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| Economy |
| QE2 risks currency wars and the end of dollar hegemony |
| 2010-11-02 |
| As the US Federal Reserve meets today to decide whether its next blast of quantitative easing should be $1 trillion or a more cautious $500bn, it does so knowing that China and the emerging world view the policy as an attempt to drive down the dollar. |
| Posted by:tipper |
| #13 Look America's a BIG country. Exports and Imports are tiny compared to internal trade. CUT taxes on trade and have a strong currency. |
| Posted by: Bright Pebbles 2010-11-02 19:50 |
| #12 ..and watch 'trade barriers' of various forms and definitions arise against those American exports. See where all that concern in the Beltway for everyone but America's economy gets you now that you've started to play the game they've played for so long. |
| Posted by: Procopius2k 2010-11-02 17:18 |
| #11 It is actually good for the US to drive its dollar down to improve markets for its exports and to eat away its international debt Except that manufacturing in the U.S. has declined over the years and we have fewer and fewer goods to export. |
| Posted by: JohnQC 2010-11-02 17:09 |
| #10 Falling House prices = More affordable housing = Less debt = Lower cost of living. It's the market recovering, not a bad thing. |
| Posted by: Bright Pebbles 2010-11-02 14:57 |
| #9 Fuel and energy prices have been increasing, as have food prices. House prices have fallen again, though, so that's ok. /sarcasm |
| Posted by: trailing wife 2010-11-02 13:47 |
| #8 Zimbabwe economics. |
| Posted by: Ebbang Uluque6305 2010-11-02 12:07 |
| #7 Inflation is NOT the answer. "Quantitative Easing" just another doublespeak term for a tax-hike without voting for a tax-hike. Manufactured inflation will really hurt the poor and move some "Middle-Class" into the poor house. Fuel and energy price jump, sustenance price jump, and more slowing of the economy. |
| Posted by: newc 2010-11-02 10:49 |
| #6 Yet again anon1 you manage to advocate doing EXACTLY the wrong thing economically. When the currency falls you are giving workers an effective pay cut. |
| Posted by: Bright Pebbles 2010-11-02 10:40 |
| #5 QE2 has been laid up in Dubai ever since her retirement from the seas in 2008. Don't you love namespace pollution? |
| Posted by: gromky 2010-11-02 10:10 |
| #4 The negative is that Congress, the courts, and the media have obstructed 'drill, baby, drill' and 'build, baby, build [nukes]' since the 70s. Had we shifted a far greater part of our energy requirements to domestic sources, the overall impact upon the country would have made this a viable act. In absence of that preparation, it's going to compound with the taxes and government regulation to strangle the economy further. How does a businessman plan ahead when the rate of inflation is increasing and indeterminable in its end. Throw in the 'automatic' cost of living increases for social security et al and there is no budget, just printing more and more money. |
| Posted by: Procopius2k 2010-11-02 09:52 |
| #3 my guess is they will surprise to the lowball estimate the dollar will then rise in the short term and stocks will go down. look out below ... the Dow will fall It is actually good for the US to drive its dollar down to improve markets for its exports and to eat away its international debt china can go whistle in the wind, they've been stealing jobs through the pegging of the yuan, it's high time they unpegged |
| Posted by: anon1 2010-11-02 09:27 |
| #2 It's a feature, not a bug. |
| Posted by: Nimble Spemble 2010-11-02 09:25 |
| #1 Immediate devaluing of the dollar means an immediate jump in the cost of imported energy resources with ramifications throughout the economy. Welcome to the double digit inflation 70s kiddies. The 'best and brightest' aren't. |
| Posted by: Procopius2k 2010-11-02 09:09 |