China alarmed by US money printing

I don't know who is Cheng Siwei, but what he said corresponds to my speculation theme:

• Cheng Siwei, former vice-chairman of the Standing Committee and now head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing".
• "If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.
• "Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets," he added.
• "Credit in China is too loose. We have a bubble in the housing market and in stocks so we have to be very careful, because this could fall down."

I like this quote: "He who goes borrowing, goes sorrowing"

Original source from The Telegraph