QE2 risks currency wars and the end of dollar hegemony

By Ambrose Evans-Pritchard,

From telegraph.co.uk

January 1st, 2011

telegraph.co.uk — As the US Federal Reserve meets today to decide whether its next blast of quantitative easing should be $1 trillion or a more cautious $500bn, it does so knowing that China and the emerging world view the policy as an attempt to drive down the dollar.