The Chinese own more United States Treasury bills than can be counted in a lifetime, and as the dollar printing press roars on, the rulers of the People’s Republic are getting nervous. They would like to see another reserve currency, and quite like the idea of it being the renminbi. After all, the euro and the yen are really too small to fulfill the role, while sterling is just small change.
The future of the dollar has been all the rage this week as Warren Buffett and Pimco portfolio manager Curtis Mewbourne chimed in about its demise as a store of value. It somehow seems appropriate then that Joseph Stiglitz, the Nobel Prize-winning economist who is no stranger to the debate, would weigh in on the need for a new reserve currency at a conference in Bangkok.