Wednesday, November 11, 2009

Everyone is paying for US profligacy

We are all helping to pay the debt of US profligacy. See what the Thai FinMin said recently at the APEC meeting held in Singapore.

"We've bought about $15 billion to support the dollar," Korn told Dow Jones Newswires on the sidelines of the Asia Pacific Economic Cooperation Summit.

"We're building up effectively greater level of US dollar reserves. I'm convinced that in the long term the dollar is more likely than not to decline in value, so we're building up assets that are declining in value over time. That's not healthy," he said.

Korn said that while Asian countries have benefited from China's robust economy, the weak yuan that fuels China's growth also forces Asian central banks to curb their own currencies to maintain competitiveness.

"Quite clearly, all Asian central banks have found it necessary to intervene, and it's costing us," he said.

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