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Thursday, 21 October 2010
Uncle Sam's Role
Uncle Sam's global banks' greed and financial engineering created the worst financial crisis of 2008/2009 since the Great Depression. Subsequently the whole world was plunged into recession and many people were unemployed. With massive bailouts and stimulus packages, Uncle Sam managed to put the world's largest economy back on track. It lowered its interest rate to almost zero and also instituted "Quantitative Easing 1" - printing money! As a result the US dollars devalued and "cheap money" caused the world's commodities' prices, stock exchanges, real estates to escalate - my food prices,petrol, my cup of coffee, the gold jewellery that I buy, the property prices that are transacted are unimaginable! Now there is talk of "Quantitative Easing 2" (printing more money) - more cheap money looking for better yield creating bubbles in the world's stock exchanges, commodities, properties and prompting talk of currency wars. Uncle Sam must be mindful of what action it takes or does not take because it has implications and consequences for the whole world! We all hope and trust its action will always be appropriate, measured and most important of all responsible!!!!!
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Uncle Sam
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