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Washington, D.C. (Nov 8) – Last Wednesday’s decision by Federal Reserve Chairman Ben Bernanke, leaves rest of world on edge.
European economists are now considering the Fed Chairman’s move an attempt to further isolate the U.S. from the world’s economy. Sentiment has it that the move perceives the U.S. decision to drop all interest in leading a coordinated global response to the most serious economic crisis of more than 70 years to be, a 1930’s style protectionist position.
From the East, China vocalized their disdain for the move referencing not only Wednesday decision but also, the U.S. planned proposal that exporters should limit their current account surpluses to 4 percent of the GDP. Cui Tianki, China’s lead negotiator in Seoul remarked the move would “hark back to the days of planned economies.”
From the Euro communities, Germany voiced their opinion stating, “With all due respect, US policy is clueless.” Finance minister Wolfgang Schaube added, “It’s not enough the American’s haven’t pumped enough liquidity into the market for them not to pump even more is not going to solve their problems.”
G20 members from Australia to South America have anted up their remarks regarding the erroneous moves by the fed chair, “[sic]… up until now, the rest of the world has been willing to tolerate unprecedented money-printing by the US and UK for that matter.”
Fears amongst the G20 group are that the Fed is creaating yet another asset-price bubble, that will lead to a damaging collapse. Brazil’s Guido Mantega, a well-respected finance minister stated, “While everyone wants the US economy to recover, it does no good at all to just throw dollars from a helicopter.”
As a result of another one of the Bush/Rove appointees, Ben Bernanke’s decision during the past week oil prices hit a two-year high in response to, driving the US printing presses into full gear.
Gold has broken another all time record, silver is up to a 30-year high all based upon fears of a further planned devaluation of the US dollar.
The world has witnessed the damage done by a Republican control economy and are now echoing the same words as leading think-tanks in the US that the economic plan the GOP set into play in the early part of this century is just not going to work.
Overall, it would seem about time that President Obama stepped up to the plate and cleared out these Bush era leftovers and provide his own stimulus plan for both the US and world economies by placing reputable persons in positions within the government and his administration and remove this economic “hangover” created during the past Republican administration.