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Washington's Dollar Printing Practices Cause of Alarm in Asia | |||
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If there is no restraint in issuing major global currencies such as the US dollar, the occurrence of another crisis is inevitable: Chinese Financial think tank. November 05, 2010 (Hamsayeh.Net) - China has issued a strong warning to US over injecting unsupported dollars into its economy as a way to boost inflation and reducing the value of dollar, which is supposed to make US manufactured exports more competitive. Chinese Central Bank’s Monetary Policy Committee issued a statement on Friday accusing US of embarking upon trade protectionism by manipulating its currency the dollar. ‘If there is no restraint in issuing major global currencies such as the US dollar, the occurrence of another crisis is inevitable,’ said Xia Bin, a member of the Committee. He also labeled US printing more than $600 billion out of thin air money as a provocative move that could further deteriorate world financial markets. Yesterday US Federal Reserve chairman Ben Bernanke announced a stimulus package of $600 billion unsupported liquidity over an eight-month program as way to boost consumer demands. Xia Bin urged all other Asian economies to make sure they impose capital control measures to prevent hot money inflows damage their economy. China is world’s largest holder of US Treasury bills and any additional devaluation of US dollar would reduce China’s own holdings with potential to even wipe out their values altogether if there is going to be a US initiated hyperinflation, like what happened in Germany prior to WWII or recently in the African country of Zimbabwe. US Federal Reserve is making the dollar printing machines to work overtime, as a last resort to boost the country’s highly uncompetitive and deeply stagnated oil-dependant economy.
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US Federal Reserve is making the dollar printing machines to work overtime, as a last resort to boost the country’s highly uncompetitive and deeply stagnated oil-dependant economy.
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