China Is Already Scared Of QE3, And Is Blaming The US For Its Inflation mess

china super market grocery

Chinese State Council researchers are afraid that more quantitative easing from the U.S. could push up commodities prices in China’s already inflating economy.

Via Shanghai Daily:

“We are following closely whether the United States will introduce QE3, because we believe it will have a major impact on China’s economy,” said Yu, director-general of the Development Research centre’s Department of Macroeconomic Research. “The drastic rise in commodity prices caused by the devaluation of the US dollar will have a major impact on inflation, on economic growth and on Chinese people’s daily lives.”

Yu also said that initiating another QE3 could damage the U.S. economy over the long haul so it should, “be careful.” He didn’t recommend anything specific about what the China would do, though if the U.S. economy worsened- only that China could reduce risks by restructuring its portfolio of foreign reserves.

Meanwhile, some Chinese consumers agree that the U.S. is responsible for higher prices they see at grocery stores.

Via Channel News Asia:

“The source of China’s inflation is America, they are printing too much money,” Zhan Tiehui, 50, told AFP as she clutched plastic bags full of vegetables in a Beijing super market.

That’s a good thing for the Chinese government- a spike in food prices are generally cited as the reason for the Tianmen Square riots.

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