{"id":20133,"date":"2023-04-23T05:21:35","date_gmt":"2023-04-23T05:21:35","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/china-warns-of-global-financial-instability-from-us-economic-policies-economics-bitcoin-news\/"},"modified":"2023-04-23T05:21:35","modified_gmt":"2023-04-23T05:21:35","slug":"china-warns-of-global-financial-instability-from-us-economic-policies-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/china-warns-of-global-financial-instability-from-us-economic-policies-economics-bitcoin-news\/","title":{"rendered":"China Warns of Global Financial Instability From US Economic Policies \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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China has urged the U.S. and other developed nations to assess the spillover effects of their economic and financial policies. \u201cThe economic and financial policies of the U.S. pose the biggest challenge to global financial stability,\u201d according to the Chinese Ministry of Foreign Affairs.<\/strong><\/p>\n

China Cautions About U.S. Economic and Financial Policies<\/h2>\n

Wang Wenbin, a spokesperson for China\u2019s Ministry of Foreign Affairs, expressed concerns over the state of the global economy at a press conference Thursday.<\/p>\n

Commenting on the recent International Monetary Fund (IMF) Global Financial Stability report pointing out that the turmoil in the U.S. banking sector has increased the risk of global financial stability, the Chinese official said: \u201cGlobal financial stability bears on the recovery and development of the world economy and the common interests of all countries, and requires the world\u2019s common efforts.\u201d<\/p>\n

Emphasizing that \u201cThe notable global financial risks have much to do with the aggressive adjustments of the monetary policies in the U.S. and other developed countries,\u201d Wenbin stressed:<\/p>\n

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Many in the international community shared the view that the economic and financial policies of the U.S. pose the biggest challenge to global financial stability. The massive interest rate hikes by the U.S. Federal Reserve since last year have significantly increased global financing costs and exacerbated disorderly international capital flows.<\/p>\n<\/blockquote>\n

\u201cThis has not only led to the bankruptcy or takeover of some banks in the U.S. and Europe, but also made things more difficult for emerging markets and developing countries, which is not conducive to the stability and recovery of the world economy and common development of the world,\u201d the Ministry of Foreign Affairs spokesperson added.<\/p>\n

\u201cResearch shows that commercial creditors from developed countries hold almost half of the debt of debt-ridden countries in the world. Since last year, the higher interest rates of developed countries including the U.S. have increased the debt burden of the countries concerned, plunging them into a vicious cycle of debt repayment and exposing them to debt default,\u201d the Chinese official continued, emphasizing:<\/p>\n

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We urge the U.S. and other developed countries to prudently assess the spillover effects of their economic and financial policies, stabilize market expectations in a timely manner, and avoid creating adverse shocks to global financial stability.<\/p>\n<\/blockquote>\n

\u201cAt the same time, we call on developed countries to listen to the developing countries about what they actually think and urgently need, provide tangible help to countries in difficulty, stop paying lip service and shifting blame, and step up to their responsibility for maintaining global financial stability and promoting global economic recovery,\u201d he concluded.<\/p>\n

Do you think that U.S. economic and financial policies will lead to global financial instability? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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