Brazil´s Central Bank President Meirelles Says U.S. Stimulus Is ’Biggest Imbalance’

Discussion in 'Wall St. News' started by ASusilovic, Oct 10, 2010.

  1. Oct. 10 (Bloomberg) -- U.S. monetary stimulus and not the accumulation of reserves by emerging nations is creating the biggest imbalance in world economies, Brazil’s Central Bank President Henrique Meirelles said.

    Developing countries that are building up foreign reserves “won’t assume the responsibility” for an imbalance of exchange rates, Meirelles told reporters today in Washington during the International Monetary Fund’s annual meeting.

    “The reserve accumulation policy of emerging markets won’t take that responsibility,” Meirelles said. “The 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.”
  2. Take a chart of US money base growth and a chart of emerging economies foreign reserve growth...

    Now put them together.

    Tadaaa. :)
  3. There is only one question to answer : when will the world stop buying Apple IPads, Ipods and IPhones "made in China" ?
  4. 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.
  5. I guessed this was a post by southamerica.
    Who cares about brazil?