金融英语：G20 summit overshadowed by U.S. monetary easing
SEOUL, Nov. 9 (Xinhua) -- Group of 20 (G20) policymakers are meeting in Seoul Thursday amid signs of renewed regional political tensions over a further round of U.S. monetary easing.The decision by the U.S. Federal Reserve to print extra money to buy 600 billion U.S. dollars in Treasury bonds has triggered strong concerns and resentment worldwide and could trigger a currency war and intensify trade conflicts amid a staggering global economic recovery.
China's Vice Minister of Finance Zhu Guangyao said Monday China was concerned with and had questions about the U.S. new monetary policy, and would discuss it candidly with the U.S., the issuer of the main international currency, at the upcoming G20 summit in the capital of South Korea.
The new aggressive round of money easing, described by some economists as a "helicopter drop of dollars," is expected to help the United States stay competitive in global trade.
However, it also drew scathing remarks globally with many accusing the U.S. of instigating of a currency war by deliberately encouraging a sell-off of dollars on international currency markets.
"The expansive monetary policy of the U.S. is worrying me because an excessive increase of money supply is also an indirect manipulation of the dollar rate," German Economic Minister Rainer Bruederle said in a recent interview with German weekly Welt am Sonntag.
German Finance Minister Wolfgang Schaeuble told German weekly Der Spiegel that "it doesn't fit together when the U.S. is accusing China of foreign exchange rate manipulation and afterwards artificially pushes down the dollar rate by printing money."
"With all due respect, my feeling is that the United States is at a loss," Schaeuble added, warning the Fed's capital-injection push would "create extra problems for the world" and lead to "long-term damage."
The world's emerging markets, likely to bear the brunt of the move, are fearful that a flood of "uncontrollable" investor cash will swamp their economies.
Russia Deputy Finance Minister Dmitry Pankin said Saturday the latest currency measures taken by the Fed were dangerous.
"By solving its own problems by increasing money mass, the United States is generating new ones," Itar-Tass quoted Pankin as saying.
He warned that the easing measures might lead to the emergence of "financial bubbles" and an imbalance in currency exchange rates, which is already happening with the Japanese yen.
"It is not the U.S. but developing economies that can be affected," Pankin said.
South African Finance Minister Pravin Gordhan said Friday the decision undermined the spirit of multilateral cooperation that G20 leaders had fought so hard to maintain during the current crisis. It also ran contrary to the spirit in which G20 Finance Ministers and central bank governors met recently in South Korea.
"Developing countries, including South Africa, will bear the brunt of the U.S. decision to open its flood gates without due consideration of the consequences for other nations," he said in a statement.
Though U.S. Federal Reserve Chairman Ben Bernanke claimed the primary tasks of the "quantitative easing" were stabilizing prices and creating jobs in America, the global impact of the measures can by no means be ignored as the policy is very likely to have a considerable spill-over effect or even ruinous consequences in other economies.
Economists warned that irresponsible macro-economic policies by the most influential members of the G20 would only sap the global economic recovery and undermine the role of the bloc as a platform for global economic cooperation.
While the U.S. is rattling the whole world by kicking its printing press into full gear, it has also reminded the world of a famous saying of John Connally, former president Richard Nixon's secretary of the Treasury, who told Europeans worried by his decision to split the dollar from gold in 1971 that the greenback "is our currency, but your problem."
金融英语：G20 summit overshadowed by U.S. monetary easing
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