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China: QE2 Undermines Global Recovery

From an unfazed Reuters:

China lashes Fed easing as risk to global recovery

Thu Nov 11, 2010

SEOUL Nov 11 (Reuters) – China said on Thursday that the U.S. Federal Reserve’s move to ease monetary policy risked undermining the global economic recovery, adding that Washington "should not force others to take medicine for its own disease".

A senior Chinese central bank official told reporters at the G20 summit in Seoul that the Fed’s move had caused "strong concern" around the globe, and major reserve countries ought to factor in the global impact of their policies.

Zhang Tao, director of the international department of People’s Bank of China, also warned that disorderly capital inflows resulting from the Fed’s action could hurt emerging markets.

"For emerging countries, capital inflows may lead to significant increase in asset prices and foreign exchange reserves, and many ocuntries [sic] are concerned about that," he said.

"Doubtlessly, disordered international capital inflows will make emerging countries very vunerable [sic]. As emerging countries are important for the global economic recovery, that will greatly increase the downward risks in the world economy." …

Judging from the typos, the Chinese were very upset. And who can blame them? How would you like to lend someone a $100 dollars and only be paid back $75?

But what a risky tactic this is for the US. You never know. Someday we might need to borrow more money from the Chinese or even some other country.

This article was posted by Steve on Thursday, November 11th, 2010. Comments are currently closed.

5 Responses to “China: QE2 Undermines Global Recovery”

  1. NoNeoCommies says:

    Nice to know Obama is pissing someone else off.

  2. Petronius says:

    German Finance Minister Wolfgang Schaeuble added his voice to the outcry, calling US monetary policy “clueless” and accusing the US of “currency manipulation” by means of “printing” money.


    Nerobama and the Sandinistas in Congress have subjected Americans to double jeopardy.

    The double jeopardy in this case consists of skinning America to the bone by robbing her of her wealth and prosperity, saddling her with massive debt, and then turning around and –– by means of inflation of the currency and devaluation of the dollar –– charging America for the privilege of bailing herself out of the mess created by the robbers.

    The 30-year interest rate has been moving up steadily for several weeks, today up to 4.33%.

    Gold ($1406), silver ($27.40), and oil ($87.90) are all surging.

    These rising prices stand as an ethical barometer of Liberal mismanagement of our fiscal, monetary, and currency systems.

  3. jambon says:

    Leave it to Reuters to portray the Chinese as simpletons that can’t spell.

    Liberals have been throwing the country under the bus for decades and have been able to get away with it because the American system is so strong it can withstand the attacks from within.

    Lazy citizens (i.e., “Independents” aka the “Lazy” Vote) who don’t bother with the “annoying” political system will have to inconvenience themselves a little and vote to save their skins. It’s easy for the Liberals to go vote because they’re not working in legitimate jobs en masse anyway – the middle and upper middle class usually has to take a half day off work to go vote and usually doesn’t bother… but it matters now!

    Conservatives must vote conservatives into strong majorities and vote the liberals into the dirt. 2010 election turn-out was surprising, 2012 must be full tilt.

    • finebammer59 says:

      true dat, jb.

      but by the same token, the conservatives elected must keep their noses clean (no mark foleys’ or duke cunninghams’) and listen to the people who put them where they are.

      if they screw this up, we are truly in deep doo doo.

  4. jambon says:

    I’m pretty much convinced that the 2012 elections will create a considerable amount of turnover for the Republicans because none of those clowns are going to really do anything.

    The time could not be better for fresh faces to run against incumbents.

    I’m very happy that the Tea Party made the progress that it did – it would have been nice if all of them had won but the fact that they came as close as they did is inspirational, especially for real conservatives. Well-managed campaigns for new Conservative candidates would, most likely, be a winning solution.

    These guys that have been in office for years need a little competition to justify their existence – it would be great if the support staff was booted out as well.

    As far as “doo doo” goes – we’re still in it – the Republicans have a majority but will very likely squander it – i’m hopeful but have weak optimism that the current batch of old fogies will take a stand for doing what is right and will insist on comity for the sake of being gallant.

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