Now Ben Bernanke - the U.S. central bank chief - is printing money to restore the economy. But soon, he will most likely be printing money to finance government spending only bigger.
When investors finally realized what was happening, they immediately would reduce the ownership of their dollars and U.S. bonds. As a result, the longer the Fed would print even more money to cover the U.S. deficit until ... the dollar falling faster than the U.S. central bank's ability to print new money.
Basically, the Federal Reserve is doing a really dangerous game, which can threaten the stability of world financial system. Once the toothpaste is already out of the tube, are very difficult to enter them again.
No comments:
Post a Comment