Tags: Soros US | China Both Have Valid Points in QE2 Debate

Soros: US, China Both Have Valid Points in QE2 Debate

Tuesday, 16 Nov 2010 09:32 AM

The United States and China both have valid points in their discussions over the U.S. Federal Reserve's latest bout of quantitative easing, billionaire George Soros was quoted as saying by a Norwegian newspaper on Tuesday.

"Both sides are right in this case," Soros was quoted as saying by Dagens Naeringsliv. The daily talked with Soros after he met Norway's trade minister in New York on November 12.

"The Chinese are trying to maintain their undervalued currency while the United States in reality is flooding the world with dollars, which leads to pressure in other countries and leads to great tension in forex markets," said Soros.

China and some emerging economies have fumed at the Fed's easy-money policy, which they fear will lead to capital inflows and unneeded appreciation of their currencies.

Asked if the Fed had any other choice but to continue to print money to stimulate a weak U.S. economy, Soros said fiscal measures would have been better.

"Fiscal stimulus would have been preferred because it would not have had damaging side effects that quantitative easing had," Soros was quoted as saying.

"But that is impossible to carry out... because of the success (at this month's mid-term elections) of the Republican Party which is opposed to such measures," he said.

© 2017 Thomson/Reuters. All rights reserved.

   
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The United States and China both have valid points in their discussions over the U.S. Federal Reserve's latest bout of quantitative easing, billionaire George Soros was quoted as saying by a Norwegian newspaper on Tuesday. Both sides are right in this case, Soros was...
Soros US,China Both Have Valid Points in QE2 Debate
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2010-32-16
Tuesday, 16 Nov 2010 09:32 AM
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