More QE expected in U.S. this evening

Radiantsoul

de1amo wrote: »

wasnt QE the economic downfall of 'between' wars Germany--in the end it ended up with total devaluation of the german currency and foreigners buying up all the assets for little money--i fail to see how printing money cannot lead to a worthless currency--looking from outside of the uk as i do i know my pound exchange has gone down 17pc in 4 years and its excelerating!--if the currency doesnt become worthless the tightining of the purse strings will be so severe we will be back to high unemployment and the austerity of the 70s when the uk was on the verge of becoming a third world economy--i saw the forcast of 1,6 million further job losses being predicted for the near future!--

Germnay was something different, but aside from all that it didn't precisely become a third world economy. As demonstrated by their world beating army!

gagahouse

Radiantsoul wrote: »

They are quite wealthy, but as a major power they have a virtual complete disinterest in projecting their power beyond their borders. There has never been a US Empire, and there plans to democratise the world often seem to rely a small number of troops spending a couple of months sorting things out.

Afghanistan, Iraq, Colombia, El Salvador, Nicaragua, Vietnam, North and South Korea, Japan and Europe WW 2, Grenada, Panama, proxy wars in Africa and Asia during Cold War - I could go on and on, there are plenty of examples of them projecting their power. They have hundreds of bases all over the world and battle carrier groups in the main shipping lanes.

The QE they will unleash tonight is another projection of that power, the empirical power of being the issuer of the worlds reserve currency.

Radiantsoul

gagahouse wrote: »

Afghanistan, Iraq, Colombia, El Salvador, Nicaragua, Vietnam, North and South Korea, Japan and Europe WW 2, Grenada, Panama, proxy wars in Africa and Asia during Cold War - I could go on and on, there are plenty of examples of them projecting their power. They have hundreds of bases all over the world and battle carrier groups in the main shipping lanes.

The QE they will unleash tonight is another projection of that power, the empirical power of being the issuer of the worlds reserve currency.

Those countries are not part of a US empire and many have not even really bought into US values. With the exception of Germany, Japan and Korea I would say that US military interventions have been something of a disaster.

The QE is rather borne of weakness.

de1amo

Radiantsoul wrote: »

Germnay was something different, but aside from all that it didn't precisely become a third world economy. As demonstrated by their world beating army!

i think the military were armed by the Nationalists who used 'germany for germans' as the back ground of its policies and rise--they expelled foreigners and exterminated the Jews and took their wealth! different times but the banks are pumping the us and uk with cash--it will have to be accounted for in the end!

nearlynew

Radiantsoul wrote: »

They are quite wealthy, but as a major power they have a virtual complete disinterest in projecting their power beyond their borders. There has never been a US Empire,

Is this meant to be a joke?

de1amo

i didnt laugh but it seems laughable--i cant remember a recent war that the usa hasnt been involved in-they dont empire build but they protect their interests--ie oil rights in the middle east!

gagahouse

Radiantsoul wrote: »

Those countries are not part of a US empire and many have not even really bought into US values. With the exception of Germany, Japan and Korea I would say that US military interventions have been something of a disaster.

The QE is rather borne of weakness.

They may not be part of a traditional "empire" but they do have bases in many of these countries and can exert and influence if they want to. I'm not disputing that there isn't an "American Empire" in the traditional sense, just the notion that they don't project their power beyond their borders given their recent history.

The Iraq and Afghanistan interventions could be seen as a disaster if you believe their objectives are to "democratise" these countries, I don't buy this - rather they are part of their attempt to control access to the Eurasian "prize" c.f Zbiegnew Breszinksi "The Grand Chessboard: American Primacy and Its Geostrategic Imperatives"

Back OT, I agree QE is borne of financial weakness but it will have an impact on the rest of the world, especially as long as China maintains its peg to the dollar. Show me a major regional trading bloc (US, EU, Asia) that hasn't embarked on a form of QE in the last 3 years, this weakness is relative, I would argue the US has more firepower when it comes to QE.

Radiantsoul

I agree the US can engage in a lot more QE as the money will flow overseas and sit in foreign bank reserves(presumably they will ultimately be exchanged at a devalued rate for US assets). But it weakens the role of the US as a reserve currency. Personally I think the US will continue to be the number one power until at least 2050.