Ripping Off the Band-aid
Mr Obama gave warning to Asian exporters that they must stand on their own feet in the future rather than feeding off US markets. "We cannot follow the same policies that led to such imbalanced growth. If we do, we will continue to drift from crisis to crisis, a failed path that has already had devastating consequences," he said.
The forum skirted the delicate issue of China's currency peg, which has allowed China to gain an edge by riding on the coat-tails of a weaker dollar. This caused tensions within Asia, where Chinese goods are undercutting products from Japan, Thailand, India, and other countries.
Beijing has intervened on a massive scale to hold the yuan at 6.83 to the dollar, pushing China's foreign reserves to $2.3 trillion. This has started to become a headache for China as well since the liquidity "blow-back" is fuelling an asset bubble.
You hang up.
No you hang up.
No you first.