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Hu Highlights Need for U.S.-China Cooperation, Questions Dollar
WSJ ^ | 1/10/11 | ANDREW BROWNE

Posted on 01/16/2011 6:16:21 PM PST by EBH

Some of Mr. Hu's most significant comments dealt with the future of the dollar and currency exchange rates.

"The current international currency system is the product of the past," he said, noting the primacy of the U.S. dollar as a reserve currency and its use in international trade and investment.

The comment is the latest sign that the dollar's future continues to concern the most senior levels of the Chinese government. Beijing fears not only that loose U.S. monetary policy is fueling inflation, but that it will erode the value of China's holdings of dollars within its vast foreign-exchange reserves, which reached $2.85 trillion at the end of 2010.

China's central bank governor, Zhou Xiaochuan, created an international stir in March 2009 by calling for the creation of a new synthetic reserve currency as an alternative to the dollar. Mr. Hu's comments add to the sense that China intends to challenge the post-World War II financial order largely created by the U.S. and dominated by the dollar.

...China's moves already have spawned a thriving market for offshore trading of yuan in Hong Kong, and are widely seen as first steps toward making the yuan an international currency in line with China's new prominence as the world's second largest economy. Mr. Hu offered an enthusiastic endorsement of what are officially described as currency "pilot programs." They "fit in well with market demand as evidenced by the rapidly expanding scale of these transactions," he said.

(Excerpt) Read more at online.wsj.com ...


TOPICS: News/Current Events
KEYWORDS: husonfirst
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1 posted on 01/16/2011 6:16:23 PM PST by EBH
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To: blam

ping


2 posted on 01/16/2011 6:20:16 PM PST by EBH ( Whether you eat your bread or see it vanish into a looter's stomach, is an absolute.)
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To: EBH

Trading something that the Chinese government controls and manipulates?


3 posted on 01/16/2011 6:23:12 PM PST by mewykwistmas ("Politicians are the same all over. They promise to build a bridge even where there is no river. ")
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To: EBH

Hu’s the President of China?


4 posted on 01/16/2011 6:28:21 PM PST by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
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To: EBH
Dammit. I screwed it up. Start over.

Who's the President of China?

5 posted on 01/16/2011 6:28:58 PM PST by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
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To: Texas Eagle

The guy on first!


6 posted on 01/16/2011 6:32:48 PM PST by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
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To: LostInBayport

No, I mean what’s the name of the President of China?


7 posted on 01/16/2011 6:33:57 PM PST by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
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To: EBH

The Chinese are smart - but when they play ‘capitalism’, they’re playing on our field.


8 posted on 01/16/2011 6:35:39 PM PST by GOPJ (."Blood libel" - - when MSM/Dems incite hatred and violence against conservatives based on lies.)
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To: Texas Eagle

Hu? The guy who has brothers named Wu and Yu.


9 posted on 01/16/2011 6:38:29 PM PST by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
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To: Texas Eagle

Who?


10 posted on 01/16/2011 6:39:02 PM PST by gcraig (Freedom isn't free)
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To: gcraig

The President of China.


11 posted on 01/16/2011 6:44:55 PM PST by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
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To: EBH

God, I love FReepers.

The only one’s I know that can take a serious currency article about meetings this week in DC...and turn it into a comedy thread...

Wait...maybe it is a comedy?


12 posted on 01/16/2011 6:48:34 PM PST by EBH ( Whether you eat your bread or see it vanish into a looter's stomach, is an absolute.)
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To: EBH

If the US and China are making nice to one another in this economic environment it’s only because, in the background, each knows that the other is diligently preparing to deal harshly with civil unrest.


13 posted on 01/16/2011 6:57:55 PM PST by The Duke
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To: EBH
Positioning For A Food Riots Economy
14 posted on 01/16/2011 7:03:20 PM PST by blam
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To: Texas Eagle

What’s his name?


15 posted on 01/16/2011 7:06:51 PM PST by Eaker (In the middle of difficulty lies opportunity. Albert Einstein)
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To: Eaker

That’s what I’m trying to find out. Who’s the President of China?


16 posted on 01/16/2011 7:09:26 PM PST by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
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To: EBH

Hu’s in your wallet?.......


17 posted on 01/16/2011 7:10:44 PM PST by Red Badger (Whenever these vermin call you an 'idiot', you can be sure that you are doing something right.)
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To: Texas Eagle

The guy that’s on first base, that’s who!


18 posted on 01/16/2011 7:19:29 PM PST by jdsteel (I like the way the words "Palin for President" drive progressives absolutely crazy.)
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To: Texas Eagle

Correct!


19 posted on 01/16/2011 7:29:29 PM PST by Eaker (In the middle of difficulty lies opportunity. Albert Einstein)
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To: Eaker

The man, with the common Chinese appellation of “HU” is the president of china.


20 posted on 01/16/2011 8:33:13 PM PST by BenKenobi
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