China Warns Federal Reserve Over ‘Printing Money’
May 26th, 2009Via: Telegraph:
China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed’s direct purchase of US Treasury bonds.
Richard Fisher, president of the Dallas Federal Reserve Bank, said: “Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature.”
“I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States,” he told the Wall Street Journal.
His recent trip to the Far East appears to have been a stark reminder that Asia’s “Confucian” culture of right action does not look kindly on the insouciant policy of printing money by Anglo-Saxons.
Mr Fisher, the Fed’s leading hawk, was a fierce opponent of the original decision to buy Treasury debt, fearing that it would lead to a blurring of the line between fiscal and monetary policy – and could all too easily degenerate into Argentine-style financing of uncontrolled spending.
However, he agreed that the Fed was forced to take emergency action after the financial system “literally fell apart”.
His recent trip to the Far East appears to have been a stark reminder that Asia’s “Confucian” culture of right action does not look kindly on the insouciant policy of printing money by Anglo-Saxons.
Reporter doesn’t understand what’s at stake, and what the consequences will be, so we get this meaningless ‘eastern culture’ explanation as a supposed motivation (who fed it to him?). The chinese are stuck between a rock (domestic inflation) and a hard place (ending the exchange manipulation).
Sorry to say, but I’ve never seen worse reporting than that which Britain produces. They make the US media look good, and that’s really saying something.
Wasn’t the fact that the US government for the first time ever stopped tracking the debt by eliminating the indexes? What was that index called?? Anyone know? It was an index that kept them from printing money nonstop like they are doing now. I think it was called something like the “M Index”? Anyone??
Check out “Trivial Pursuit: The Treasury Secretary-Designee Installment” at http://uncapitalist.com/blog/?catid=17/blogid/1
one of the “hits” I got from searching M1+M2+M3 Index+Dark+Wraith.
“DW” is an economics professor at a midwestern college.
http://www.nowandfutures.com/key_stats.html
pookie,
the “Fed & Treasury total money supply” 2nd chart (long term) is pretty eye popping. ouch. Fischer’s interlocutors must have been reading the same blogs as you! LOL!