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11/16/2010

The unlikely reaction to QE2

Much as the Americans may want to think that the whole world is made up of ignorant fools, and they can keep on printing money on worthless pieces of paper for as much as they like, the Quantitative Easing2 is triggering a reaction from around the world that could lead to a backlash of unimaginable proportion. While MNCs took a whole year to earn a couple of billions, the Fed just printed $600 b for its own use. No need to work or sweat. Step aside hedge funds, loan sharks, pirates, robbers, con men, and bankers. The Fed can make more money and easier than all of you combined. The world is looking at this QE2 in shock and awe. Even Germany, a hardcore ally of the US could not believe it and had come out openly to criticize this move. Unwittingly, the QE2 has aligned the forces of the world against the US, an unpredictable reaction. They are all going to lock out American dollars from their economies, maybe abandoning it. And the consequences of such a world reaction can be deadly for the US. The banana currency is ripening and will soon become thrash. The nightmare is just beginning for the Americans and their evil Empire. Will it disintegrate?

4 comments:

Matilah_Singapura said...
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Matilah_Singapura said...

It is not the Fed on its own. If Malaysia or Indonesia printed massive amounts of their kachang-puteh rupiahs (it has happened) and ringgits (ditto), no one would care.

People like Soros and other hedge fund honchos would short their currencies, and local politicians will whip up anti-western sentiment to score political points.

The US Fed however has so many "customers" and "partners" -- the international banking sector, war profiteers, welfare recipients...it is an enormous list.

I think redbean, you are a bit naive here -- most of the world loves "cheap money". Speculators love it, real estate owners love it, corporations love it, gold-hoarders love it, unions love it...everyone who worships the economic god John Maynard Keynes -- who treat the money supply like an "accelerator of a car" -- economy down: press for more "gas"; economy over-heating: take your foot off the gas.

The voodoo this mechanism is based on is myth of what is known as "aggregate demand". This fun video describes why Keynes is wrong.

Monetarily speaking, we live in a Keynesian world of fiat currencies and the ability of central banks to print money out of thin air.

Everyone is guilty: Japan, China, India, Brazil, Australia...even your beloved Singapore -- thanks to that idiot Goh Chok Tong -- Asian spawn of Lord Keynes.

The US prints, the bankers comply. It is a cosy relationship. Which bank do you know of that wouldn't jump at the chance to get it's greedy hands on cheap money?

It is unfair to blame the US alone. Without their "networks" no one would accept their counterfeit currency.

Film: The Money Masters (Google video 215 min)
website

Anonymous said...

Hi redbean, sorry to say, your blog seems to be responding terribly slowly. Whst's wrong?

Chua Chin Leng aka redbean said...

Hi, it may not be my blog. I got the same experience a few times. turn on my Norton and discovered a lot of tracking cookies in the system. After purging by Norton it returned to normal. My office system no problem as there are many firewalls.

Try to clean up with your anti spyware or Norton. Cheers.