China Financial Daily

Make RMB (CNY) become the anchor of Financial Crisis
As the largest developing country, China will substantially increase the position in world economy depending on the financial crisis. This is obviously possible to make RMB become the anchor of financial crisis to stabilize the Europe and the United States, help the world pull through the crisis. China will probably play a crucial role in this financial crisis.

Renminbi Recently has become one of the strongest Currencies
Recently, the Renminbi has become one of the strongest currencies, whether it has excessive appreciation or depreciation, it will cause the damage on financial markets and the entity economy. The stability of the Chinese economy not only could provide the world needs over a period of time, but also can more easily carry out the strategic to use huge foreign exchange reserves, so it can be said that as long as China can stabilize, the RMB is likely to become the anchor of financial crisis.

RMB appreciation has probably reached the peak point
October 14, data issued by the People’s Bank of China showed that until the end of September, 2008, Chinese foreign exchange reserves stood at 1905.6 billion USD, which increased 32.92%. From January to September, national foreign exchange reserves increased 377.3 billion USD, while the foreign exchange reserves in September increased 21.4 billion USD, which decreased 3.6 billion USD compared with the last month. This means the foreign exchange capital inflow has reduced their speed.

A Plan for China to Bail Out the US
This proposal by Arvind Subramanian in the Financial Times makes quite a lot of sense, but given the collective denial in the US about how bad things are (despite the cratering of the markets, neither Presidential candidate was willing to say the economy would get worse, when that is a given) and our dependence on China. And by the time we might be ready to ask for help, it will probably be too late. Americans are too wedded to the idea of our superiority, wrapped in the only slightly less offensive packaging of “exceptionalism” to realize that our economic crisis will lead to a permanently diminished standing.