Where Chinese And Americans Agree: An Irrational Fear Of The Fed
by Robert McTeer
April 08, 2011
If Ben Bernanke's policies haven't created significant money supply growth in the U.S., how can they be sparking inflation in China?
I recently visited China—Shanghai and Hangzhou—for a too-brief five days. I spoke to investor groups about the U.S. economy and its parallels to and interrelationships with China and answered tons of questions from investors and the press about—guess what?—QE2. Why was the Federal Reserve printing so much money, exporting inflation to China and other countries, and putting strains on exchange-rate relationships? When will QE2 end and will it be replaced by QE3? These are, of course, the same questions I get from U.S. audiences, and my answers were met with about the same degree of skepticism.