China must build a great wall between its country and the grave threat of a destroyed dollar, warns the Chinese central bank. Fortunately, the article also draws attention to “quite a few wise Westerners” who understand that you can’t just create your own reality using the printing press.
Everyone is singing the praises of the Federal Reserve’s next round of “Quantitative Easing” to the tune of nearly $1 trillion. Those in favor extol the virtues of the magical printing presses as if we all had been given a free cruise on the ship Queen Elizabeth 2. The truth for most of us is closer to 3rd class tickets on the Titanic.
And the whole world is right.
“With all due respect, U.S. policy is clueless,” German Finance Minister Wolfgang Schaeuble told a conference. “(The problem) is not a shortage of liquidity. It’s not that the Americans haven’t pumped enough liquidity into the market, and now to say let’s pump more into the market is not going to solve their problems.”
[This article is excerpted from chapter 3 of Politically Impossible?]
