The Chinese are becoming increasingly wary of the growing supply of U.S. dollars, leading the head of the nation’s green energy initiatives to signal a move away from dollar reserves and toward, gold, euros and yen, according to a published report.
"If the Fed keeps printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies."
http://rawstory.com/...
China alarmed by US money printing
http://www.telegraph.co.uk/...
The US Federal Reserve's policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy.
Obama could have done the "right" thing in the first place and let failed banks and insurance companies fail. But he and his administration continued to prop up the 19 too greedy to fail banks in an attempt to try and keep the gigantic ponzi scheme US economy going rather than investing the $12 Trillion in infrastructure, education, health care, manufacturing and REAL wealth creating endeavors for Main St economic recovery !
Hello Ben Bernanke and and Timmy Geithner are you listening ?
"He who goes borrowing, goes sorrowing," said Mr Cheng Siwei, former vice-chairman of the Standing Committee
irony: this was a quote from Benjamin Franklin.
IMO there will be no return to normal bubble US dysfunctional economy that's totally dependent on increasing debt, financing engineering, and shuffling around assets with a jobless recovery for the faux American dream!
Update 1:
The USA is hooked on a dysfunctional economic system that's totally dependent on increasing debt and faux GDP growth and the MSM and politicians on both sides keep kicking the can down the road.
I would argue that the most serious threat to the United States is not someone hiding in a cave in Afghanistan or Pakistan, but our own fiscal irresponsibility
—David Walker, former comptroller of the United States
Update 2:
US recovery prospect 'very weak'
http://news.bbc.co.uk/...
He highlighted the fact that any recovery would be the result of government stimulus packages, which could not continue indefinitely.
Bingo !