Who created the "deficit empire"?

The problem is not renminbi, the dollar problem. Further, this also is not only dollar question, is the world currency reserve system problems."

Quantitative easing policy of the new round of U.S. shows in the second quarter of 2011 to buy 600 billion U.S. dollars to further the longer-term bonds, the first round of quantitative easing would be twice the size. This sounded a global "currency war" in the new strong voice in the pressure of hot money in emerging countries coded the same time, will deepen the developed and emerging markets in the exchange rate differences.

In the global response to financial crisis environment, how to reduce differences between developed and emerging countries, is related to the effectiveness of response to the crisis. Over the years, some developed countries frequently accuse the RMB exchange rate issue, the United States is the RMB exchange rate has been repeatedly linked to the U.S. trade deficit. Particularly since the financial crisis, the sound of further amplification. However, available data show that as early as 1981, the U.S. trade deficit had continued. Over the years, the U.S. maintained a trade surplus of the country changing, the only constant is the reality of the U.S. trade deficit. That time, China's surplus with the U.S. not yet been achieved.

To further clarify the RMB exchange rate and the relationship between the U.S. trade deficit, and the source of the U.S. trade deficit, G20 summit on the eve of Seoul, "Outlook," Newsweek reporters Du Jia and Zhuan Fang specifically to deal with the United Nations Economic and Social Affairs, Assistant Secretary-General Qiao Mosang Drum (JomoK.S.). Jomo since 2005 as the post of United Nations Assistant Secretary-General, and is also the G24 on International Monetary Affairs and Development of the Intergovernmental Group (Hons) Research Coordinator, United Nations Monetary System Reform Commission and other staff, the figure often appears in international monetary affairs Among important meeting.

In Jomo view, the "currency war" is the current world is facing a dangerous phenomenon. At first, some developed countries accused of manipulating the currency, mainly focusing on China; present, accused the subject has been expanded to other countries. In his view, money is clearly not conducive to international cooperation in the war, should learn the lessons of history, to avoid taking the old Japan. September 1985, the Japanese government was forced to sign the Plaza Accord, "the correction of overvalued U.S. dollar," the situation. Next, Japan experienced a "lost decade."

Jomo hope, G20 summit in Seoul, after the countries reached a new consensus as soon as possible to prevent the world economy has entered a new recession, create conditions for economic recovery.