China: "Current International Currency System Is The Product Of The Past"

01-16-2011 • BusinessInsider.com/

Chinese President Hu Jintao has targeted the dollar's reserve currency status ahead of his big meeting with President Obama saying, "the current international currency system is the product of the past." In an e-mail interview with the Wall Street Journal, President Hu also attacked the Federal Reserve's use of dollar liquidity as a stimulant. Particularly interesting were his comments on inflation. President Hu seemed to downplay the problem. From The Wall Street Journal: Further, Mr. Hu suggested that inflation was not a big worry, saying prices were "on the whole moderate and controllable." He added: "We have the confidence, conditions and ability to stabilize the overall price level." He also suggested that the inflation situation would not drive China to revalue the yuan.