China warns Federal Reserve over printing money

[ASH]

China warns Federal Reserve over 'printing money'

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

[phanatic]

Re: China warns Federal Reserve over printing money

I can't blame the Chinese for their concern, but I can't say I feel sorry for them either. They allowed themselves to be put in this position by running massive trade surpluses and recycling those surplus Bonars into US Treasuries. Bottom line is they are going to get screwed out of a lot of money.

[metalman]

Re: China warns Federal Reserve over printing money

I can't blame the Chinese for their concern, but I can't say I feel sorry for them either. They allowed themselves to be put in this position by running massive trade surpluses and recycling those surplus Bonars into US Treasuries. Bottom line is they are going to get screwed out of a lot of money.

if it turns out the rumor is true... they've already offloaded the currency risk onto all the countries they did resource deals with... that'll give new meaning to the phrase 'passing the buck'. more like 'dumping the hot potato'.

[Diarmuid]

Re: China warns Federal Reserve over printing money

if it turns out the rumor is true... they've already offloaded the currency risk onto all the countries they did resource deals with... that'll give new meaning to the phrase 'passing the buck'. more like 'dumping the hot potato'.

Nice point - Maybe Chimera aint dead, what with all the high level shuttle diplomacy between Beijing and Washington in the last year, maybe a deal was signed and delivered to ensure the bag holder currently deemed to be China would in fact be the Africians and Latin Americans.

[metalman]

Re: China warns Federal Reserve over printing money

Nice point - Maybe Chimera aint dead, what with all the high level shuttle diplomacy between Beijing and Washington in the last year, maybe a deal was signed and delivered to ensure the bag holder currently deemed to be China would in fact be the Africians and Latin Americans.

stranger things have happened... stranger if that doesn't happen.

[BadJuju]

Re: China warns Federal Reserve over printing money

stranger things have happened... stranger if that doesn't happen.

It is really not that strange. Latin America and Africa have traditionally been the nations that have been left holding the bag for the excesses of everyone else.

[metalman]

Re: China warns Federal Reserve over printing money

It is really not that strange. Latin America and Africa have traditionally been the nations that have been left holding the bag for the excesses of everyone else.

should have thrown in a or two, but when am i not sarcastic?

[cjppjc]

Re: China warns Federal Reserve over printing money

if it turns out the rumor is true... they've already offloaded the currency risk onto all the countries they did resource deals with... that'll give new meaning to the phrase 'passing the buck'. more like 'dumping the hot potato'.

They should have taken gold;)

[audrey_girl]

Re: China warns Federal Reserve over printing money

didn't brazil wake up last week and negotiate one of those bi-lateral currency agreements with the Chinese?

[BadJuju]

Re: China warns Federal Reserve over printing money

should have thrown in a or two, but when am i not sarcastic?

I will throw in a few for you!

[phanatic]

Re: China warns Federal Reserve over printing money

if it turns out the rumor is true... they've already offloaded the currency risk onto all the countries they did resource deals with... that'll give new meaning to the phrase 'passing the buck'. more like 'dumping the hot potato'.

I agree they have done a really good job of investing some of those Bonars in copper, oil and other natural resources, but it takes a lot of billion dollar resource deals to add up to a trillion.

[bill]

Re: China warns Federal Reserve over printing money

didn't brazil wake up last week and negotiate one of those bi-lateral currency agreements with the Chinese?

yes
http://www.businessweek.com/globalbi...temp_top+story

China May 26, 2009,
Now some observers are changing their tune. China's financial moves during the last two months have persuaded Western experts that the nation's leadership intends to make the yuan freely convertible into other currencies—the first big step toward open confrontation with the dollar—within a few years.
Why have perceptions started to change? Last month, Beijing completed the last of a series of so-called currency swaps—providing yuan to other central banks for use in trade with China—with Argentina, Hong Kong, Indonesia, Malaysia, South Korea, and others. These arrangements theoretically removed any need for these trading partners to use the dollar as an intermediary currency in dealing with China. Last week, Beijing denominated a bilateral trade deal with Brazil in the two countries' currencies, rather than in dollars; the value of the agreement was not specified. The value of the other agreements comes to $95 billion. By way of comparison, U.S.-Chinese trade amounted to $333 billion in 2008.
Mind the Dollar's "Safe Haven Aspect"

Big hurdles remain for the Chinese. Making the yuan freely convertible is one: Major central banks would be loath to hold any large sums of any currency—the purest definition of a reserve currency—if they could not sell or trade it without limitation. Another is the absence of a large market for yuan-denominated bonds. One key sign of acceptance as a reserve currency would be if Western countries such as the U.S. purchased bonds denominated in yuan and sold at market rates. Until now, yuan-denominated bonds have been sold only by Chinese banks, along with multilateral banks such as the Asian Development Bank and International Finance Corporation, and the bonds have been sold only in China.
.
.

[audrey_girl]

Re: China warns Federal Reserve over printing money

yes
http://www.businessweek.com/globalbi...temp_top+story

thanks! I thought I saw that somewhere last week.