QE quantitative easing same old government fraud
One day, the king of ancient Babylon summoned his treasury overseer and exclaimed, “I need more money to wage war on those Hittite terrorists! I looked in the great treasure chest and it’s nearly empty. There are hardly any gold coins left,” he thundered.
“Oh Light of the Euphrates,” groveled his terrified minister, “we are out of gold. Your wars have become too expensive.”
“But I have a solution, your celestial greatness. We will quietly trim the amount of gold in our imperial gold coins to make them go further. No one will notice.”
Today, the name for debauching a nation’s currency is called “quantitative easing (QE),” but it’s still the same old fraud committed by financial flim-flam men.
Washington is flooding financial markets with $600 billion of worthless dollars, hoping a rising tide of Monopoly money will somehow lift America out of recession. The US government is stoking worldwide inflation in order to lower its outstanding debt by repaying creditors with depreciated dollars.
The rest of the world is boiling angry at Washington. Just before last week’s G20 economic summit, China in an unprecedented, stinging rebuke, colded Washington for “deteriorating debt repayment capability,” and predicted quantitative easing would lead to “fundamentally lowering the national solvency.”
China is the largest holder of US government debt. Washington has been blasting China for manipulating its currency to keep the value low – which is quite true. Embarrassingly, Germany and Brazil just accused the US of being as big a currency manipulator as China – which is also quite true.
[Excerpt of an article by Eric Margolis]