Posts Tagged ‘Xie’

Andy Xie mistakes cause and effect

November 8, 2010 Comments off

Xie gets cause and effect wrong. China locked their currency to the U.S. dollar, not the other way around. Blaming the U.S. for wanting to feel the effect of QE is projection – a basic psychological error.

QE I (thats right – the first round, much less QE II) would not be viewed as necessary without the Chinese Currency lock. If china had let their currency float 3 years ago, the Yuan would have been at least 10% stronger now. The first round of QE would have caused 2.5 to 3% inflation in the U.S. and other countries. Chinese inflation would be much less as well.

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