I'm not-low all the time
- Jan 2, 2006
- Reaction score
- Venice Beach, FL
- Political Leaning
Federal Reserve Chairman Ben S. Bernanke defended his monetary stimulus to fellow central bankers, saying it will aid the world economy, and made some of his strongest criticism of China’s weak-currency policy...................
"The best way to underpin the dollar and support the global recovery “is through policies that lead to a resumption of robust growth in a context of price stability in the United States,” Bernanke said in a speech in Frankfurt today. Countries that undervalue their currencies may eventually inhibit growth around the world and risk financial instability at home", he said.
Bernanke Steps Up Stimulus Defense, Turns Tables on China - Bloomberg
Ben Bernanke said:Currency undervaluation by surplus countries is inhibiting needed international adjustment and creating spillover effects that would not exist if exchange rates better reflected market fundamentals..........
On its current economic trajectory, the United States runs the risk of seeing millions of workers unemployed or underemployed for many years. As a society, we should find that unacceptable.
It's refreshing to see someone stand up to China. His point goes back to something i referenced less than a month ago: the persistent Chinese current account. Inflation concerns in the worlds second largest economy are magnified because the RYB is currently pegged to a US dollar being stimulated.