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October 29, 2009 (LPAC) — China, Russia, India, and other export-reliant economies want a stable U.S. dollar, but the "problem is not whether the U.S. government is willing or not to keep the dollar stable, but whether it has the ability to do so," a very high-level Chinese financial official, Dai Xianglong, said at a forum Oct. 27 in Shanghai, China's financial capital city. This statement is useful; it keeps the issue on the agenda, Lyndon LaRouche said today. No one should jump to any conclusions about this statement, but it is important to keep this question on the agenda, he said.

Dai Xianglong, who was governor of the Peoples Bank of China in the late 1990s, and is now chairman of the National Social Security Fund (NSSF), has previously emphasized that China would continue to buy US Treasury debt — if the dollar is kept stable. On June 15 he had said at a public financial forum in Tianjin that "it is a necessary choice for China to buy US Treasury bonds, if you consider the pros and cons;" and he wrote in the official journal China Finance days later, that China retains the option of increasing its US Treasury debt holdings, given a stable dollar. China has not just "fallen into a 'dollar trap'," he wrote.

Yesterday he stated that, for China, the key is developing its huge economy. "We should shift our focus to the domestic market, and support economic and financial restructuring," he said in Shanghai.