07.24.10

China and $

Posted in you've got mail at 12:21 pm by nemo

RG mail
michael-hudson.com (July 12 2010)
Hudson to Premier Wen Jaibao (March 15 2010)
Dear Premier Wen Jiabao,
I write this letter to counteract some of the solutions that Western
politicians are recommending for China to cope with its buildup of excess
foreign-exchange reserves. Raising the renminbi’s exchange rate against
the dollar will not cure the China-US payments imbalance. The dollar glut
will continue, and so will the currency fluctuation among the dollar, euro
and sterling, leaving no stable store of value. The cause of this
instability is that each of these three currency areas has grown top-heavy
with by debts in excess of the ability to pay.

http://michael-hudson.com/2010/07/dollar-hegemony-and-the-rise-of-china/

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