ADN

China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed's direct purchase of US Treasury bonds.

Richard Fisher, president of the Dallas Federal Reserve Bank, said: "Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."

"I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States," he told the Wall Street Journal.

His recent trip to the Far East appears to have been a stark reminder that Asia's "Confucian" culture of right action does not look kindly on the insouciant policy of printing money by Anglo-Saxons.

Mr Fisher, the Fed's leading hawk, was a fierce opponent of the original decision to buy Treasury debt, fearing that it would lead to a blurring of the line between fiscal and monetary policy – and could all too easily degenerate into Argentine-style financing of uncontrolled spending.

However, he agreed that the Fed was forced to take emergency action after the financial system "literally fell apart".

Nor, he added was there much risk of inflation taking off yet. The Dallas Fed uses a "trim mean" method based on 180 prices that excludes extreme moves and is widely admired for accuracy.

More/Source: http://snipurl.com/ixhp6

I often wonder if people like Peter Schiff, Marc Faber, and Jim Rogers are right in their dire prediction that the U.S. dollar is on the verge of collapse, will the ensuing pain be the wake up call the American people need to throw off the shackles of the Democan/Republicrat "two party" tyranny and the criminal cabal behind Corporate America and the Federal Reserve, and open the door to a return to the Constitution and an end to the insanity of the American Imperial Roman Empire? Or are the people so throughly brianwashed by corporate media that a collapse will only give rise to an even greater tyranny?