China economist blasts dollar dominance on eve of G20

[TheInternet1980]

http://news.yahoo.com/s/nm/20110330...zBHNlYwN5bi1jaGFubmVsBHNsawNjaGluYWVjb25vbWk-

This doesn't sound good. If something else becomes the global currency/petro dollar, we're...kind of screwed.

 

[Infohawk]

"Nations around the world have no way of restricting dollar issuance by the Federal Reserve. The current international monetary system lacks both stability and fairness," Xu wrote.

LOL. Everybody knows that before they buy US debt. If China is so worried about it they don't have to buy US treasuries. Nobody's forcing them to do that.

 

[bfdd]

good, our dollar should be blasted. if i was china i would be pissed about the qe bs

 

[Siddhartha]

http://news.yahoo.com/s/nm/20110330...zBHNlYwN5bi1jaGFubmVsBHNsawNjaGluYWVjb25vbWk-

This doesn't sound good. If something else becomes the global currency/petro dollar, we're...kind of screwed.

Why would the US be screwed if the dollar stopped being the global currency?

 

[irishScott]

Why would the US be screwed if the dollar stopped being the global currency?

I'm no economist, but wouldn't that just accelerate the deadline for the gov defaulting on foreign loans? Without a reliance on the dollar, much less motivation to keep it afloat.

 

[Siddhartha]

This economist could be speaking for China. Perhaps China will allow their currency to float to its real value.

Economically, China is so in bed with the US they would be crazy to do anything to kick the US out. Is China crazy?

 

[LegendKiller]

This economist could be speaking for China. Perhaps China will allow their currency to float to its real value.

Economically, China is so in bed with the US they would be crazy to do anything to kick the US out. Is China crazy?

They can't allow a float. They know it. They also know they can't afford to destroy the dollar. They also know what Bernanke is doing to them and they hate it.

They made this poison cake over the last decade and now they're eating it. China is massively pissed because they are trapped.

Whose fault is that? Not the US, not the Fed, not the Gov't. It's their fault. Had they stuck to the original use of the dollar peg, as a legitimization of their currency, they would have been fine. However, they abused the peg and are now paying the price.

 

[Schadenfroh]

Someone must be asking to print China's currency reserves away...

 

[Matt1970]

This economist could be speaking for China. Perhaps China will allow their currency to float to its real value.

Economically, China is so in bed with the US they would be crazy to do anything to kick the US out. Is China crazy?

So True Especially the Bold.

 

[MotF Bane]

They can't allow a float. They know it. They also know they can't afford to destroy the dollar. They also know what Bernanke is doing to them and they hate it.

They made this poison cake over the last decade and now they're eating it. China is massively pissed because they are trapped.

Whose fault is that? Not the US, not the Fed, not the Gov't. It's their fault. Had they stuck to the original use of the dollar peg, as a legitimization of their currency, they would have been fine. However, they abused the peg and are now paying the price.

Yep, Xu's just raging out.