TV News LIES

Friday, Nov 21st

Last update09:56:11 PM GMT

You are here News Economy Unbridled printing of dollars called "the biggest risk" to the global economy.

Unbridled printing of dollars called "the biggest risk" to the global economy.

E-mail Print PDF

Fed printing of dollars called greatest risk to global economyLast Wednesday was a hinge point in history. The United States decided to drop all pretence of being interested in leading – or even being part of – a coordinated global policy response to the most serious economic crisis in more than 70 years.

Up until now, the rest of the world has been willing to tolerate unprecedented money-printing by the US – and the UK for that matter. QE has been used to help various financial institutions avoid facing up to their losses, while covertly recapitalising Western banks that are, to all intents and purposes, insolvent. Money-printing has also pumped up equity prices. After the latest Fed-induced "sugar rush", the FTSE global all-share index hit a two-year high.

With QE money having been used to purchase Treasury bills and gilts, as well as dodgy mortgage-backed securities, it has also allowed certain governments to keep spending.

Who cares if yields on sovereign IOUs have been artificially depressed (for now) by the weight of freshly-created money. Implementing spending cuts is a far, far harder proposition than announcing yet another "Keynesian" fiscal boost.

So, in other words, QE has benefited some pretty formidable interest groups – insolvent banks, public sector unions and cowardly politicians. No wonder us long-standing critics of the policy have been dismissed as "inflation nutters" and "cranks".

But, in recent weeks, something has changed. Big players such as China, Brazil – and Germany too – think the US has gone far too far and are now saying so.

More...


Most Recent Related Stories...


How Executive Ended Up With $196 Million in an IRA

IRA investmentCorporate and private-equity executives can accumulate millions of dollars in tax-favored retirement accounts, taking advantage of...

JPMorgan Settles Claims It Cheated Shale-Rights Owners

JP MOrgan ChaseJPMorgan Chase & Co. (JPM) settled a lawsuit by mineral-rights owners who accused the bank of...

Seven big US corps pay CEOs more than they hand Uncle Sam in taxes

CiticorpSeven of the 30 largest American corporations paid more money to their chief executive officers last...

Regulators fine global banks in currency probe

Global banks finedU.S., British and Swiss regulators fined five global banks more than $3 billion for attempting to...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!