Intentional destruction of the dollar creates massive backlash among those not on board globalist bandwagon
A global backlash has emerged against the Federal Reserve’s blatant policy of devaluing the dollar by printing $600 billion out of thin air, a move that analysts, economists, foreign ministers and even the Fed’s own employees charge will only serve to stall economic recovery and initiate trade and currency wars.
On the eve of the G20 summit in Seol, finance ministers in China, Brazil, Russia and the euro zone have denounced the Fed’s quantitative easing, adding to an already deafening chorus of critics.
German Finance Minister Wolfgang Schäuble was one of the first to speak out against the Fed, describing its policy as “hopeless” and “clueless” and adding that:
“They have already pumped endless amounts of money into the economy with extremely high budget deficits… It doesn’t add up when the Americans accuse the Chinese of currency manipulation and then, with the help of their central bank’s printing presses, artificially lower the value of the dollar.”
China and Germany in particular are reliant on exports. Given that a cheaper dollar will make American exports cheaper, and theirs more expensive, it is hardly surprising that the two countries have been vocal in their opposition to Bernanke’s QE2.
China’s Vice Finance Minister Zhu Guangyao has charged that the Fed’s move doesn’t “take into account the effect of this excessive liquidity on emerging-market economies”.
A commentary piece in a leading State Run Chinese newspaper goes one step further, as professor Shi Jianxun notes that the Fed’s intentional manipulation of the dollar’s value could cause countries to put up trade barriers.
“In essence this is printing money in an unrestricted way, which equates to indirect exchange rate manipulation,” Jianxun writes.
“If a trade war is set off, the global economy will face not only a crisis, but very likely a collapse, because it will unavoidably trigger a wave of global trade protectionism and in the end everyone’s interests will be harmed.”
It highlights just how far into the twilight zone we have traveled when a Communist Chinese mouthpiece begins to sound reasonable.
China’s suggestion that the G20 should monitor and regulate the Fed’s decision making, however, represents a further step toward world governance of domestic economic policy. The option facing the American people would then be between a private banking cartel running the US, as it currently does, or an unelected world government.
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