Backlash Against the Fed's $600 Billion "Easing"

The Federal Reserve thought everyone would be happy that it's printing money to pay off our massive national debt. Well--surprise--not everyone is! Can you say "currency war?"

The US Federal Reserve’s decision to pump an extra $600bn into the economy has galvanized emerging market central banks into preparing defensive measures and sparked criticism from leading global economies.

The Fed’s initiative, in response to rising concern about the weakness of the US economy, has fuelled fears of a sharp drop in the dollar and a fresh flood of capital inflows into emerging markets.  China, Brazil and Germany on Thursday criticised the Fed’s action a day earlier, and a string of east Asian central banks said they were preparing measures to defend their economies against large capital inflows.

Guido Mantega, the Brazilian finance minister who was the first to warn of a “currency war”, said: “Everybody wants the US economy to recover, but it does no good at all to just throw dollars from a helicopter.”  Mr Mantega added: “You have to combine that with fiscal policy. You have to stimulate consumption.” Germany also expressed concern.

FT.com / Global Economy - Backlash against Fed’s $600bn easing

Need to Lose 9 lbs in Only 11 Days? - Learn the Secrets Behind The Idiot Proof Diet and save 50% with this secret bonus code.