In so doing, Dr. Mundell has said that it is reasonable

to reduce the US$’s position in the SDR from 45% to

40%; that the EUR should be held at 29% of the SDR’s

value; that the Yen’s percentage should also be kept

steady… at 15%; that the British pound sterling’s

weighting be cut from its present 11% to perhaps 5%,

or even perhaps to 0%, with the Yuan taking of the

remainder.

Dr. Mundell… oft times referred to as The Father of the

Euro, for it was he who championed the currency early

on… is exactly right concerning the Yuan’s

ascendency to its position just ahead of the Yen.

China’s role in the global economy is swiftly moving

ahead of that of Japan, and with a growing population

and a rising economy, along with a growing military

presence, China’s position amongst the global

economic elite is assured. As a friend once said, “We

must remember that of the history of the past thirty

centuries, China’s economy was the largest in the

world for 27 of them; we are simply regressing to the

mean.” Although obviously said in jest, our friend

spoke the truth. Dr. Mundell’s comments are simply

more evidence of that fact.