And it's not even from anything "cool" like nuclear winter or some super-virus, but rather from...an money-bombing Fed? Financial Post explains:The spillover effect of all this on the rest of the world promises to be dramatically disruptive. The greatest global risk is in monetary and currency policy. Below is a chart that graphically demonstrates the sharp deviation in monetary policy from past norms. Under the chairmanship of Ben Bernanke, the Federal Reserve is in the midst of a giant economic experiment, flooding the world with U.S. dollars, hoping that flood will stimulate economic activity.Weak. "Helicopter" Ben Bernanke probably doesn't even know how to ride a horse.
The total monetary base, already at astronomical levels, is now expected to take another big hit with the new Fed policy of buying up U.S. longer-term treasury bills in a bid to drive down long-term interest rates.
-Famine
1 comment:
This nightmare is slowly unfolding. 9/11 looks more and more a catalyst for extremist victory through the destruction of The West's economies. The best weapon left to us is to save and not borrow our way out.
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