This is about right.
The major economic players of the world are in the midst of devaluing their currencies, or attempting to. The goal is to increase competitiveness of exports and boost domestic economic activity especially in manufacturing. One of the problems is that this sort of thing often results in price inflation, often damaging inflation and societal disruption. The last big currency war happened in the 1930s.
One would think with the economy on the rise (as we’ve been told that it is) this wouldn’t be the case. All that money printing by the Fed and an exec at Walmart is seeing the worst start to a month in his time with the company? Clearly this executive must have misplaced a decimal point or something. Things are going great.
We now have the announcement that Ben Bernanke’s Fed will buy $45 billion a month in treasuries, QE4, until unemployment reaches 6.5% or his version of inflation exceeds 2.5%. What a surprise!
The Bloomberg editorial below (representing the official view of the Bloomberg organization and therefore the views of its owner, Mayor Bloomberg) demands more Federal Reserve money printing. What is the Fed waiting for, the article rhetorically demands.
Note that the efficacy of money printing is just assumed. No argument is offered for why it will work. Not an instant is spent answering the objection from many that this very policy is the cause of the present predicament and the cause cannot be the cure.
It isn’t surprising that Bruce Bartlett called Governor Perry “an idiot” for criticizing Fed Chairman Bernanke’s out-of-control money printing.