Friday, March 20, 2009

Is the US dollar killing China? - Victor Shih

Series of 1917 $1 United States Bearer NoteImage via Wikipedia

Now US president Obama has started the printing presses to flood the world with new US-dollars, existing fears in China that their economy has to suffer from the US problems re-emerge, says financial and political expert Victor Shih in Forbes. A popular book in China "The Currency Wars", even suggests an evil conspiracy to bring down the country.
Forbes:
The believers are not just fire-breathing ideologues. "Many technocrats believe in this argument that the U.S. is trying to screw over China by cheapening the dollar," says Victor Shih, a political economist and China specialist at Northwestern University. Shih learned of the influential reach of "Currency Wars" when he visited last summer with bureaucrats from the People's Bank of China.
"Many PBOC officials bought into the arguments of this book and I think they've been writing a lot of reports to Wen Jiabao saying we're holding a lot of dollars and we're exposed to this risk," Shih says. "And essentially that's true."
Commercial
Victor Shih is a speaker at the China Speakers Bureau. When you are interested in having him, sharing his insights, do get in touch.


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