This weekend Germany's finance minister "launched an extraordinary attack on policies being pursued in Washington," the Financial Times of London reported Sunday.[1] -- "Wolfgang Schäuble accused the U.S. of undermining its policymaking credibility, increasing global economic uncertainty and of hypocrisy over exchange rates," and said that the U.S. economic growth model is in a “deep crisis,” Ralph Atkins said. -- The Fed's QE2 led Schäuble to call U.S. policy "clueless" in a Der Spiegel interview. -- U.S. credibility in international finance has been undermined, he said, and added: "The Americans have lived for too long on credit, overblown their financial sector, and neglected their industrial base.” -- On Friday, China's deputy foreign minister also complained about U.S. "quantitative easing," indicating that U.S. policymakers have little hope of advancing their proposals at next week's G20 meeting at Seoul, the Financial Times said in another article.[2] -- On Thursday, the day after the Fed announced its plans, the Financial Times described the rising chorus of complaints from other nations as a "backlash" that raised "fears of a wave of protectionist trade and investment actions in response, a reaction that so far has been markedly absent from the global economy during the recession and recovery."[3] ...
1.
GERMANY ATTACKS U.S. ECONOMIC POLICY
By Ralph Atkins
Financial Times (London)
November 7, 2010
http://www.ft.com/cms/s/0/c0dca084-ea6c-11df-b28d-00144feab49a.html#axzz14fqZWmdH
Germany has put itself on a collision course with the U.S. over the global economy, after its finance minister launched an extraordinary attack on policies being pursued in Washington.
Wolfgang Schäuble accused the U.S. of undermining its policymaking credibility, increasing global economic uncertainty and of hypocrisy over exchange rates. The U.S. economic growth model was in a “deep crisis,” he also warned over the weekend.
[See link for the rest of the article.]
2.
CHINA TEES UP G20 SHOWDOWN WITH U.S.
By Alan Beattie (Washington), Geoff Dyer (Beijing), and Chris Giles (London)
Financial Times (London)
November 5, 2010
http://www.ft.com/cms/s/0/03567a28-e8a3-11df-a383-00144feab49a.html#axzz14ft3AdMg
China has curtly dismissed a U.S. proposal to address global economic imbalances, setting the stage for a potential showdown at next week’s G20 meeting in Seoul.
Cui Tiankai, a deputy foreign minister and one of China’s lead negotiators at the G20, said on Friday that the U.S. plan for limiting current account surpluses and deficits to 4 per cent of gross domestic product harked back “to the days of planned economies.”
[See link for the rest of the article.]
3.
BACKLASH AGAINST FED'S $600bn EASING
By Alan Beattie (Washington), Kevin Brown (Singapore), and Jennifer Hughes (London)
Financial Times (London)
November 4, 2010
http://www.ft.com/cms/s/0/981ca8f4-e83e-11df-8995-00144feab49a.html#ixzz14fv7hFMu
The U.S. Federal Reserve’s decision to pump an extra $600bn into the economy has galvanized emerging market central banks into preparing defensive measures and sparked criticism from leading global economies.
The Fed’s initiative, in response to rising concern about the weakness of the U.S. economy, has fuelled fears of a sharp drop in the dollar and a fresh flood of capital inflows into emerging markets.
China, Brazil, and Germany on Thursday criticized the Fed’s action a day earlier, and a string of east Asian central banks said they were preparing measures to defend their economies against large capital inflows.
Guido Mantega, the Brazilian finance minister who was the first to warn of a “currency war,” said: “Everybody wants the U.S. economy to recover, but it does no good at all to just throw dollars from a helicopter.”
[See link for the full article.]
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