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IPFS News Link • Dollar Meltdown The

Beijing Sounds Alarm About Dollar's Reserve Status

• https://www.zerohedge.com by Bloomberg macro comme

With all the money printing and borrowing, is this the beginning of a long decline for the dollar?

Clearly this is on the minds of some senior Chinese officials. Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, delivered a strong warning on the U.S. currency this week.

He made four points in a speech at the Lujiazhui Forum in Shanghai:

A. The Fed is the de facto central bank of the world. When its policy targets its own economy without considering the spillover effect, the Fed is "very likely to overdraft the credit of the dollar and the U.S."

B. The pandemic may persist for a long period of time, and countries keep throwing money at the problem with a diminished impact. "It is recommended that you think twice and reserve some policy space for the future."

C. There is no free lunch. Watch out for inflation.

D. Financial markets are disconnected from the real economy, and such distortions are "unprecedented." It's going to be "really painful," when the policy withdrawal starts.