05 Nov 10
http://www.bbc.co.uk/news/business-11697483
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."
.....
any thoughts?
05 Nov 10
Originally posted by generalissimoThey can go suck an egg; US policymakers should make decisions based on what's good for this country, not other ones. We have vast amounts of idle economic resources and anything that will stimulate the economy is a good idea. Better than an expansionary monetary policy would be a gigantic program to repair our crumbling infrastructure, but the politicians will hardly support that (though the people overwhelmingly do).
http://www.bbc.co.uk/news/business-11697483
[b]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 e ...[text shortened]... ost.
He did not elaborate how the system should be changed."
.....
any thoughts?[/b]
05 Nov 10
Originally posted by sh76The criticisms make little sense anyway. The Fed's policy for the last decade has been to keep interest rates very low, This, of course, deflates the value of the dollar in the currency markets. But I didn't hear (and wouldn't care if I did hear) criticisms by foreign bankers and government officials.
China has some nerve criticizing US policy because it may deflate the dollar when the primary economic policy of China for years has been, in effect, to keep its own currency artificially low.
05 Nov 10
Originally posted by no1marauderBut it's good for the US if the world economy as a whole does well. So in this respect it may be a good idea to make concessions to other major economic powers if they do likewise and the net result is a benefit to the world economy.
They can go suck an egg; US policymakers should make decisions based on what's good for this country, not other ones. We have vast amounts of idle economic resources and anything that will stimulate the economy is a good idea. Better than an expansionary monetary policy would be a gigantic program to repair our crumbling infrastructure, but the politicians will hardly support that (though the people overwhelmingly do).
05 Nov 10
Originally posted by KazetNagorraYes, the huge trade deficit we run every year is sure beneficial to the workers in the US, esp. the ones who used to work in our manufacturing sector.
But it's good for the US if the world economy as a whole does well. So in this respect it may be a good idea to make concessions to other major economic powers if they do likewise and the net result is a benefit to the world economy.
The other major economic powers can kiss our ass.
05 Nov 10
Originally posted by no1marauderbut but but from what I see "the people" are voting consistently AGAINST investment in your crumbling infrastructure, insanely supporting the Right Wing ideologues who fund entities like the Tea Party.
Better than an expansionary monetary policy would be a gigantic program to repair our crumbling infrastructure, but the politicians will hardly support that (though the people overwhelmingly do).
05 Nov 10
Originally posted by no1marauderThe trade deficit is mostly a result of tax policy, not really of currency policy.
Yes, the huge trade deficit we run every year is sure beneficial to the workers in the US, esp. the ones who used to work in our manufacturing sector.
The other major economic powers can kiss our ass.
05 Nov 10
Originally posted by finneganThe people voted against incumbents who had done little to reduce overall unemployment. But every poll says that they overwhelmingly back government spending to generate jobs at this time.
but but but from what I see "the people" are voting consistently AGAINST investment in your crumbling infrastructure, insanely supporting the Right Wing ideologues who fund entities like the Tea Party.
It might seem schizophrenic, but there's a certain underlying logic. The message was sent; we'll see if the politicians in both big money parties continue to ignore it.
05 Nov 10
Originally posted by KazetNagorraWhether that is true or not is not relevant to the point you made. Trade has been a drag on the US economy for decades and policies that aim to increase trade by shedding American jobs have been a bust. The primary goal of US policymakers should be to start getting our idle capacity back to work ASAP; if policies that do that bother German, Chinese and South African government officials tough titty.
The trade deficit is mostly a result of tax policy, not really of currency policy.
05 Nov 10
Originally posted by no1marauderSo why do you bring up the trade deficit? Currency policy has not been a deciding factor.
Whether that is true or not is not relevant to the point you made. Trade has been a drag on the US economy for decades and policies that aim to increase trade by shedding American jobs have been a bust. The primary goal of US policymakers should be to start getting our idle capacity back to work ASAP; if policies that do that bother German, Chinese and South African government officials tough titty.