China Says Global Recession Imminent
The Vice-Premier of China, Wang Qishan, forecasts a grim outlook for the global economy.
“Global economic conditions remain grim, and ensuing economic recovery” is China's main concern. Wang is China's financial and trade policy overseer. He is absolutely certain that a long-term global recession is going to happen. More importantly, he believes that China must look out for the Chinese people.
Wang wants China and the United States to work together for balanced economic growth. Presumably, Wang is talking about balanced United States and Chinese economic growth.
“An unbalanced recovery would be better than a balanced recession.”
It is arguable that Wang believes in this statement that it is better for China's economy to recover regardless of what happens to the economy in the United States. For it appears that Wang stated it is better for the United States to have an economic recession and China to recover, than for both countries to have an economic recession.
The United States and other countries around the world have repeatedly asked China to stop manipulating it's currency by fixing it to the United States dollar. Of course, the United States has dirtied its hands in response to China by printing trillions of dollars in currency, otherwise known as Quantitative Easing.
Perhaps the Chinese should review American history. John Connally, President Nixon's Treasury Secretary, once told a delegation of Europeans worried about exchange rate variances.
“The dollar is our currency, but your problem.”
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