Sunday, November 15, 2009


clipped from

The showdown between the U.S. and China over money has been brewing for some time. The governor of the People's Bank of China, Zhou Gaoxiong, who rules over China's $2 trillion plus reserves, launched a campaign earlier this year to create a new reserve currency to replace the dollar. (See "Dollar Slams Up Against A (Great) Wall.")

Mr. Zhou, in a March speech, also spanked Uncle Sam for the mediocre version of China's $600 billion stimulus program, which has turned the formerly sinking Chinese economy right around. The U.S. stimulus plan, though larger than China's by more than $100 billion, did not hit the market soon enough and was not focused on generating immediate new demand as China's. Zhou also mocked our porous accounting system, our inept credit rating agencies and faulty regulation of "too big to fail" U.S. banks. The message: "We here in China do it far better. America should be following China, not vice versa."