- The US Federal Reserve’s Policy of printing
money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy. - 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.
- "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, so
UK Telegraph: China Alarmed by US Money Printing
by ilene - September 7th, 2009 5:27 pm
UK Telegraph: China Alarmed by US Money Printing
Posted by TraderMark at Fund My Mutual Fund