China: Without Weak Currency the U.S. Has No Hope Of Meeting Its Goals

Li Xiangyang, head of the Asia department at the Chinese Academy of Social Sciences, is quoted on the front-page of the People's Daily, as describing the United States as the currency war's "first maker of tomb figures,", meansinh someone who creates a bad precedent.

He added that continued intervention in currency markets by developed economies would deal a blow to global economic recovery. "The dollar's depreciation may appear to be market-driven. In reality, it is a depreciation colored by very strong, deliberate actions,"

Although not news, he also added that the Fed's announcement that it could launch another round of quantitative easing by buying bonds and other financial assets had been the key factor pulling down the dollar.

The motives?

They are "plain enough":

"Without a weaker dollar, the United States would have no hope of meeting President Barack Obama's goal to double exports in five years"

"Dollar depreciation will also serve longer-term interests by generating inflation and easing the debt burden that the financial crisis dumped on the U.S. government".

"If the global financial crisis was about nationalizing private debt, then in the post-crisis period the urgent need of the United States is to internationalize its national debt,".