Bernanke tries calling China out; China could care less and imposes more capital controls

Speaking of China's decision to keep the Yuan, "artificially low" Bernanke said, via Bloomberg:
“Globally, both growth and trade are unbalanced,” Bernanke said, with economies growing at different rates. “Because a strong expansion in the emerging-market economies will ultimately depend on a recovery in the more advanced economies, this pattern of two-speed growth might very well be resolved in favor of slow growth for everyone if the recovery in the advanced economies falls short.”

Bernanke said that different economies “call for different policy settings.” In the U.S., inflation has slowed since the most recent recession began in December 2007, and “further disinflation could hinder the recovery,” he said.


“Insufficiently supportive policies in the advanced economies could undermine the recovery not only in those economies, but for the world as a whole,” he said.

America’s unemployment rate at 9.6 percent last month is currently “high and, given the slow pace of economic growth, likely to remain so for some time,” Bernanke said. He said that “we cannot rule out the possibility that unemployment might rise further in the near term, creating added risks for the recovery.”
Even though he didn't mention China by name, it was clear about whom he was speaking.  China could care less and during the speech itself, they imposed additional capital controls in response.
As Bernanke spoke, the Chinese central bank said it will raise the reserve ratio requirement for the nation’s banks by 50 basis points from Nov. 29. The dollar fell to $1.3721 per euro at 11:50 a.m. in Frankfurt from $1.3634 yesterday.

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