Makes sense ... they are the only power capable of making such a dramatic move and have the idea legitimately considered esp. when Russia supports it.

Europe would not do it .. not only would that be too much of a slap to their American friends, they lack any real strength given 1) their banking system is in probably worse shape than the US. 2) The euro itself is shaky ... in fact ... moving to a different basis of support for currency circulation would help address the gaping differences between the have and have not European countries.

With their massive holdings of US$ as reserves, the fact the Chinese are reaching out with an olive branch by saying theywill continue to purchase US treasuries China is doing the only thing possible to avoid 1) an ever increasing disaster for the world economy which will have the same inevitable result but with further financial destruction 2) an opportunity for the US to save face and work together with other countries to solve this problem as the suggestion picks up support 3) to which if the US agreed (I don't think they will) is the only way to avoid an incredibly bloody and massive world war headquartered in the middle east.

For the Chinese to avoid appearing more conforntational they had really no choice but to remain silent until ths US put forth their "plan" including "details" under the new adminstration.

The timing is swift given the announcement yesterday and leaves the door open for cooperative action amongst the G20 who if they could unanimously put pressure on the USA would avert both a further long term degradation to the living standard for the citizens of the US (there will be massive short term pain, but that is where Obama's charisma and penchant for selling where the people hear can work), and WWIII.

Let us hope and support this idea for the good of humanity.

orgy