Friday, November 5, 2010

U.S. dollar printing is huge risk -China c.bank adviser

The economic war is ongoing. If the Fed is forced to monetize its debt, either directly or indirectly, the economic war will intensify as confidence deteriorates.

Unbridled printing of dollars is the biggest risk to the global economy, an adviser to the Chinese central bank said in comments published on Thursday, a day after the Federal Reserve unveiled a new round of monetary easing.

China must set up a firewall via currency policy and capital controls to cushion itself from external shocks, Xia Bin said in a commentary piece in the Financial News, a Chinese-language newspaper managed by the central bank.

Source: reuters.com

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