How did we get to the point that China’s economist are on the side of the truth and our economists the side of deception?…
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U.S. is currency war’s “tomb maker”: China economist
An employee counts U.S. dollar banknotes at a branch of the Industrial and Commercial Bank of China in Huaibei, Anhui province in this May 25, 2010 file photo.
Credit: Reuters/Stringer
BEIJING | Thu Oct 14, 2010 6:39am EDT
BEIJING (Reuters) – The United States fired the first shot in the currency war and the rest of the world must be on guard for its deliberate strategy to devalue the dollar, a Chinese economist said in an official newspaper on Thursday.
In a front-page commentary in the overseas edition of the People’s Daily, Li Xiangyang described the United States as the conflict’s “first maker of tomb figures,” a Chinese idiom that means someone who creates a bad precedent.
Li, head of the Asia department at the Chinese Academy of Social Sciences, a top government think tank, said continued intervention in currency markets by developed economies would deal a blow to global economic recovery.
Chinese leaders have warned before that loose monetary policies in the United States pose a serious challenge for emerging markets, but rarely in such strident language, a window onto the rising anger in Beijing.
“The dollar’s depreciation may appear to be market-driven. In reality, it is a depreciation colored by very strong, deliberate actions,” Li said in the paper, which serves as the chief mouthpiece of China’s ruling Communist Party.
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