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As countries refuse to use U.S. Dollar, Sarkozy sees "Economic War" |
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Thursday, 13 November 2008 |
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French President Nicolas
Sarkozy on Wednesday accused the United States of standing by
as the U.S. dollar falls, warning that risks of an "economic
war" in global trade were rising.
"Those who admire the nation that has built the world's
greatest economy and has never ceased trying to persuade the
world of the advantages of free trade expect her to be the
first to promote fair exchange rates," Sarkozy said in a speech
to a joint session of U.S. Congress.
"The (Chinese) yuan is already everyone's problem. The
dollar cannot remain solely the problem of others. If we're not
careful, monetary disarray could morph into economic war. We
would all be its victims," Sarkozy said.
His comments came as the U.S. dollar dropped to a record
low against the euro. European businesses and some
officials have complained that the euro's strength is
threatening to undermine growth in the euro zone.
The United States has repeatedly expressed its support for
a strong dollar, and has said currency values should be set in
open, competitive markets. However, some analysts believe
Washington has welcomed the dollar's decline, which is boosting
U.S. exports at a time when a housing slump is weighing on
economic growth. //11.13.08
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