So dangerous and reckless has the US become that Stephen Roach, the non-executive chairman of Morgan Stanley Asia, told Emerging Markets in a telephone interview this past week that,“It seems to me that the scale of this policy blunder is painfully reminiscent of the Great Depression in the 1930s.”
US urged to end ‘phoney’ China currency war
“If we continue to beat China up on the phoney issue of its currency, we run the risk of shooting ourselves in the foot,” Stephen Roach, the non-executive chairman of Morgan Stanley Asia, told Emerging Markets in a telephone interview.
Roach, a senior fellow at Yale University, argued that the importance of expanding market access for US companies in China far “outweighed” the “bogus” currency issue. “The Sino-US relationship is deeply troubled and it reflects the unprecedented pressures in the US, such as employment and wage stresses, as well as misdirected policies in Washington.”
He warned that if Romney made good on his threat to label China a currency manipulator, tit-for-tat trade sanctions between both nations would kick in, which, in extremis, would reinforce the allure of Beijing’s “trump card” - dumping a portion of its huge holdings of US Treasuries,.
Roach, a senior fellow at Yale University, argued that the importance of expanding market access for US companies in China far “outweighed” the “bogus” currency issue. “The Sino-US relationship is deeply troubled and it reflects the unprecedented pressures in the US, such as employment and wage stresses, as well as misdirected policies in Washington.”
He warned that if Romney made good on his threat to label China a currency manipulator, tit-for-tat trade sanctions between both nations would kick in, which, in extremis, would reinforce the allure of Beijing’s “trump card” - dumping a portion of its huge holdings of US Treasuries,.
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