US could trigger new crisis

[theDoors]

Nov 12, 2010 FALLOUT OF US CASH INJECTION
http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_602429.html

YOKOHAMA - HONG Kong's leader warned on Friday that a move to inject billions of dollars into the ailing US economy could inflate Asian asset bubbles and trigger a repeat of the region's 1997-98 crisis.

Chief executive Donald Tsang said there was a risk of 'unprecedented market turbulence' in currencies, bonds and stocks and warned that Hong Kong is ready to take new anti-speculative steps to cool its over-heated property market.

'I am very much concerned about the impact of the US second round of quantitative easing on Asian economies,' Tsang said, referring to the Federal Reserve's controversial US$600 billion (S$779 billion) attempt to reflate the US economy.

Critics worry the cash surge will not only further dilute the value of the dollar but add to the flood of money that is chasing higher returns in Asia and dangerously inflating stock, bond and property markets.

'This has increased the risk of asset bubbles, which will impact on our financial stability as well as regional and global economic growth,' Mr Tsang said at a business forum in Yokohama, Japan.

The popping of 'emerging bubbles in different pockets' of Asia's securities and property markets would be 'highly infectious', he said, warning: 'And the end result is you can see a second wave... similar to the one we had in 1997 and 1998, when there was an over-exuberance in our markets. This is exactly the case now.'

Copyright © 2007 Singapore Press Holdings.

 

[congo9]

来吧，现在东西怎么贵。应该给他们下下！

 

[Dreamer1]

Why worry,the rising great Asians are all enjoyinh record high in stock markets,assets,houses,who is compalining?

Every dog has his day,especially for our long suffereing PRC brothers/sisters,let them enjoy thier prosperity man

 

[theDoors]

U.S. pursuing dollar weakening policy: Greenspan
http://www.reuters.com/article/idUSTRE6AA00320101111

Former Federal Reserve Board Chairman Alan Greenspan listens to opening statements as he testifies on Capitol Hill, April 7 , 2010.

Credit: Reuters/Kevin Lamarque

LONDON | Wed Nov 10, 2010 8:33pm EST

LONDON (Reuters) - The United States is pursuing a policy of weakening its currency, driving up exchange rates in the rest of the world, former Federal Reserve Chairman Alan Greenspan warned on Wednesday.

In a guest column for the Financial Times, Greenspan also said that as China holds down the renminbi, the upward pressure on other currencies risks a return to widespread protectionism.

"America is also pursuing a policy of currency weakening. The suppression of the renminbi and the recent weakening of the dollar are, of necessity, producing firming exchange rates in the rest of the world," Greenspan wrote ahead of the Group of 20 summit in Seoul on Thursday. "Something has to give in this arena of zero-consolidated current account balances."

The G20 summit has been pitched as a chance for leaders of the countries that account for 85 percent of world output to prevent "currency wars" and a rush to protectionism that could imperil global recovery.

Greenspan said while the global trading system can tolerate a modest amount of protection, "the flaws in the global trading system are large and worrisome."

"If the G20 is serious in pledging to sustain open multilateral trade and the international financial system that fosters it, it should be willing to forgo an element of sovereignty to achieve net gains for all," Greenspan wrote.

(Reporting by Karolina Tagaris; Editing by Andrew Hay)
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[Agoraphobic]

There'll always be rich and poor in the US, no matter how bad it gets.

There'll always be rich and poor in PRC, no matter how good it gets.

Why should anyone be loyal to any country? They take care of you? Nah, you take care of yourself.

Cheers!