More good news from China...

Zhou Xiaochuan, People's Bank of China governor, had this to say (followed link from Instapundit) about the US dollar.  Of course, our inflation on purpose is a bluff until it's called...

The most disheartening part of the whole thing is the calling for SDRs to replace traded currency markets.  This would only worsen the problem.  It replaces the relative market in currencies we have now - where even the biggest (two) economies in the world get called out in two consecutive decades (your turn next, Europe) - with a centralized political body that can prop up bad currencies until the whole thing comes crashing down.  

China made a bad play in the last few years by speculating on the dollar, and as such it is just as much at fault for pumping up the bubble as we are.  Make no mistake, what Mr. Zhou is proposing will guarantee that next time the bubble is many times bigger, and has no bottom to pop to.