Currency clouds of war who is containing China.

<P> "Rate war has erupted," since the September 27 Finance Minister's statements reported in the newspapers in Brazil, the field of international exchange rate at daggers drawn more and more wrestling. .</ P> <P> U.S. expense of others, the implementation of the second round of the quantitative easing policy, to win over allies to force the Chinese yuan appreciation; Brazil, India and other emerging economies, as well as Japan, Korea and other countries are also competing for their exchange rate intervention, global financial market turmoil again. .The forthcoming Group of 20 (G20) summit in Seoul, will become the main battlefield of the currency war? .</ P> <P> be appreciated panic </ P> <P> "3 quarters of this year, the dollar further, with the Fed's loose monetary policy implementation, led to the relative appreciation of the currencies of other countries, leading to further expansion of the money market disturbances .even worry about the currency appreciation over into panic. "Journal of Finance, International Business and Economics Dean Professor Ding Zhijie of times weekly, told reporters that the financial crisis in the United States shifted outwards under the pressure of the background, central banks were forced to intervene in the exchange rate. .</ P> <P> 9 months, to curb the soaring Japanese yen, the Japanese government intervention in currency markets to spend 25 billion U.S. dollars. .</ P> <P> 10 4, the exchange rate in Brazil officially started blocking action, investments in its territory of foreign investors to double the tax levy and to authorize the Treasury to buy billions of dollars in advance of foreign exchange to prevent currency appreciation. .</ P> <P> in South Asia, with the "BRIC" India and joined one of the intervention force. .Indian rupee in the month, up 5.2% appreciation rate. .India's central bank through the purchase of nearly 4 billion dollars in foreign exchange, to prevent further appreciation of the exchange rate. .</ P> <P> In addition, Thailand, Colombia, Peru and other countries have government intervention rate. .</ P> <P> "the source of the currency of war in the United States, the United States serving its own interests, depreciation of the dollar, the dollar is the currency of this global war, the main culprit." Research Institute of Chinese foreign exchange investment of Die Zeit, said Tan Yaling .. .</ P> <P> analysts pointed out that this money is the essence of war, the slow economic recovery, in response to high domestic unemployment situation and domestic political pressures, the Fed printing money to increase horsepower brewing, the implementation of a new round of quantitative easing .policy as a panacea, in order to achieve rapid economic recovery. .</ P> <P> managing director of Credit Suisse Asia chief economist Tao Dongzhuan Wen said, "driving down the dollar might benefit the U.S. economy, but the practice expense of others is bound to provoke counter-other countries, the exchange rate world .War has been an undeclared war. "</ P> <P>" it is difficult to predict the overall impact on the world economy, but the linked exchange rate system in Hong Kong because it is directly pegged to the dollar, six months after the imported inflation are likely to arise. Other .East Asian countries also suffered heavy losses, such as Thailand and Malaysia exports will be affected. "The Chinese University of Hong Kong Faculty of Business Administration Dr. Zhang Weihua told reporters on times weekly. .</ P> <P> British "Financial Times" Martin Wolf, chief economist, said in the column, "The current situation bluntly that the United States to let other parts of the world inflation, which hopes that the U.S. deflation. The United States will win .No doubt, because it has endless 'ammunition' - U.S. printing press. "</ P> <P> loose in the United States to further relax monetary policy and expectations, the dollar has dropped more than 8 months to the lowest. .70s of last century, the U.S. Treasury Secretary John Connally (JohnConnally) U.S. dollar fluctuations in Europe had worried that the dollar is "our currency, your trouble." .</ P> <P> Today, these words have become a true portrayal of the exchange rate disputes. .</ P> <P> Who containment of China </ P> <P> "has evolved into the current exchange rate exchange rate of the war, U.S. dollar and non-dollar countries, the antagonism between the countries." Societe Generale Bank (601166) Chief Economist .Lu political commissar of the family accepted an interview with Die Zeit, said. .</ P> <P> this one, against the dollar and the renminbi has become the focus of world attention, the United States to force the exchange rate of RMB appreciation will push the high risk of war. .</ P> <P> Lu political commissar of the view that this war is the essence of the exchange rate imbalance between developed economies, the adjustment is the best tool for tightening the compression of domestic demand, however, these policy measures will inevitably lead to strong opposition from domestic voters, so the United States .decision-making selection pressure to adjust the structure of smaller ways, namely, by the depreciation of the currency of other currencies "was appreciated." .</ P> <P> as well as from the U.S. midterm elections less than a month, the RMB exchange rate issue has become the focus of U.S. domestic politics. .U.S. economist Paul Krugman calls the mainstream media such as to exert pressure on China and the U.S. government and Congress were to act as white face and red-faced, big issue. .September 29, the U.S. House of Representatives considered and adopted the special tariff bill The bill requires that unless the Chinese improve the RMB exchange rate against the U.S. dollar, or goods from China will be heavily taxed. .</ P> <P> international opinion against the Chinese yuan revaluation appeals and accusations are constantly upgraded. .</ P> <P> "10 月 9 日, G7 countries, to avoid the formation had reached a consensus on competitive devaluation, and to reach a consensus to urge the RMB appreciation." Sealand Securities Institute, deputy director Zhao Yongjian accepted an interview with Die Zeit .said, "If the formation of the exchange rate war, the most affected could be China." </ P> <P> 6 19, the People's Bank of China announced to restart the exchange rate reform, as of October 15, central parity of 6.6497 yuan against the dollar .compared with 2.59% appreciation over the same period last year, the highest since the exchange reform to restart a new high, with Sept. speed of more than 1% monthly. .</ P> <P> the same day, although once again delay the release of the U.S. Treasury semi-annual currency report for the RMB, but the statement that if the renminbi is able to maintain more than 1% in a single month, the undervalued exchange rate can be corrected .. .</ P> <P> Soros called on the international financial giant a 10% appreciation of RMB each year to help the world avoid the currency war. .</ P> <P> China Customs import and export data released in September showed that China's trade surplus 16.8 billion the month, to 5-month low. .Although the decline in exports, but the third quarter of the size of China's new foreign exchange reserves hit a new high, to 2.6 trillion U.S. dollars. .These data will make China the G20 summit in November is facing more pressure. .</ P> <P> analysts believe that although the U.S. is to avoid China a "currency manipulator", to avoid the deterioration of the impasse between the two countries, but actually want to exchange rate by the G20 summit in Seoul to discuss, to the joint European Union, .Japan to pressure China. .</ P> <P> no winners in war </ P> <P> Brazilian Finance Minister Mantega suggested that during the G20 summit of world leaders should be consultations to develop a similar 1985 "Plaza Accord" of the agreement, to bind .national exchange rate policy. .</ P> <P> "Running out at the current exchange rate, the vaguely disturbing emergence of a sound, that is, in some emerging economies also have added to the United States urged the camp of RMB appreciation." Commissar, said Lu. .</ P> <P> political commissar Lu also pointed out that the U.S. must guard against use of "combination tool" to promote the appreciation of the renminbi. .</ P> <P> G20 summit is an important agenda for the reform of the international monetary system, enhance the voice of emerging market countries. .Geithner made the United States, IMF reform, share and exchange rate policies directly related to the emerging economies a greater say if you want to have to let go of tight currency control. .</ P> <P> "excessive focus on the yuan is dangerous, will make the situation worse." Peking University Guanghua School of Management finance professor Michael Pettis (MichaelPettis) appeal for countries not to overreact on the RMB. .He pointed out that the rapid appreciation of the yuan would lead to China's export industry into bankruptcy, making the high unemployment rate, is not conducive to promoting consumption. .</ P> <P> latest issue of the "Economist" magazine cover story pointed out that countries should remain calm, do not count on quick fixes, not to launch a trade war with China. .</ P> <P> "rate war is a zero-sum game, there are no winners." Assistant researcher at the State Council Development Research Center of times weekly in winter Zhang Yi, told reporters that "the root of the dispute is the current exchange rate of global imbalances, and global trade imbalances are not .China's exports caused by the excessive, the parties need further coordination. "</ P> <P> He said that China sold to European and U.S. manufacturing production are still in the low-end products, OEM production of more of these in Europe and America .itself does not produce, in addition, the vertical division of labor in the world to deepen today, many are foreign company, and for the packaging and transportation to bring a large number of U.S. service sector jobs. .Suppress China's exports, only those manufacturing to cheaper labor in Southeast Asia and other countries, and not directly caused the rise in U.S. employment. .</ P> <P> "Now is the era of globalization, trade between countries depends more than ever. The United States by forcing the RMB appreciation is difficult to achieve its objective." Zhao Yongjian also think. .</ P> <P> no winners in war </ P> <P> Brazilian Finance Minister Mantega suggested that during the G20 summit of world leaders should be consultations to develop a similar 1985 "Plaza Accord" of the agreement, to bind .national exchange rate policy. .</ P> <P> "Running out at the current exchange rate, the vaguely disturbing emergence of a sound, that is, in some emerging economies also have added to the United States urged the camp of RMB appreciation." Commissar, said Lu. .</ P> <P> political commissar Lu also pointed out that the U.S. must guard against use of "combination tool" to promote the appreciation of the renminbi. .</ P> <P> G20 summit is an important agenda for the reform of the international monetary system, enhance the voice of emerging market countries. .Geithner made the United States, IMF reform, share and exchange rate policies directly related to the emerging economies a greater say if you want to have to let go of tight currency control. .</ P> <P> "excessive focus on the yuan is dangerous, will make the situation worse." Peking University Guanghua School of Management finance professor Michael Pettis (MichaelPettis) appeal for countries not to overreact on the RMB. .He pointed out that the rapid appreciation of the yuan would lead to China's export industry into bankruptcy, making the high unemployment rate, is not conducive to promoting consumption. .</ P> <P> latest issue of the "Economist" magazine cover story pointed out that countries should remain calm, do not count on quick fixes, not to launch a trade war with China. .</ P> <P> "rate war is a zero-sum game, there are no winners." Assistant researcher at the State Council Development Research Center of times weekly in winter Zhang Yi, told reporters that "the root of the dispute is the current exchange rate of global imbalances, and global trade imbalances are not .China's exports caused by the excessive, the parties need further coordination. "</ P> <P> He said that China sold to European and U.S. manufacturing production are still in the low-end products, OEM production of more of these in Europe and America .itself does not produce, in addition, the vertical division of labor in the world to deepen today, many are foreign company, and for the packaging and transportation to bring a large number of U.S. service sector jobs. .Suppress China's exports, only those manufacturing to cheaper labor in Southeast Asia and other countries, and not directly caused the rise in U.S. employment. .</ P> <P> "Now is the era of globalization, trade between countries depends more than ever. The United States by forcing the RMB appreciation is difficult to achieve its objective." Zhao Yongjian also think. .</ P>.