"with all due respect, US policy is clueless."

[IndyPragmatist]

German Finance Minister Wolfgang Schaeuble said the US would not solve its problems, but create "extra problems for the world" instead.

Some countries fear that the US Federal Reserve's move could hurt their exports by making their currencies stronger.

China's Central Bank head Zhou Xiaochuan urged a reform of the international currency system.

He did not elaborate how the system should be changed.

The US central bank announced on Wednesday that it would spend $600bn to buy government bonds, in the hope that the cash injection can kickstart the country's economy.

However, this weakens the dollar, boosting US exports while making imports more expensive.
.....

"If the domestic policy is optimal policy for the United States alone, but at the same time it is not an optimal policy for he world, it may bring a lot of negative impact to the world," said Mr Zhou.

"There is a spill over."

China's Vice Foreign Minister Cui Tiankai said the Federal Reserve had the right to take steps without consulting other countries beforehand, but added: "They owe us some explanation."

Germany's finance minister Wolfgang Schaeuble said on German television that "with all due respect, US policy is clueless."
"It is not that the Americans have not pumped enough liquidity into the market and now to say let's pump more into the market is not going to solve their problems."


http://www.bbc.co.uk/news/business-11697483 China and Germany express concern over US Fed move

[TomClash]

1. This article is laughable

For any Chinese government official to hint at "currency reform" is a joke. Reform starts and ends with devaluation. The Yuan should be devalued by about 50%. Instead the comparatively strong dollar/Euro/Yen is artificially subsidizing Chinese exports. The US has been trying to reform the currency system for years and the repulsive Chinese government has resisted any reform repeatedly.

The Germans should worry about their EU obligations before they criticize the US.

[RickFromMN]

4. I assume you mean the Yuan should be increased in value, not decreased?

[TomClash]

6. Yes, I meant the dollar should be devalued

against the Yuan.

[IndyPragmatist]

5. i agree somewhat...

China is being very hypocritical, but they are still correct. Currency manipulation is wrong and will just create an artificial trade bubble. Fiat currencies are very unpredictable, and when you have multiple currencies being manipulated, it puts the entire market at risk. Somebody's "bubble" will burst, I just hope it isn't ours. (Although, China and Japan losing would hurt us also)

[TomClash]

7. China already manipulates its currency

If it floated freely, its value would be much higher and so would its GDP.

[BlueJac]

2. The US is clueless Right Wing idiots.....

[DCKit]

3. If they're squawking, it may be a good thing.

But I don't see the advantage for the average folks.