India Joins Russia, China in Questioning U.S. Dollar Dominance

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“The major part of Indian reserves is in dollars -- that is something that’s a problem for us,”

Tendulkar, chairman of the Prime Minister’s Economic Advisory Council, said in an interview yesterday in Aix-en-Provence, France, where he was attending an economic conference.

As the talks have neared, China and Russia have stepped up calls for a rethink of how global currency reserves are composed and managed, underlining a power shift to emerging markets from the developed nations...

Former Chinese Vice Premier Zeng Peiyan said in a speech in Beijing yesterday, highlighting China’s concerns about a global financial system dominated by the dollar.

“your currency is likely to become my problem”

Russian President Dmitry Medvedev has repeatedly called for creating a mix of regional reserve currencies as part of the drive to address the global financial crisis, while questioning the dollar’s future as a global reserve currency. Russia’s proposals for the Group of 20 major developed and developing nations summit in London in April included the creation of a supranational currency.

“We will resume talks on the supranational currency proposal at the G-8 summit in L’Aquila on July 8-10,

Medvedev aide Sergei Prikhodko told reporters in Moscow yesterday...

[The consequences of the dollar being supplanted as global reserve currency (albeit unlikely) are staggering - and all brought about because America continues to spend money it doesn't have, essentially manufacturing money from nothing which lowers its value -- and the world knows it.]

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