Every major and mid sized economy around the world is angry at the Fed, but these 3 are the biggest. Brasil has tremendous natural resources and are friendly to other resource rich south american countries like Venezuela. Germany has the technological know-how and monetary hegemony over Europe. China has the critical mass, infrastructure and vast manufacturing capability. Can this tripartite alliance end US hegemony and usher in a multi-polar world? I think we live in a very interesting era....
At first I was quite disturbed by the QE but as I see China and Germany start to yelp I've decided to reserve judgement for awhile. I mean, if it pisses off china it must be good, right? Let them huff and puff and dump their treasuries. No problem. Yields are going to crash one way or another. China isn't going to be able to comfortably park vast sums in a non-reserve currency now are they? Germany is just angry because they are going to export less vehicles to North America. Plain and simple. I don't much like seeing my cash devalued but maybe there is more thought behind this than appears. Brazil? Brazil is not a factor in anything.
That is only the initial response, the media has not yet really begun to discuss the domestic effects.
Germany tried that with Italy and Japan and it took 50 years to get united. Maybe the Germans would like to try again with new partners? This time around the US will not want to get involved after the dust settles and will leave the whole of Germany in Russian hands. That would be a lot of fun I tell you. The US will deal with Brazil only. I do not think the Chinese are that stupid to follow Germans to their last and final demise.
The QE is for U.S. self salvation at the expense of the rest. It does not indicate U.S. hegemony, but does indicate U.S. dollar enjoyed privileged position, which is under attack. Given the experience of Iraq war, and Afghan war, It is hard to see that U.S. hegemony is still there.
the most ond only effective way would be to establish oil trading in other currencies if Brazil starts to sell oil only in its own currency, the same for Russia if Europe stops using dollars for commodities it will be huge - QE 2 would be instantly cancelled QE 1 would be reversed USA would stop wars all together
outstanding question and thesis.... ok, who purchases all their exports?, since they are export based economies? who is the global consumer amongst these three nations, sufficient that they could even come close to replacing the role that the Americans play? beyond buying natural resources for product development and sale, where and to whom do they market their wares?, other developing nations? presumably these other developing and established nations already have sufficiency in imports and consumer goods... the world is finding out that perhaps every nation benefits when America resumes its lead even in consumption....
the world will benefit if it gets rid from the dollar as a reserve currency Every nation will benefit if they stop giving away their labour for free to satisfy so called US consumer honestly, US consumer is irrelevant now. With the world population 7 billion and US just 300 million major economies can't rely or expect US consumer will fuel world growth what is just needed is to get rid of the dollar and put USA into its own misery