China's Threat to Obama: Listen to that Idiot Krugman at Your Own Peril

The message from China's Foreign Exchange Bureau (SAFE) couldn't be any more clear if it was flashed in blinking red letters on the President's teleprompter. China wants him to return to free-market capitalism. To stop the deficit spending. To stop borrowing. Because Papa Mao ain't gonna foot the bills much longer.

[SAFE} acknowledged that financial markets were very concerned at one point that massive U.S. government borrowing would drive the U.S. currency lower...

But it said economic conditions elsewhere were also a factor in determining the dollar's trend. The euro zone, for instance, was struggling with high government debt levels.

"We must recognize that any depreciation of the dollar is relative to other countries, and other countries or regions also have this or that problem," SAFE said.

Translation: you ain't the only dog in the hunt.

One of the prime concerns of Chinese Internet commentators is that a long-term decline in the dollar or euro will erode the value of SAFE's portfolio.

To that end, SAFE called on the United States and other major countries to take "responsible measures" to maintain the value of their currencies...

This meant withdrawing monetary stimulus in a reasonable manner and relying less on deficit spending.

"Responsible measures" == "no more stimulus packages == "stop deficit spending" == "look elsewhere for loans" == "Got that, Mr. Paul 'Douche-Nozzle' Krugman?"

Conclusion: The People's Republic of China is now officially to the right of Barack Obama.


Hat tip: Zero Hedge.