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China warns Federal Reserve over 'printing money'

telegraph.co.uk — China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed's direct purchase of US Treasury bonds.

Who dugg this? Made popular May 27, 2009

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  • vat0r, on 05/27/2009, -7/+257China has most of our money. So the more money we print the less "wealthy" China becomes. Sounds ridiculous I know but basically that's the truth. They have a vested interest in our currency maintaining value.
  • Striker101, on 05/26/2009, -33/+277China is not the only one disturbed about USSA expanding the money supply, that's around the world. Even some of us here at home disagree with it, but they don't listen to us; they are sore afraid!
  • tasine, on 05/26/2009, -7/+198FTA: "This situation is of your own creation. When you berate your representatives or senators or presidents for the mess we are in, you are really berating yourself. You elect them," he said.
    ~~~~~~~~~~
    The same as saying we get the government we deserve as we are the ones who vote it in. Unfortunately, when 90% of a populace is totally disengaged from what is going on until a week before elections, then it votes based on whimsy or by party dictate, the rest of us suffer right along with those who abdicated their duty to pay attention and THINK for themselves.
  • BlacklabelSAR, on 05/26/2009, -29/+188When you are right, you are right.

    Nothing the Fed does is even legal. It's existence isn't even legal. It is a parasite and nothing more.
  • samsmartjr, on 05/26/2009, -40/+196Legalize pot. Legalize prostitution. Tax them both. Stop paying taxpayer's money to prosecute offenders. Save on money.
  • Simplysped, on 05/27/2009, -15/+148End the fed
  • BotchaMcCoola, on 05/27/2009, -3/+113Let that be a lesson to China. Don't lend so much to financially irresponsible countries.
  • V3n0M, on 05/27/2009, -4/+112Remember when Americans used to buy U.S. bonds?
  • prrp, on 05/27/2009, -3/+96Thank you for posting this. This is the reality of the situation. The government knows EXACTLY what it's doing - they realize that inflating will devalue the debt. It's criminal, honestly...
  • computershack, on 05/27/2009, -9/+96President Obama, it's your boss President HU Jintao here. I've just read that the Fed is planning on printing money again. I'm just ringing you to tell you to instruct them to stop now. Just thought I'd remind you that as we own most of your country and you're expecting us to bankroll your future plans, I expect full compliance.
  • ramonday, on 05/27/2009, -21/+104Totally dugg for USSA.
  • inactive, on 05/26/2009, -11/+68Is the United States Already Bankrupt?
    http://research.stlouisfed.org/publications/review ...
  • vofuse, on 05/27/2009, -5/+57In the '90s we were scolding China for its human rights abuses and debating among ourselves how we could effectively punish it for its behavior. How quickly times change.
  • mparker21311, on 05/27/2009, -30/+82Ron Paul
  • BuzzFriendly, on 05/27/2009, -0/+45What the hell is this mentality we have gotten ourselves into? I see comments like don’t pay them or China prints their own money, they treat their citizens bad. None of these are valid excuses to honor your word. Does our word as a nation and citizens not stand for something? Have we as US citizens become so disconnected from reality that when we borrow money we are not responsible to pay it back? That we have some sort of right to not be honest and trustworthy and honor the agreements we make? I am so sick of this entitlement mentality. We vote in these fools that dig us into debt (both sides) and then we think the people creating the problems can fix it? We start wars we can’t afford we create stimulus packages we can’t afford; we print money to cover our ass and people find this perfectly acceptable. The citizens cry we want healthcare, we want government created job (not market created jobs where an actual demand exist) how do you plan to pay for this? Print yet more money? The vast majority of people in this country need to get a mental douche and wake up to the fact that if we don’t change our ways and soon the things that make this country so great will be nothing more than a tale in a history book one day.
  • BlacklabelSAR, on 05/26/2009, -3/+47Who knew that a solution so simple was right there?
  • Solkre, on 05/27/2009, -8/+51Doesn't China screw with it's own money?
  • manstein01, on 05/27/2009, -7/+45I am disturbed to. But until the world chooses to downgrade America's credit rating, they (Fed + Federal Government) are going to continue this ponzie scheme while flipping everyone else the bird.
  • maj0rm0j0, on 05/27/2009, -10/+46China is easily one of the worst countries in the world at manipulating its own currency. What goes around....
  • V3n0M, on 05/27/2009, -5/+40And they wouldn't even have to fire one shot, all they have to do is stop buying our bonds.
  • Geheg3D, on 05/26/2009, -7/+41No! Don't tax them! The less money that can go to state bureaucrats, the better.


  • frcc, on 05/26/2009, -0/+34Appealing to peoples sense of nationalism to get a couple diggs isn't going to solve the problem.
  • masamunecyrus, on 05/27/2009, -1/+32If pot and prostitution taxation can fix $11.3 trillion in debt fund the inevitable national healthcare for the incoming baby boomer retirees, and pump enough money into the banks to solve the monetary crisis, we have more tha economic issues to deal with.
  • manstein01, on 05/27/2009, -0/+31Yes, that was when you could actually make money on them because of a market set interest rate. Like 25 years ago. Today, bonds are highly priced and offer interest rates that do not even make up for inflation in the slightest.

    The Chinese are screwed too. They have 1.5 trillion dollars/bonds stocked up, and they are nothing more than worthless paper at this point.
  • tgc1, on 05/27/2009, -8/+37Well considering how much US debt the Chinese have purchased i'd keep my mouth shut if I were you. Just now they decide to dump it all. Or call them in.
  • mah2cent, on 05/27/2009, -5/+33First, the Chinese, owning a huge amount of our debt, is very rightly concerned about the FED printing money out of thin air. The FED's money inflation will ultimately lead to price inflation with a corresponding reduction in the purchasing power of the dollar. How much price inflation and how soon, is a matter of how soon those extra dollars that the fractional-reserve banks have been holding to build up their reserves. Once they build their reserves and start lending again, and the consumer starts spending again, it will come fast and could be devastating. Old Ben, the head of the FED thinks he can just shut off the tap to prevent rapid inflation by buying back the bonds he has been selling, but what happens if before he has a chance to act, the Chinese, Japanese, and our other foreign bond holders start flooding the markets trying to unload before they loose value? The result could very well be Hyperinflation, just like post WWI Germany and now Zimbabwe.
  • vbullinger, on 05/27/2009, -5/+33Yes, it is explicitly illegal. The Constitution says that the people (government) is to control the money supply and that it is to be pegged to only gold and silver.
  • govtdoesnotwork, on 05/27/2009, -1/+28That's what folks like to think, but for years China has been secretly accumulating gold and other similar stuff. I suspect they're not as tied to the USD as some would like to think, because the Chinese aren't stupid. Many of us suspect they own more gold than they just publicly admitted, too.
  • govtdoesnotwork, on 05/27/2009, -7/+33An upcoming audit may just tell us...But it's definitely not Constitutional, so I'd say "yes."
  • V3n0M, on 05/27/2009, -4/+30In Soviet Amerika, China screws you!
  • lorddazzer, on 05/27/2009, -3/+27Hey, they ain't bankrupt.
  • Risingashes, on 05/27/2009, -2/+26@Farfrom: For close to a decade China has been artificially pegging it's currency to a rate far below what it should be. This has resulted in their goods remaining ridiculously cheap at a cost to the Chinese consumer. It has also created the huge savings glut that was the cause of the credit boom in America.

    It would be simplistic to blame China for America's woes, but their policies have been undeniably reckless from the moment they began to gain global power.
  • nonymous666, on 05/27/2009, -6/+29Most people don't realize that most of the 'federal deficit' they hear about on the news is money that the fed has borrowed from China (and continues to borrow).

    One of these days, the U.S. is going to ask for yet some more money from China and the Chinese are going to say, "Umm, nope, I don't think so. Not this time. And not anymore for that matter.". And the U.S. is going to be *****.
  • synapz, on 05/27/2009, -5/+27Four words: "Meltdown" by Thomas Woods.

    Or you can watch this handy dandy video: http://www.youtube.com/watch?v=czcUmnsprQI
  • Numbski, on 05/27/2009, -0/+22It has been for a long while now by basic mathematical standards. Good thing we all know how to fudge numbers. :(
  • inactive, on 05/27/2009, -5/+26Yes, the Chinese are notorious for manipulating their currency and their marketplaces, but that wouldn't get much attention on digg because it's not as good a story as "the sky is falling!"
  • diggmehard, on 05/27/2009, -13/+33It's okay for China to undervalue their currency for the benefit of trade but it's not okay for US to print money.
  • Solkre, on 05/27/2009, -1/+20If it's not a government entity why can't the govt. audit it?
    They sure as hell can audit me or any company I know of.
  • ramonday, on 05/27/2009, -2/+21Nah, just print more money. Maybe that's how the Democrats...oh, wait, nevermind.
  • Qumahlin, on 05/27/2009, -2/+20"Nope. I would discontinue welfare and buy body armor for the troops with that money."

    Better yet, bring them home so they don't need body armor.
  • vbullinger, on 05/27/2009, -3/+21For once, I agree with you, but their concerns are valid and we shouldn't be just running the printing press, which will just make the situation worse.

    Then again, I shouldn't validate your "opinions" by responding to them, as you're just a huge, trolling douche.
  • dave122, on 05/27/2009, -3/+20We can blow them up 10 times, they can only blow us up twice, really doesn't matter at that point.
  • priegog, on 05/27/2009, -3/+20It's possible, hell, even probable, but that doesn't mean they don't get to complain when they are getting robbed. China has been saving the US's butt and way of life for a LONG time now, they deserve a little respect.
    And the fact that they actually gave a warning is HUGE. Actually unprecedented AFAIK. If the US keeps pulling that crap, China might decide it's time to turn the tables and turn America into the cheap manufacturing centre of the world, and for China to become a true developed country.
  • Greengoo, on 05/27/2009, -3/+20I for one will do my part.
  • mgb4tim, on 05/27/2009, -0/+16we file bankruptcy and have no further obligations to our debtors. Isn't that how we do it in America?
  • wvaughan, on 05/27/2009, -2/+18This could get ugly.
  • kolinkoolface2, on 05/27/2009, -4/+20http://en.wikipedia.org/wiki/Counterfeit

    The very person producing the counterfeit is the one that has the upper hand. Why do you think big banks are in bed with the fed? The fed is a private institution that congress nor the president has any control over. They should have a class offered solely on the federal reserve for college students. That will never happen though.
  • kolinkoolface2, on 05/27/2009, -3/+18audit the fed.... HR 1207
  • Unreal411, on 05/27/2009, -0/+14China is aware of our situation. They know that we will eventually collapse under our own system. And when we do, it will give them the perfect time to ask for its assets back... once the realization comes that we cant pay China back... what comes next?
  • Libertaire, on 05/27/2009, -4/+18May i suggest you read Friedrich Hayek's Denationalisation of Money: An Analysis of the Theory and Practice of Concurrent Currencies (1976)

    I believe you will find some answers to your questions. It's an interesting read.

    Also, from the same author: The Road to Serfdom
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