Photo: Source: Financial World, July 11, 1989 Photograph by Alex Quesada/Matrix
In his speech last night, Bernanke accused China of throwing a monkey wrench into the global recovery and blamed China for slow global growth and a potential “End to the Tepid U.S. Recovery,” as Mish Shedlock puts it.
And as MarketWatch put it:
Federal Reserve Chairman Ben Bernanke put aside traditional central bank niceties and launched a direct attack on the slow pace of China’s steps to strengthen its currency.
PTJ said as much late last month, when he wrote this:
What is remarkable is the lack of any concrete policy initiative in the US to change this. For several years, the US Treasury has threatened to name China as a currency manipulator 2 but has always found a basis for avoidance.
If, as Mish Shedlock predicts, Congress takes Bernanke’s speech as a call to call China a currency manipulator, it’d probably make PTJ a very happy man, considering that he called for a re-evaluation of Chinese currency just last month.
The Chinese have set the RMB/USD peg artificially low, he wrote, and it’s inevitable that soon the US, the main buyer of China’s exported goods, will no longer be able to afford them – because, he writes, “China’s export strategy is completely unsustainable.”
HOPEFULLY, Bernanke’s speech will go somewhere and it will make PTJ want to stay in the biz a little bit longer. In which case, thank you Bernanke!