Oct. 10 (Bloomberg) -- U.S. monetary stimulus and not the accumulation of reserves by emerging nations is creating the biggest imbalance in world economies, Brazilâs Central Bank President Henrique Meirelles said. Developing countries that are building up foreign reserves âwonât assume the responsibilityâ for an imbalance of exchange rates, Meirelles told reporters today in Washington during the International Monetary Fundâs annual meeting. âThe reserve accumulation policy of emerging markets wonât take that responsibility,â Meirelles said. âThe most important imbalance today is the American monetary expansion, which is being used to fight lower growth and unemployment still high in the U.S. -- this is the biggest injection of liquidity in the international economy.â http://noir.bloomberg.com/apps/news?pid=20601087&sid=abBjcQ88PUoM&pos=5
Take a chart of US money base growth and a chart of emerging economies foreign reserve growth... Now put them together. Tadaaa.
There is only one question to answer : when will the world stop buying Apple IPads, Ipods and IPhones "made in China" ?
One way or another it *will* happen. Whether through higher taxes/tariffs, dollar depreciation, 20% us unemployment, trade war, etc. US population is shooting themselves in the foot evey time they set foot in a WalMart.