Stephen Roach, chairman of Morgan Stanley Asia, criticized Paul Krugman’s comments that the U.S. should consider a 25% surcharge on Chinese goods, Roach said:
"They don’t want to look in the mirror. America doesn’t have a China problem. It really has a savings problem. America has the biggest shortfall of national savings of any leading country in modern history. And when you don’t have savings you have to run current account deficits to import surplus savings from abroad and run massive trade deficits to attract the capital. Last year America ran trade deficits with over 90 - that’s right nine zero - countries. … Isn’t it the height of hypocrisy that America can articulate a particular position in its currency but the Chinese are not allowed to do that."
Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI), PowerShares DB US Dollar Index Bullish (Public, NYSE:UUP), PowerShares Gld Drg Haltr USX China(ETF) (Public, NYSE:PGJ)
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