China Says U.S. Economy Is Fake, Nothing Backs The Dollar And Has No Manufacturing To Support Its Ec

[Paul Rigby]

China stood up to Washington at the G20 meeting in Geneva and said the US economy is fake, the dollar is backed by nothing and the US has no manufacturing to support its economy:

Starts about 11:15 into the programme:

http://www.youtube.com/watch?v=VGDkFOyao...re&index=1

China, US argue economic reform at G20 meeting:

http://english.peopledaily.com.cn/98649/8546831.html

At the meeting of G20 Finance Ministers and Central Bank Governors which concluded on February 23, China and the US engaged in a vigorous debate on China's economic reforms. Before the meeting, American Treasury Secretary Jacob Lew had criticized China for its failure to show any signs of accelerating economic reform in line with U.S. expectations, and called for China to speed up reforms though facing the risk of social and political turmoil. Chinese Finance Minister Lou Jiwei responded in kind by pointing out that the US had not engaged in any structural reform either, but had revitalized its economy by printing money.

[David Guyatt]

Can't argue with China about that.

Money isn't backed by anything other than "public confidence" which assumes it has value. If and when public confidence collapses, the currency will collapse with it.

And the US - like the UK - has no real manufacturing base these days as they've transferred it to cheap labour countries.

[Magda Hassan]

Yes, China holds all the cards in this one. They make the goodies the west craves. They got most of the money and gold too. Some of it invested in US treasury bonds, just enough to get some leverage, but not all their eggs in one basket. They've tied up a lot of the rare mineral deposits around the world. And they have a few nukes of their own as well. There will a revolution in the US if the people can't get their cheap goodies.