US Federal Reserve chairman Ben Bernanke, and by extension the US government, must think we are all stupid. He is now blaming the global financial crisis on the Chinese. Anything that deflects attention from the Fed fuelling the bubble by keeping interest rates low and the dodgy securities sold by American investment banks.
The Financial Times reports that Bernanke says the world's troubles started with those pesky Chinese saving too much, flooding the US market with money.
"The preference by so many investors for perceived safety created strong incentives for US financial engineers to develop investment products that 'transformed' risky loans into highly rated securities," said Mr Bernanke.
So it's not the Fed's fault at all, says Bernanke ducking responsibility. He is also whitewashing the American banks. Until the cause of the problem is acknowledged, there can be no solution.
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