Why is Hu Jintao talking the dollar down?

[Optionpro007]

Anyone care to comment? I don't think this frontal approach is healthy.

BEIJING—Chinese President Hu Jintao emphasized the need for cooperation with the U.S. in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a "product of the past" and highlighted moves to turn the yuan into a global currency.
http://online.wsj.com/article/SB100...0.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsSecond

 

[bond_trad3r]

Not healthy for US, yes.

 

[Optionpro007]

Talking down you best costumer is a bad idea. I can't see what is behind this move.

 

[dandxg]

Quote from Optionpro007:

Talking down you best costumer is a bad idea. I can't see what is behind this move.

1. Ego
2. Flexing their muscle as they newest superpower.
3. Does seem a bit short sided as they will lose a big part of their export business.

 

[krazykarl]

Quote from Optionpro007:

Anyone care to comment? I don't think this frontal approach is healthy.

BEIJING—Chinese President Hu Jintao emphasized the need for cooperation with the U.S. in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a "product of the past" and highlighted moves to turn the yuan into a global currency.
http://online.wsj.com/article/SB100...0.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsSecond

Then why not float the yuan? This is all-talk until the yuan can stand on it's own.

 

[jem]

He was complaining the fed is devaluing the dollar by purchasing bonds. Which it is. He is right.

But, he is also a wimp. Because this inflation would not hurt him nearly as much (especially going foward) if the yuan were not pegged to the dollar. When you peg you surrender control to the Fed.

As the poster before stated.

 

[piezoe]

Reality hits home!