Anyone care to comment? I don't think this frontal approach is healthy. BEIJINGâChinese President Hu Jintao emphasized the need for cooperation with the U.S. in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a "product of the past" and highlighted moves to turn the yuan into a global currency. http://online.wsj.com/article/SB100...0.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsSecond
1. Ego 2. Flexing their muscle as they newest superpower. 3. Does seem a bit short sided as they will lose a big part of their export business.
He was complaining the fed is devaluing the dollar by purchasing bonds. Which it is. He is right. But, he is also a wimp. Because this inflation would not hurt him nearly as much (especially going foward) if the yuan were not pegged to the dollar. When you peg you surrender control to the Fed. As the poster before stated.