International reserve currency

When Treasury Secretary Tim Geithner recently visited China in a rah-rah session for the dollar—their reaction was almost appalling. In fact, while speaking to Chinese university students... he promised them that the dollars owned by their government were "very safe … and their reaction? They nearly laughed him off the stage!

There was a time when China was "caught in a 'dollar trap' and has little choice but to keep pouring the bulk of its growing reserves into the U.S. Treasury, which remains the only market big enough and liquid enough to support its huge purchases." Well, not anymore!

The People's Bank of China just issued a report that shocks the financial markets, part of it said: "To avoid the shortcomings of sovereign credit currencies acting as reserve currencies, we need to create an International reserve currency that can maintain the long-term stability of its value."

China wants a new international currency; hence, China is proposing that the International Monetary Fund's unit of accounting (the Special Drawing Right, or SDR) to replace the dollar as the dominant global reserve currency.
Incidentally China just bought $50 billion of bonds denominated in SDRs demonstrating its commitment to the idea.

China indicated the SDR to be 20% of each dollar: Euros, Yen, Sterling... and Yuan.

The total U.S. obligations—gross federal debt outstanding plus the net present value of unfunded liabilities—is at $81 TRILLION: Roughly 6 times the level of reported U.S. gross domestic product (GDP), and GREATER THAN THE TOTAL ESTIMATED GDP!

Because the US’s solution is always the same: If Washington can't borrow the money it 'needs', it will just print it instead. That’s the recipe for massive hyperinflation, plunging currency values and a crisis of epic proportions; which will reduce demand for the greenback, and the house of cards will begin its collapse.
Hong Kong should monitor the dollar’s spiral and get ready!