Bernanke Blames Congress for US Losing Marbles to China; Battle Over Symbolism

globaleconomicanalysis.blogspot.com / Mike “Mish” Shedlock / June 02, 2015

It’s very seldom that I agree with Bernanke on anything. He is wrong about the savings glut, about the cause of income inequality, about deflation, and countless other things.

Bernanke never admitted the Fed’s role in creating the housing bubble, and he does not see the new bubbles that have formed.

Yet today, Bernanke stated many things in a cohesive manner that I happen to agree with.

China Takes Marbles

Please consider US Congress Pushed China into Launching AIIB, says Bernanke.

Beijing was pushed into launching the Asian Infrastructure Investment Bank by US lawmakers’ refusal to give China greater clout in existing multilateral institutions, Ben Bernanke has said.

“The US Congress is largely at fault for all that’s happening,” the former chairman of the Federal Reserve said in Hong Kong on Tuesday.

America’s legislature blocked a 2010 International Monetary Fund agreement to shift 6 per cent of quota — and voting rights — to emerging economies, which Mr Bernanke believes would have “better reflected the increasing role of China” and other nations.