“Exchange rate war” is still the focus of the question, but the object has moved.

November 11, the Group of Twenty (G20) summit held in Seoul, South Korea, the United States had hoped to use of this platform to put pressure on the renminbi, but did not think it makes the dollar as the national monetary policy, the focus of complaints.

Fed launched the second round of quantitative easing (QE2) monetary policy in the next 8 months purchase worth 600 billion U.S. dollars U.S. Treasury bonds, which makes the already weak dollar fall further against major currencies worldwide.

The United States since become the target, Germany, Brazil, Russia, China and other countries on the QE2 made a scathing criticism. Germany played a leading role against the QE2, China and other emerging markets is very pleased to support, because the QE2 weighed on the dollar, resulting in massive hot money flows to emerging economies could lead to economic instability.

For a long time, the U.S. Treasury dollar policy in talking about, often only one standard answer: “We support a strong dollar policy”, in addition to the basic will not do further elaboration.

But Greenspan’s remarks, had to let Geithner also uncharacteristically, he underwent emergent CNBC interview that day, the dollar’s recent weakness to explain the reasons.

Geithner said the dollar’s recent decline is due to seek “safe haven” of capital caused by reflux. He said investors no longer seek the recent U.S. dollar assets as shelter, although the U.S. still faces challenges, but this is “a sign of confidence, but also that we face a global risk control.” This shift was, “We see a dominant trend.”

Geithner said, “I respect Alan Greenspan, was honored to work with him was long, but he said, the Fed’s policy or whether it is our policy, are not accurate.”

Global crusade against the Federal Reserve

Since the Fed started QE2 on Friday, the international community’s condemnation of the policy of a sound wave after wave. People worried that the Fed funds to the financial markets will not enter into the real economy, but the formation of asset bubbles into overseas markets.

German Chancellor Angela Merkel said in an interview, QE2 “by the artificially low exchange rate to stimulate exports,” the policy “short-sighted and will ultimately harm the interests of all.”

German Finance Minister Sch