TV News LIES

Monday, Jan 23rd

Last update05:20:13 AM 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...


Oxfam: Eight men are as rich as half the world

Oxfam : 8 men richer than half the worldThe gap between the super-rich and the poorest half of the world's population is starker than...

Jobless claims fall to near 43-year low

Jobless claims at 43 year lowThe number of Americans filing for unemployment benefits fell to near a 43 year-low last week,...

Amazon says it will create 100,000 full-time jobs in U.S. by 2018

AmazonAmazon will create 100,000 full-time jobs in the United States with full benefits over the next...

Macy's cutting 6,200 jobs, closing 68 stores

Macy's cutting 6,200 jobsAfter seeing sales drop during the holidays, Macy's said Wednesday it has either closed or will...
 
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!