Blame someone else
Arrgghhhh... Ben Bernanke is an idiot.
From the
Wall Street Journal:
Bernanke Takes Aim at China
Federal Reserve Chairman Ben Bernanke fired back amid criticism at home and abroad of the Fed's easy-money policies, arguing that China and others are causing global problems by preventing their currencies from strengthening as their economies boom.
By keeping their currencies artificially weak, Mr. Bernanke argued in Frankfurt Friday, China and other emerging markets are allowing their economies to overheat, preventing trade imbalances from adjusting and worsening what he called a "two-speed" global recovery.
Their "strategy of currency undervaluation" is preventing more "balanced and sustainable" global growth, he warns, echoing a view expressed by Obama Administration officials.
"
keeping their currencies artificially weak" -- gimme a break. What the hell is Quantitative Easing if not introducing a measured amount of inflation into the economy, thereby weakening the Dollar. This causes a short-term reduction in national debt and gets the interest rate up a little bit but it plays hell on international trade in both directions. The ultimate result is increased pain for the consumer...
OK for us to do but nobody else should try this.
Posted by DaveH at November 20, 2010 8:43 PM