Backlash against Fed’s $600bn easing

The US Federal Reserve’s decision to pump an extra $600bn into the economy has galvanized emerging market central banks into preparing defensive measures and sparked criticism from leading global economies.

The Fed’s initiative, in response to rising concern about the weakness of the US economy, has fuelled fears of a sharp drop in the dollar and a fresh flood of capital inflows into emerging markets.

China, Brazil and Germany on Thursday criticised the Fed’s action a day earlier, and a string of east Asian central banks said they were preparing measures to defend their economies against large capital inflows.

Guido Mantega, the Brazilian finance minister who was the first to warn of a “currency war”, said: “Everybody wants the US economy to recover, but it does no good at all to just throw dollars from a helicopter.”

Mr Mantega added: “You have to combine that with fiscal policy. You have to stimulate consumption.” Germany also expressed concern.

An adviser to the Chinese central bank called unbridled printing of dollars the biggest risk to the global economy and said China should use currency policy and capital controls to cushion itself from external shocks.

http://www.ft.com/cms/s/0/981ca8f4-e83e-11df-8995-00144feab49a.html

Congratulations FED. You have the most powerful economies brought up against you. Welcome capital controls.

 

It's not unusual for children to cry when they are first weaned from the mother's breast.

 

Seriously... exporters who peg their currency at artificially weak levels to the dollar are now complaining about this?

 

Was looking for the line where Scotty said to Geordi: "so you sour the mother's milk", but this summary is just as good:
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Lol... there must be some kind of a ward they should give you for this.

 

they preidct hang seng to go to 2900! aus, hong kong , china......hot money

 

Fed options are,

1. Hyperinflation
2. Higher taxes
3. Sell state owned assets
4. Default
5. Lies & damned lies.

Democracy and Capitalism within the context of Global Economy is not suitable and scalable. Hope somebody finds a comprehensive solution.

 

Here is my modest proposal. I have long agreed with Ron Paul that we should end the military empire and stop wasting our money on all those overseas military bases. But I hadn't taken the concept far enough. We should auction off those bases to any country that wants to be the next global hegemon -- China, Russia, whoever. First we make a profit from the sale of the miitary bases. Then we can sit back and watch the new global cop go bankrupt.

 

Be careful what you wish for lest you find yourself speaking German someday.

 

there are too many billionaires.

way too many