Hu Talks Money.

We think Chinese President Hu Jintao has it about right on the dollar.

"The current international currency system is the product of the past," Hu told the WSJ ... noting the primacy of the U.S. dollar as a reserve currency and its use in international trade and investment. He went on to say that loose monetary policy from the US floods the world with liquidity and the liquidity of the US dollar should be kept at a reasonable and stable level. Mr. Hu is right here too.