nswer: no and no way, per central bank independence and in alignment with rule of law by making up laws.
What kind of laws is the Chinese Central Bank making up?
They peg the value of the Yuan to the US Dollar, avoiding free market mechanisms and preventing equalization of trade deficits through adjustments in currency valuations.
Not answerable to anyone but the politicos in Bejing.
At least Bernanke is answerable to an elected Congress, which has to confirm his nomination.
And I agree with you about Wall St abuses, especially with regard to the MBS and CDS derivatives markets.. And those abuses were facilitated, in large measure, by the distortion created by "excessive Chinese savings" (mercantilist "manufacturer financing) by China and other countries. They wanted to export, hoard their profits in US Treasuries, thereby keeping our interest rates artificially low, financing our excesses, and growing their own industries at the expense of the US.
IMO, China has plenty of abuses going on, but there are insufficient market forces available to provide the necessary correction. That's why you have houses and office buildings sitting empty, or being torn down as soon as they are built, in order to create some artificial image of economic prosperity. But it doesn't generate an real ROI that makes for a sustainable economy.
We're not the only ones who will be "paying the piper" when it comes to financial abuses and distortions.
Hawk |
