Friday, December 31, 2010
Internationalization of Renminbi-II
Sin-ming Shaw published an interesting article in a Japanese newspaper, titled “Crony capitalism has taken root in America” (19 May 2009 Japan Times). Shaw criticized Obama’s “stress tests” as the crony capitalism that will corrupt Third World counties to the U.S.A. Just like former treasury secretary Robert Rubin, who served as a director and senior counselor at Citigroup, (which is almost bankrupted), Treasury Secretary Timothy Geithner and Obama’s chief economic adviser Larry Summers are trying to stabilize prices of bank shares in the stock market, but not cleaning up crony capitalism on the Wall Street. In addition, Obama continues to print US dollars as part of his monetary policy. Harvard economist Martin Feldstein has warned that inflation is going to threaten the American economy after 2010 (23 April 2009 Bloomberg News). No wonder the Chinese are worried about the value of the green bucks. Will the Chinese Renminbi be the major currency in the Third World when the dollar faces high inflation?