Firstly, China did not appreciate their currency. US can print more money to buy their assets. And these assets will be come a discounts because it is bought by money being created out of nothing.
Secondly, QE3 is targeting more towards China based on the recent US trade claims against them. These claims, according to Kennedy, G (2012) states that "Chinese government has subsidized its automotive export industry in a way that is not allowed under World Trade Organization rules. As a result of the move, China filed a complaint with the WTO against a new U.S. law aimed at combating China's subsidies. The move is called "Countervailing duties" and includes tariffs on tires and steel."
My take on these were the claims may not be strong enough against China , and therefore decided that an alternative as to be in place. The Quantitative Easing 3, probably to flood China economy with cheap money.
My take on these were the claims may not be strong enough against China , and therefore decided that an alternative as to be in place. The Quantitative Easing 3, probably to flood China economy with cheap money.
Reference List
George Kennedy 2012, Obama calls for trade case against China, viewed 19 September 2012
< http://www.autoblog.com/2012/09/18/obama-calls-for-trade-case-against-china/>
George Kennedy 2012, Obama calls for trade case against China, viewed 19 September 2012
< http://www.autoblog.com/2012/09/18/obama-calls-for-trade-case-against-china/>
Anthony Shoemaker 2012, China is ‘unfairly keeping its currency low,’ U.S. Rep. Turner says, viewed 19 September 2012
<http://www.daytondailynews.com/blogs/content/sharedgen/blogs/dayton/ohiopolitics/entries/2012/01/12/china_is_unfairly_keeping_its.html/>
<http://www.daytondailynews.com/blogs/content/sharedgen/blogs/dayton/ohiopolitics/entries/2012/01/12/china_is_unfairly_keeping_its.html/>
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