Xiangyang Li, the director of the Asia Pacific Institute of the Chinese Academy of Social Sciences, published a commentary article in the People’s Daily Overseas Edition on the ongoing global currency depreciation war. He said that the U.S. dollar is the culprit in the currency exchange war.
While the U.S. dollar appears to be market driven, in reality, there is a strong element of active devaluation. He suggested that international society should be aware of the phenomenon. Li believes that, in the long run, the U.S. dollar’s large scale depreciation will help the U.S. transfer its debt. If the international financial crisis has brought about the nationalization of private debt, then the United States urgently needs to internationalize its debt. Even though the U.S. may not admit its intention to convert its debt, it cannot avoid such a consequence.
Source: People’s Daily, October 14, 2010
http://opinion.people.com.cn/BIG5/40604/12946061.html