[The Telegraph, U.K.]

[Click Here for Jumbo Version]



Le Quotidien d’Oran, Algeria

The Currency Wars: Coming Soon to a Nation Near You


"Several Chinese officials haven’t hesitated to talk about the risk of a 'currency war,' and have warned the U.S. Senate against the adoption of a bill that provides for penalties against the products of countries of concern."


By Akram Belkaid in Paris


Translated by Carolyn Yohn


October 18, 2011


Algeria - Le Quotidien d’Oran - Original Article (French)

Once again, there is talk of the undervaluation of the yuan and a possible monetary showdown between the United States and China. As is almost always the case, the offensive comes from Washington. Last week, U.S. senators voted by a large majority (79 against 19) to open debate on legislation that aims to penalize all countries that maintain an artificially weak currency in order to boost their exports. Of course, the initiative is primarily aimed at China, which is regularly accused of distorting commercial competition by keeping the renminbi (the other name for the yuan) at least 40 percent below its actual value (the yuan hasn't grown more than 3 percent against the dollar since the beginning of the year).




As can be expected, Chinese authorities have little appreciation for this frontal attack. As a sign of the fury in Beijing, three separate official reactions questioned the Senate's move. The ministries of Foreign Affairs and Commerce and the Central Bank all denounced firmly, if not virulently, an act which “seriously violates World Trade Organization rules.” Several Chinese officials haven’t hesitated to talk about the risk of a “currency war,” and have warned the U.S. Senate against the adoption of a bill that provides for penalties against the products of countries of concern. On the U.S. side, this isn't the first time that the Senate has expressed an inclination to cross swords with China over the yuan.


This time, keeping in mind the November 2012 elections, which will be held with the unemployment rate flirting with 10 percent of the labor force, elected officials in the U.S. Capitol will be debating this issue. And in this case, they have just obtained the valuable support of Ben Bernanke, chairman of the Federal Reserve (the FED). According to him, the undervaluation of the yuan, “threatens that global recovery because it prevents the rebalancing if aggregate demand in emerging economies.”


[The Telegraph, U.K.]

[Click Here for Jumbo Version]



People's Daily, China: Chinese Don’t Need 'Occupy Wall Street'
Berliner Zeitung, Germany: Dispense with Regrets Over Qaddafi's Killing

Kayhan, Iran: Wall Street Uprisings Herald Victory of Islam and Iran!
Sueddeutsche Zeitung, Germany: Like Americans, Germans Must Stand Up at Last!

La Jornada, Mexico: Jobs' Career Showed How Capitalism was Meant to Work
Die Welt, Germany: Wall Street Occupied by Tea Party of 'Generation-Twitter'

Il Sole 24 Ore, Italy: How Finance Sector Greed Tramples on Human Rights
FTD, Germany: America's Economic Crash Had Little to do with September 11
Estadao, Brazil: To Shorten Crisis, U.S., E.U. Should Look to Latin America
Frankfurter Rundschau: Obama's Middle Road is Fatal
La Jornada, Mexico: The 'Grand Debt' of U.S. Families
Jornal Do Brasil, Brazil: American Default and the End of 'Zero Risk'
The Telegraph, U.K.: World Needs America to Come to its Senses
El Pais, Spain: Playing Chicken is the World's Newest Sport
Mainichi Shimbun, Japan: U.S. Must Prevent Another 'Made in U.S.' Disaster
Yomiori Shimbun, Japan: U.S. Lawmakers Should 'Stop Playing Political Games'
Yezhednevniy Zhurnal, Russia: The U.S. and Soviets: Pyramid Builders to Raiders
Frankfurter Rundschau, Germany: 'Radical' Republicans Threaten U.S. with Ruin
Tiscali Notizie, Italy: The Fiscal Decline of the 'Apocalypse'
News, Switzerland: Notion: 'Pay Politicians Based on Performance'
Salzburger Nachrichten, Austria: Debt Ceiling Attack By Republicans 'Backfires'
Gazeta, Russia: America's Astonishing 'Battle for the Ceiling'
People's Daily, China: U.S. Game of Chicken Threatens Creditors and Economy
Die Zeit, Germany: U.S. Risks 'Plunging World' Into New Financial Crisis
O Globo, Brazil: Global Economy Hangs on 'Mood' of U.S. Voters
The Telegraph, U.K.: Down on the Fourth of July: The United States of Gloom
Financial Times Deutschland, Germany: For Americans, a Dour Independence Day
Financial Times Deutschland, Germany: Who Cares about the U.S. Economy?
Folha, Brazil: U.S. Conservatives Threaten to Plunge U.S. into 'Lost Decade'


Bookmark and Share


In plain terms, American authorities accuse their Chinese counterparts of not importing enough foreign goods, to the detriment of, among others, U.S. exporters. Even President Barack Obama has entered the fray, declaring on Thursday, October 6, that “China has been very aggressive in gaming the trading system to its advantage and to the disadvantage of other countries.” Even so, the White House remains reserved, if not hostile, toward the Senate's proposed legislation. Such is also the position, for the moment, of the House of Representatives.




In addition to the debt issues of European states and the fragile health of the international financial system, it is clear that the issue of the currency will be part of the G20 agenda in Paris next month. But it is still not clear that China is the only country deserving of indictment. Indeed, many emerging countries, including Brazil, don't like the ongoing weakness of the dollar, because except for the yuan, the greenback has fallen against all other major currencies, including the euro. As a result, the risk of a “currency war” cannot be excluded in the coming months - a development that would do nothing but reinforce the rise of protectionism. 



opinions powered by
blog comments powered by Disqus








































[Posted by WORLDMEETS.US, Oct. 28, 5:49pm]


Bookmark and Share