U.S. ready to fly or secondary quantitative easing policy space to squeeze in China.

<P> This currency down as the most recent initiator of the competition, the United States may be implemented quantitative easing monetary policy is of widespread concern. .Yesterday (October 13), the Fed's Federal Open Market Committee's Sept. 21 meeting showed that members generally considered it necessary in the near future to take additional monetary easing policy, but to take measures required before its domestic economy .judged the situation more fully. .</ P> <P> QE imminent </ P> <P> minutes showed that the uncertainty of the U.S. economy being the concern of members. .Some members believe that additional monetary stimulus in the proposed policy, you should allow sufficient time, and judged the most appropriate policy tool. .Some other members considered that if the economic recovery and inflation did not return the expected standards, the Fed should take decisive action. .</ P> <P> the wording of the monetary policy statement, the members believe it should be that the Fed is ready if necessary, take additional measures to support economic recovery and return to mild inflation, which .implementation of policy is likely in the near future. .</ P> <P> on interest rates, almost all of the members agree that the current economic climate will make the federal funds rate at a longer time to maintain a very low level. .Federal Reserve monetary policy statement had earlier said it would maintain the federal funds rate over an extended period in the 0-0.25%, while also continue to invest in it has holdings of U.S. Treasury bonds. .</ P> <P> some analysts pointed out, overwhelmed by the international competitive action to cut interest rates and devaluation in the short term closure of the Chinese government to choose some policy space, the Government is more in the macro to be cautious withdrawal. .One obvious reason is that in other economies, if China were to raise interest rates when the zero interest rate, then this is equivalent to the hero of the world's hot money over the posted spread, while the latest data from the central bank show that the rate of hot money flowing into China is .accelerated in September China's new foreign exchange 289.565 billion yuan, representing an increase of 19.19% in August, breaking through April of this year's peak of 286.3 billion for the year. .</ P> <P> currency devaluation war </ P> <P> addition to the impact of China's monetary policy, monetary policy of quantitative easing to U.S. expectations, the dollar is to a new depression. .While the other end are rising yen, Australian dollar and other currencies, and the efforts of the Bank of Japan currency intervention and therefore come to naught. .</ P> <P> to the time of this writing, the dollar index was 77.056, compared with September 10 closing price of the dollar index 82.86, less than a month decline in more than 6%. .Weak dollar contributed to the rise in commodity prices, including gold, crude oil, copper prices, including the main varieties, since mid-September, there were varying degrees of backlash. .Resource stocks and inflation expectations appear universal shares rise, China's stock market also in the "Eleventh" ushered in a number of days after the rally. .</ P> <P> Nobel Laureate Professor Stiglitz pointed out that the Federal Reserve and European Central Bank launched its super-loose monetary policy, is the world into "chaos" and the Fed to restore liquidity into the economy ., the actual U.S. economy is not useful. .</ P> <P> competing currency exchange rates as the initiator of the game down, the United States actually began to accuse other countries, yesterday (Oct. 13), U.S. Treasury Secretary Timothy Geithner accuse the Chinese government's policy of intervention led to the appreciation of the renminbi .emerging market countries to launch a new round of capital controls and currency market intervention. .In an interview with U.S. media interview he said, "As China will artificially lower the value of the renminbi and other emerging market countries need to intervene in currency markets to ensure its competition with China is not at the disadvantage." </ P>.