If the last crisis was blamed on the U.S. financial system, the next one will likely be blamed on China given the building cacophony of yuan-dollar peg criticism.
Earlier it was Ambrose Evans-Pritchard.
Now the International Monetary Fund chimes in:
AFP: In a speech to a finance forum focused on rebalancing the world economy, Strauss-Kahn highlighted China’s efforts to boost private consumption, and said a stronger currency was “part of the package of necessary reforms”.
“Allowing the renminbi and other Asian currencies to rise would help increase the purchasing power of households, raise the labour share of income, and provide the right incentives to reorient investment,” he said.
“Higher Chinese domestic demand, along with higher US saving, will help rebalance world demand and assure a healthier global economy for us all,” he said, according to a copy of his speech received by AFP. Read the whole thing >>