in the SDR mechanism he rejected the idea of a global currency. Rather than change the role of SDRs, the G-20 meeting instead added $250 billion in support to the fund backing SDRs.

After the G-20 conference ended on Thursday, Malaysia’s The Star BizWeek reported that the central banks of Indonesia, Malaysia and Thailand had endorsed the Chinese proposal. All three countries have close economic ties with China and suffered heavily from the collapse of their currencies in the 1997 Asian Financial Crisis; the sudden growth in the value of the US dollar relative to those countries’ native currencies sharply increased debt in Southeast Asia’s economies, leading to a wave of bankruptcies.

International reaction from other economies has been mixed and guarded. Luiz Inacio Lula da Silva, President of Brazil, said that the currency proposal was important to discuss but did not give extensive comment. And while UPI reports that India supported the SDR proposal at the G-20 conference, the Indian Press Trust quotes Indian Prime Minister Manmohan Singh as saying last month, “It is too early to talk about common currency.”

Calls for an independent global reserve currency are not new. In 1944, John Maynard Keynes proposed the “bancor“, a unit like the SDR supported by a basket of commodities. Keynes’ idea was rejected and the US dollar took the equivalent role under the Bretton Woods system. Keynes proposed that the bancor system would be reinforced by a tax on participating countries’ current accounts, the difference between their exports and their imports, in order to encourage balanced trade. Meanwhile, monetary unions have become more popular since the end of the gold standard, with most of the European Union now trading the euro, and several countries outside the EU using it as a de facto currency; five West African countries adopting the eco at the end of this year; and the African Union planning to introduce the afro in 2028. Proposals for a North American currency union based around the so-called “amero” have been frequently discussed as the focus of conspiracy theories in the United States, but none of the US, Canada or Mexico have actively pursued the establishment of any such monetary union, however the dollar is the currency of several Latin American countries.