- Joined
- Jan 3, 2009
- Messages
- 2,605
- Points
- 0
U.S. trying to inflate away debt
Nations holding large reserves in US dollars will lose heavily by
inflation or by value erosion.
PARIS, (Reuters) - The United States is pumping out liquidity to
try to inflate away its debt, leading to the depreciation of the
U.S. dollar, Henri Guaino, a top advisor to French President
Nicolas Sarkozy said on Tuesday.
He told reporters on the sidelines of a conference of Sarkozy's
ruling UMP party that the United States was 'flooding the world
with liquidity'.
Stiglitz: Fed Policy Is Causing Problems Worldwide
By editor|Oct 6, 2010, 1:11 PM
“The worry is that the flood of liquidity is going to cause what is sometimes
being referred to an emerging market bubble. Money is
going in. The worry is that it will cause a real estate bubble,
in one developing country or another.”
“The problem is very easy to understand. There’s a flood of money
into the financial sector. It’s asking, Where is the best place in the
world to go? In a world of globalization, the answer is not in the
United States. So U.S. Fed policy is causing an excess inflow into countries
all over the world.”
Countries all over the globe are finding huge amounts of hot money
pouring into their markets causing stock market and property bubbles
and rapidly appreciating their currency.
Most of them are struggling hard to stop this rapid appreciation
as their exports are hit hard. Countries like Thailand and Indonesia
are just two examples of hot money fueling bubbles within their
economies, causing serious concern.
Almost all the emerging economy nations worldwide are now
finding their currencies have appreciated highly against the
US dollar. And they can't do anything about it.
This could soon be the start of bubbles popping up all over
and busting one after another in a domino effect melt down.
Nations holding large reserves in US dollars will lose heavily by
inflation or by value erosion.
PARIS, (Reuters) - The United States is pumping out liquidity to
try to inflate away its debt, leading to the depreciation of the
U.S. dollar, Henri Guaino, a top advisor to French President
Nicolas Sarkozy said on Tuesday.
He told reporters on the sidelines of a conference of Sarkozy's
ruling UMP party that the United States was 'flooding the world
with liquidity'.
Stiglitz: Fed Policy Is Causing Problems Worldwide
By editor|Oct 6, 2010, 1:11 PM
“The worry is that the flood of liquidity is going to cause what is sometimes
being referred to an emerging market bubble. Money is
going in. The worry is that it will cause a real estate bubble,
in one developing country or another.”
“The problem is very easy to understand. There’s a flood of money
into the financial sector. It’s asking, Where is the best place in the
world to go? In a world of globalization, the answer is not in the
United States. So U.S. Fed policy is causing an excess inflow into countries
all over the world.”
Countries all over the globe are finding huge amounts of hot money
pouring into their markets causing stock market and property bubbles
and rapidly appreciating their currency.
Most of them are struggling hard to stop this rapid appreciation
as their exports are hit hard. Countries like Thailand and Indonesia
are just two examples of hot money fueling bubbles within their
economies, causing serious concern.
Almost all the emerging economy nations worldwide are now
finding their currencies have appreciated highly against the
US dollar. And they can't do anything about it.
This could soon be the start of bubbles popping up all over
and busting one after another in a domino effect melt down.
