China warns Federal Reserve over ‘printing money’
China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed’s direct purchase of US Treasury bonds.
Richard Fisher, president of the Dallas Federal Reserve Bank, said: « Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature. »
« I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States, » he told the Wall Street Journal.
His recent trip to the Far East appears to have been a stark reminder that Asia’s « Confucian » culture of right action does not look kindly on the insouciant policy of printing money by Anglo-Saxons.
The Oxford-educated Mr Fisher, an outspoken free-marketer and believer in the Schumpeterian process of « creative destruction », has been running a fervent campaign to alert Americans to the « very big hole » in unfunded pension and health-care liabilities built up by a careless political class over the years. His warning comes amid growing fears that America could lose its AAA sovereign rating.