China Chastises West in Leadership Bid Before G-20

[Coventina]

Source: Bloomberg

March 27 (Bloomberg) -- China is scolding the world before the Group of 20 meeting next week, telling the largest countries to spend more on stimulus and fix their financial supervision.

Central bank Governor Zhou Xiaochuan yesterday lambasted governments that failed to emulate China’s “decisive” action to spur economic growth. Earlier this week he suggested creating a new international reserve currency to rival the dollar.

Evidence that China’s 4 trillion yuan ($585 billion) stimulus package is taking effect is emboldening the nation’s leaders to dictate their vision for a new world economic and financial order. Premier Wen Jiabao said this month he was worried about the value of China’s $740 billion in U.S. Treasury holdings and asked for a guarantee of their safety.

“China can stand up and say, ‘Our policies have worked, we have stabilized our economy first,’” said Glenn Maguire, chief Asia-Pacific economist at Societe Generale SA in Hong Kong. “China is positioning itself to have a much more significant role and influence at this G-20 meeting than it has at any other international forum in the past.”



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a1UC7pF1qNbw&refer=home

[tomm2thumbs]

1. who in the administration gets to tell the Chinese we can't pay the money back and...

...we're very sorry. Take back our poisonous, decrepit drywall, our lead-soaked toys, our pet-killing dog food, our tainted milk products. Take it all back cuz we don't deserve any of it. We feel terrible about not being able to pay you back the money.

We'll do better next time.

[denem]

2. If all bets are off, the Fed can pay back the Chinese in new bills.

For the $740 billion invested in the US, China fixes its currency artificially low against the dollar.

[Deja Q]

3. Exactly. This works both ways, and in ways both sides need some regulation