Friday, November 12, 2010

China Lashes Fed Easing as Risk to Global Recovery

Well.... Tough s__t.

Reuters reported on 11/11/2010:

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.

Oh really? Has China acted as if it cares about anyone, or any country other than Chinese and China?

Oh, I see, the Chinese are exceptional. Literally.
A Foreign Ministry spokesman added that Chinese President Hu Jinatao, discussing Washington's wish to see a sharp revaluation of the yuan, had told U.S. President Barack Obama earlier that reform of the currency would have to be gradual.

Meaning they have no intention of doing it.

It was their choice, aping the Japanese, to pursue mercantilism, artificially devaluing their currency to have an export edge. They've been phenomenally successful, flooding the world with their junk, wiping out the locally produced goods. So, when the Federal Reserve goes mercantilistic, the Chinese cry foul. It's not fair! It's not good for the world! (as if they ever cared about the world.)

For that matter, the EU is a big exporter thanks to Germany, who is also crying foul. So is Brazil.

To these exporters, the US exists simply to gobble up what they offer, without resistance. Like those foie gras goose.

Things are about to get ugly. Now every nation is mercantilist. The currency war is on, and inflation is on.


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