A Critique of the Fed…from China

Watching America provides a daily translation of a selection of news stories and opinion pieces from around the world – all related to American policies both foreign and domestic.  Today, for example, it features articles from Algeria, Italy, Palestine, Hong Kong, and more.

Lincoln and Bernanke, both appropriately labelled Bankrupt
Lincoln, U.S. money, and Bernanke, all appropriately labelled "Bankrupt"

From a Chinese news source comes “The Fed Is Playing with Fire,” by Yang Mu, which points out some of the risks of Fed Chairman Ben Bernanke’s recent actions.  As the article explains, Bernanke has essentially chosen to have the Fed “fully exercise its function as a ‘money printer,'” a move which I would add is not terribly unexpected, but certainly damning for our economy.  Mu notes that this policy could lead to increased inflation and a lowering of international investors’ confidence in U.S. investment opportunities.  The critique as a whole hardly takes a free market position, but is interesting because it is, after all, from China, a country which has only seriously begun to liberalize some aspects of its own market in the last twenty years.  Out of the mouth of babes and sucklings…

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