UPDATE 1-UK’s Osborne says strong U.S. economy good for world

* Lends support to U.S. monetary easing policy

* Says strong U.S. economy in interests of Asia, Europe

* Urges all countries to resist protectionism

* Sees opportunities as China boosts yuan’s global role

By James Pomfret

HONG KONG, Nov 10 (BestGrowthStock) – A strong U.S. economy is in
both Asia’s and the world’s interest, British finance minister
George Osborne said on Wednesday in a speech in Hong Kong,
seemingly reaffirming the need for U.S. quantitative easing.

Britain’s Chancellor of the Exchequer declined to take a
clear position on the U.S.’s ultra-loose monetary policy, which
has drawn sniping from China, Brazil and other emerging economies
who say it will unleash speculative money that leads to inflated
asset bubbles and strengthened currencies.

But when asked how the U.K. saw U.S. quantitative easing —
just before a highly-anticipated G20 leaders summit in Seoul
aimed at easing global economic imbalances — George Osborne
stressed the need for a strong U.S. economy, echoing Washington’s
view that monetary easing is critical to kick-starting the
American economy.

“Lots of people have been quite ready to criticise the U.S.
on its monetary policy in the past few days. I would just make
this observation; it’s in everyone’s interests that the U.S.
economy gets motoring again … that is of enormous importance
for Asia, it’s of enormous importance to Europe as well,” he

“For all the problems in the U.S. … don’t underestimate one
of the most dynamic economies the world has ever seen, and I hope
like everyone else that the U.S. economy is going to be back
firing on all cylinders.”

Osborne, who met with Chinese officials in Beijing ahead of
the G20 summit in South Korea, called on countries to resist
protectionism in all its forms and to reduce trade barriers.

He has also said the G20 meetings need to bolster
multilateral cooperation to reduce economic imbalances.

Chinese officials have been increasingly blunt in their
criticism of the loose monetary policies of the United States,
warning that Washington could destabilise the global economy and
inflate asset bubbles.

When asked to what extent a strong Chinese currency had
contributed to global economic imbalances, Osborne sidestepped
the issue and said the underlying causes were more complex.

“The imbalance issue is a much broader issue and if you just
reduce it to the level of currencies, I think you are missing a
much broader economic argument here which is how do we get
surplus and deficit countries to work together to try and reduce
the imbalances.”

On the longer term trend of the internationalisation of
China’s currency, the yuan, Osborne said London was interested in
tapping new growth opportunities as Beijing leans increasingly on
the financial hub of Hong Kong as an offshore yuan settlement

“London has a great role as a partner of Hong Kong in
developing new Asian business, including the internationalisation
of the renminbi. I think there is a massive opportunity.”

“This is a potentially very, very substantial new market for
London and for Hong Kong as partners.”

(Editing by Chris Lewis and Ken Wills)

UPDATE 1-UK’s Osborne says strong U.S. economy good for world