Posted on 11/05/2010 12:45:48 PM PDT by NormsRevenge
Germany, China, Brazil and South Africa have criticised US plans to pump $600bn (£373bn) into the US economy.
German Finance Minister Wolfgang Schaeuble said the US policy was "clueless" and would create "extra problems for the world".
The US Federal Reserve could weaken the US dollar and hurt exports to America.
China's Central Bank head Zhou Xiaochuan urged global currency reforms, while South Africa said developing countries would suffer most.
He did not elaborate how the system should be changed. 'Undermining the G20'
South Africa's finance minister Pravin Gordhan warned that "developing countries, including South Africa, would bear the brunt of the US decision to open its flood gates without due consideration of the consequences for other nations."
The US policy "undermines the spirit of multilateral co-operation that G20 leaders have fought so hard to maintain during the current crisis," he said.
The heads of state and government of the G20 group of the world's leading nations is due to meet in a week in South Korea, with currencies and trade imbalances high on the agenda.
(Excerpt) Read more at bbc.co.uk ...
China will be badly burned by this crap but they don’t have a private central bank.
.. not to diminish the contributions of the Fed in this whole mess.
Folks, this “bernake is clueless” stuff is ggetting real old. These people are quite sharp and do what benefits them. If you want to survive figure, figure out what the end game is. Forget everything that you think is true and just LOOK with fresh eyes. This has happened before.
If it hurts exports from less develped countries, will that mean that we’ll finally be able produce something in the USA that will be competitive with the imports that are flooding our stores?
If we can’t get a return of manufacturing to the USA, we will go down the drain to has-been status.
But...but...but...when he was ‘campaigning’ for the US Presidency in Europe... they LOVED him...!!!!!!!!!!!!
” will that mean that we’ll finally be able produce something in the USA that will be competitive with the imports that are flooding our stores? “
You are aware, aren’t you, that the EPA, OSHA, EEOC, ADA, IRS, SS/FICA, UAW, AFL-CIO, and the rest of the alphabet haven’t magically disappeared, just because the dollar is being catastrophically devalued??
If they aren’t “clueless” then they are deliberately sabotaging the US economy.
They might be able to pull the wool over the eyes of the fawning media like Matthews and Olberman, but when it comes to other countries and their leaders and their press, they have no fans. The eminent collapse of the US economy will cause irreparable harm all across the world and when it does, we will have no more allies, only enemies............
Unfortunately, yes I am aware that all that crap still exists, but I am hoping that reversals in those areas will begin no later that 2012, but hopefully even before then.
we will have no more allies, only enemies............
Who are “we”? You think these bankers are acting in the nations best interest?
Historically the “we” are the ones left with the bag of shit while the banksters move somewhere else.
Actually what their concerned about here is the policy of the Federal Reserve being inflationary.
To an extent this is beneficial to the U.S. as it gets us into the game of dealing with the way foreigners have been abusing us using currency manipulation(specifically currency devaluation) for the last 50 years to give themselves a decisive import/export advantage in global trade.
The same currency gaming is one of the main reasons we have lost soo much of our indistry over the same peroid.
Of course playing their game has major costs, namely the destruction of our stored assets precisely when we will need them most. We have a very old population the boomer were not productive in terms of having children that left us(the boomer specifically) in the untenable situation of not only needing a lot of stored resources to care for them in their non-productive years, but but a significant producer population to take them resources in trade to provide them with their necessary services.
Right now the younger population in the united States is unusaly few in number and as a direct result the cost of our labor will be much higher and they will need much more to provide for the same. The caveat being if our dollar remained strong we would have been able to exploit forcing labor supply’s for the same thing.
With the inflation that will no longer be as viable an option, which isn’t as bad as it sound as you all know its already an increasingly inviable option simply due to the nature of our preexisting trade dept and the fact that so many of them are in so much worse a demographic position then ourselfs.
In short our greatest liability is the relatively small size of our younger generation.
The inflation will make this problem much worse for us.
China, Germany, South Africa and RedDog#1 criticise US stimulus (US policy was "clueless")
On the other hand, could mega-stores like Walmart and Target even exist if their container-ship loads of slave labor Chinese crap went up 25 to 50% in cost? Can US manufacturers relocate the dies, molds, and machinery that they sent over and still hold title to in China back stateside or even find enough experienced and affordable (these two factors are all but contradictory) personnel to run it?
We haven't had a real trade war since the 30's and that one helped lead to a shooting war soon after. Someone ought to take the comment about the QE2 policy and just hang a sign on the White House reading "Clueless-R-Us".
A banker, or anyone else for that matter, looks out for their own best interests.
When that “best interest” is in conjunction with the nation’s best interest, then we prosper.
When the two are at odds, we flounder.
It is the responsibility of a government to provide the environment that will serve everyone’s best interest.
Our government clearly does not do this.
It serves it’s own best interest.......
We don’t have a “private” central bank. We have a central
bank that is beholden to the government and keeps their
activities secret.
It’s a real pickle of a problem to get a good economy going. I am by no means an expert. I have taken classes, and read some of Milton Friedman’s works.
It does appear that the “free trade” agreements have been detrimental to a lot of American Business. My contribution is that I just don’t buy Chinese stuff.
I went to get a candle from walmart the other day - almost all were made in China. I finally found some “organic” candles in the craft section made in the USA - they didn’t even cost more, so I bought them.
Since I am retired, I can spend a little time to do that. If there is no demand for Chinese goods, then at least our dollars are not going to build up their military.
Very true. One point that people dont see right now. The time for China to liquidate it's bond position has PASSED. If they were to do that now, the dollar would plummet and they would lose their shirts in the inevitable dollar decline. Bennie has China's leaders by the short and curlies AND his hand is in their wallet.
the problem is that no one with any sense will start a business that would develop into something great while obama is in office and for a long time after. Increasingly, politics are becoming more and more unstable and there might be a Republican business friendly administration one day, but the next, a Democrat administration who is attacking businesses the way Obama has. Until there is political stability and a guarantee of rights of businesses to operate without undue interference, then businesses are going to give the US a wide berth from here on out.
I understand, but the Chines aren’t fools and have suffered by European exploitation in the past. How could one tell how much of their Dollars have already been spent in material purchases in places such as Africa, and the US for that matter?
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