The big news last week was a speech by Zhou Xiaochuan, the governor of China’s central bank, calling for a new “super-sovereign reserve currency.”Op-Ed Columnist - China’s Dollar Trap - NYTimes.com
The paranoid wing of the Republican Party promptly warned of a dastardly plot to make America give up the dollar. But Mr. Zhou’s speech was actually an admission of weakness. In effect, he was saying that China had driven itself into a dollar trap, and that it can neither get itself out nor change the policies that put it in that trap in the first place.
Saturday, April 4, 2009
Op-Ed Columnist - China’s Dollar Trap - NYTimes.com
Posted by Anthony J. Pennings, PhD at 8:48 AM