IMF poised to print billions of dollars
Is it just me or do you get a great sense of foreboding when your read that headline also ?
( Full headline "IMF poised to print billions of dollars in 'global quantitative easing' " in DT 18Mar09, Edmund Conway )
It looks like no one will stump up the cash for the IMF, so the IMF will be allowed to create it. (Given a similar dilemma isn't that what our government is doing ? ) In reality this just steals it from those who hold cash. A form of global wealth redistribution. Must be Gordon Brown's idea.
Holding notes with the words "I promise to pay the bearer on demand" is getting more and more risky.
2 comments:
I just heard that the Federal Reserve is printing a trillion dollars. This is absolutely the WORST thing to do. Bye-Bye America.
It's time to revolt.
- a concerned American conservative.
I fear that the US faces the same dilemma as the the British Empire did sixty years ago.
For the Brits the gradual increase in difficulty of holding an empire became suddenly impossible when the bills for two World Wars had to be paid. The result was a couple of decades of decline and not a little national humiliation - specifically at the Suez crisis.
The US national debt is insane,as is your balance of trade. All this is going to be made worse by your politicians denying even the benefits of creative destruction by allowing failing companies to go under.
This matters to the world as the US holds the world together and is the ultimate guarantor of law and order ( for which thanks ).
We are all in for an alarming ride.
I suspect the US may be fast approaching its Suez moment. The point when finance requires a pull back and reduction in military and diplomatic scope by the US.
I hope I'm wrong here, but its what I expect.
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