Luo Ping, a director-general at the China Banking Regulatory Commission
“Except for US Treasuries, what can you hold?” he asked. “Gold? You don’t hold Japanese government bonds or UK bonds. US Treasuries are the safe haven. For everyone, including China, it is the only option.”
“We hate you guys. Once you start issuing $1 trillion-$2 trillion [$1,000bn-$2,000bn] … we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do.”
The US probably wants the dollar to depreciate, because then US exports will increase as other countries buy from us using cheap dollars.
Confusing, isn’t it?