From CRI English and ADF:
Federal Reserve is Causing Turmoil Abroad: U.S. Media
2011-02-24 00:59:50 Xinhua Web Editor: Zhangxu
Probably few of the protesters in the Middle East connect their economic travail to Washington. But central bankers complained, most recently at last week's Group of 20 (G20) meeting in Paris, that the U.S. is exporting inflation, the Wall Street Journal said on Wednesday.
"China and India blame the U.S. Federal Reserve for their difficulties in maintaining stable prices. The International Monetary Fund (IMF) and the United Nations, always responsive to the complaints of developing nations, are suggesting alternatives to the dollar as the pre-eminent international currency. The IMF managing director, Dominique Strauss-Kahn, has proposed replacement of the dollar with IMF special drawing rights, or SDRs, a unit of account fashioned from a basket of currencies that is made available to the foreign currency reserves of central banks," writes George Melloan, a former columnist and deputy editor of the newspaper's editorial page.
Melloan contended that the U.S. central bank chief Ben Bernanke has made it clear that his policy is to "inflate the money supply".
"His second round of quantitative easing, the controversial QE2 policy to systematically purchase 600 billion dollars in Treasury securities with newly created money, serves that aim. But even for the U.S., it is uncertain that Bernanke can hold to his 2 percent inflation target. Oil is going up. Foodstuffs are going up. And when the Fed sneezes money, the weak economies of the world, and the poor masses who are highly vulnerable to price rises in the necessities of life, catch pneumonia," noted the article.
The Fed in November 2010 decided to purchase a 600 billion dollars of longer-term Treasury securities by the end of June 2011, a pace of about 75 billion dollars per month, which had invited criticism both at home and abroad.
Federal Reserve is Causing Turmoil Abroad: U.S. Media
2011-02-24 00:59:50 Xinhua Web Editor: Zhangxu
Probably few of the protesters in the Middle East connect their economic travail to Washington. But central bankers complained, most recently at last week's Group of 20 (G20) meeting in Paris, that the U.S. is exporting inflation, the Wall Street Journal said on Wednesday.
"China and India blame the U.S. Federal Reserve for their difficulties in maintaining stable prices. The International Monetary Fund (IMF) and the United Nations, always responsive to the complaints of developing nations, are suggesting alternatives to the dollar as the pre-eminent international currency. The IMF managing director, Dominique Strauss-Kahn, has proposed replacement of the dollar with IMF special drawing rights, or SDRs, a unit of account fashioned from a basket of currencies that is made available to the foreign currency reserves of central banks," writes George Melloan, a former columnist and deputy editor of the newspaper's editorial page.
Melloan contended that the U.S. central bank chief Ben Bernanke has made it clear that his policy is to "inflate the money supply".
"His second round of quantitative easing, the controversial QE2 policy to systematically purchase 600 billion dollars in Treasury securities with newly created money, serves that aim. But even for the U.S., it is uncertain that Bernanke can hold to his 2 percent inflation target. Oil is going up. Foodstuffs are going up. And when the Fed sneezes money, the weak economies of the world, and the poor masses who are highly vulnerable to price rises in the necessities of life, catch pneumonia," noted the article.
The Fed in November 2010 decided to purchase a 600 billion dollars of longer-term Treasury securities by the end of June 2011, a pace of about 75 billion dollars per month, which had invited criticism both at home and abroad.
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