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China Scared of U.S. Printing Press
Cheng Siwei, former vice-chairman of the Standing Committee and now head of China’s green energy drive, said Beijing was dismayed by the Fed’s recourse to "credit easing".
"We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como.
"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change,…
8Sep2009 | The Real Deal | 3 comments | ContinuedChina Nervous Over Money Printing
Key currencies, including the dollar, could come under growing pressure because of extraordinary money-printing by central banks to counter the financial crisis, China’s central bank said on Wednesday.
In its quarterly report on monetary policy, the People’s Bank of China pledged an ample supply of credit to support the economy, which it said would enjoy "stable and quite fast" growth despite current weakness in external demand.
My comment: Chinese money supply growth is up 25% y-o-y!
(snip)
"As more and more economies start to implement extraordinary monetary policies like quantitative easing, risks of major currency depreciation may grow,"…
7May2009 | The Real Deal | 0 comments | Continued
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