Saturday, March 24, 2012

China Govt Economist:Like Fed, ECB Printing Way Out Of Crisis

''A senior Chinese government economist warned
Saturday that Europe seems to be following the U.S. in printing its way

out of the current debt crisis, and that China could wind up as the
biggest victim.

Chinese Academy of Social Sciences professor Yu Yongding said he is

concerned that Europe has “no resolution, no will or capacity” to
implement austerity, and European countries will instead depreciate the
euro to reduce their liabilities.

The European Central Bank’s long-term refinancing operations (LTRO)

suggest that it is taking a page from the Federal Reserve’s playbook and
has abandoned its opposition to monetary easing, he said. China should
prepare for the consequences of this..''

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