The US Wages A Currency War against China
2010-12-31 00:00:00SongHongbing
China’s foreign Trade 2010年22期
The US dollar， in nature， is issuedon debt mortgage， where each dollarbill in circulation represents one's debtto the banking system. He who holdsthe bill， actually an evidence of thecreditor's rights， claims as creditor ofthe dollar debts. Pursuing \"quantita-tive easing\"， the US Federal Reserveis massively monetizing its mega-debtby purchasing Treasuries along withbonds and bills from financial institu-tions. Thus， the huge amount of addi-tional US dollars sends the value of billsheld by the original creditor plunging.Meanwhile， the \"asset toxin\" in the newdollar issues is mounting sharply.
