The Three Organizations Said Currency War Increased Protectionism
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World Trade Organization (WTO), Organization for Economic Cooperation and Development (OECD) and three agencies in the upcoming United Nations Conference on the report warned the Group of 20 summit, caused tension in the exchange rate, increasingly global economy is facing threat of protectionism. At the same time there are indications that the root causes of recent global currency war is the weak dollar, Europe is no longer follow the U.S. monetary claim in the G 20 Summit of the United States will jointly launch an attack on other countries attempt to RMB probably not contribute much.
Increased protectionism in the exchange rate disputes
Three major international organizations in the G20 for the summit in Seoul next week commissioned its written report issued by trade and investment protectionism, the threat warning.
Understand the contents of the report, a source said that "exchange rate and current account imbalances, protectionist pressures that significantly enhanced." The report shows that high-level policy makers increasingly concerned about the exchange rate disputes.
WTO Director General Pascal Lamy said last month that the dispute could threaten the trade exchange and economic recovery. The comments suggesting that the assessment of WTO trade significant changes in the environment. G20 in previous reports, WT O has said basically under control of the G20 countries protectionism. The source said that Lamy, OECD Secretary-General of Goliath and the Director-General of UNCTAD Supachai would claim G 20 countries, has continued since the last summit, resist protectionist pressures.
But they also said that many G20 countries, high unemployment and macroeconomic imbalances between countries, coupled with the exchange rate tensions are exacerbated protectionist pressures.
They urged the G20 leaders to address global trading system, the threat to stability, because that money or start chasing comparative advantage. Three agencies will also be pointed out that trade and investment, the number of new restrictions only in the slow increase, but at the same time, the implementation of emergency measures during the crisis as the crisis subsides, but did not withdraw. They will be called G 20 summit will give priority to urgent measures to withdraw.
It is reported that UNCTAD will be held on the evening of November 4 published a report on the measures of the investment, WTO trade measures will be released report. At the same time three international agencies will jointly sent a letter to G20 national leaders.
The effectiveness of quantitative easing in the United States dilution
In addition, G20 Member States also pay close attention to communication, to better coordinate the response to the recent exchange rate of the dispute, the concern is that Europe stands for in the exchange rate becomes more consistent with the United States.
France and China will be Chinese President Hu Jintao during his visit to France to discuss potential reform of the international monetary system. France from November 13 took over the Group of 20 rotating presidency. French President Nicolas Sarkozy and Hu Jintao, eager to reach a consensus on a range of issues. These issues will be held in France during the presidency of G 20. The article also analyzed, Hu Jintao's trip to Europe will want to contribute to Seoul next week before the summit, G 20 to reduce the pressure on the renminbi.
Widely expected the U.S. to win over the summit in the G 20 countries join forces to put pressure on the RMB exchange rate, but recently the Europeans often repeat the Nixon-era U.S. Treasury Secretary John Connally said those famous words: "the dollar is our currency, your problem. " The crux of the current exchange rate crisis is precisely the problem lies in the dollar itself.
Years after the debt crisis broke out in Europe, the European leader in the next fiscal tightening in Germany and the United States continue to loose all go their separate ways, have produced friction: the United States that unilateral tightening of Europe with the euro weakened to withstand the U.S. recovery will make better great pressure. So the United States triggered a new round of quantitative easing monetary war. These cases in 10 months G 20 meeting of finance ministers has been clearly reflected. G 20 meeting of the United States would like to take Ying Peng, once again playing its dominant power, but unfortunately touched down very unsatisfactory results, evidence that the U.S. may have the final say and orders the world's era has ended, not only tough response to emerging economies, Germany is also not polite . Germany, the United States in the 80's was forced to revalue, but Things have changed. Meanwhile, China has become the object of the United States to launch a siege of the pressure reduction. |
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Jessie Stone
Submitted
2010-11-07 03:31:56 |
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