Contrary to the way the financial world may be presented in the mainstream media, the Fed is at the head of the global central banking syndicate that runs the show Don Vito Corleone style, where should any foreign central banks get out of line, will soon be in for a currency markets massacre as they see their currencies soar against the dollar and thus destroying their ability to export, which their economies are addicted to drug addicts style, as the official policy of the U.S. since the midst of the cold war has been to control the worlds financial system by means of operating a continuous large trade deficit, as covered at length in the October 2010 article (12 Oct 2010 - USD Index Trend Forecast Into Mid 2011, U.S. Dollar Collapse (Again)?).
Whilst many in the mainstream press have finally clocked onto the fact that the Fed intends to inflate (about a 18 months behind the curve), what no one appears to have clocked onto so far is that the BIG SECRET is that the Fed intends on INFLATING THE WHOLE WORLD ! It is pushing the worlds governments reliant on exporting to the U.S. into devaluing their currencies by means of printing money (See Ebook QE section).
Thus against the Fed INFLATE or DIE policy, all foreign central banks are fighting hard to maintain their pegs to the downwards spiraling U.S. Dollar, which effectively means that all currencies are spiraling lower hence the whole world is inflating at the Feds whim. For instance emerging markets such as Brazil repeatedly cry out that they are being flooded with too much foreign capital that is driving up their currencies, therefore they are forced to print and debase their own currencies i.e. INFLATE! (are you listening delusional deflationists ?) THE FED IS INFLATING THE WHOLE WORLD!
How can the US Fed get away with printing money and inflating the whole world ?
You may wonder that the dollar's strength (lack of collapse) in the face of money printing and ever expanding debt accumulation is as a consequence of underlying US economic strength or huge amounts of (Invisible) gold reserves at Fort Knox. The real reason why the US is able to get sway with printing unlimited amounts of money is the US Military, as the US remains the worlds sole hyper military power following the collapse of the soviet union and increasingly relies on global military power to back up the dollar as the worlds primary means of exchange, as any country that chooses not to comply will likely be on the receiving end of a 1000 tomahawk cruise missiles as Libya is experiencing today or even worse as Iraq has experienced during the past 8 years.
The U.S. Military Empire targets all those bastions of mediums of exchange that compete against the dollar, which is why the literally super sweet oil rich state of Libya presents such an ideal target for not just the U.S. but also the competing imperialists of Britain and France, regardless of the fact that they are choosing to back and about to arm rebels of North East Libya, an area that ranks as the Al-Qeeda recruitment capital of the world (as a proportion of population) as per the 31 page West Point Study that analysed the backgrounds of captured foreign guerrilla fighters in Iraq during 2006-2007.
Unfortunately, the death of all empires comes in the form of a short-lived super nova explosions of military expenditures, which is the path that the US appears to have chosen and hence the tendency to increasingly use shock and awe military force around the globe as the military industrial complex remains the only significant growth industry to restock the missiles and bombs and equipment expended
Walayat Street - Nadeem Walayat's Financial Markets Trading and Analysis Site
Fisk have been taken apart so many times by fact checkers that his name is synonymous with the method 'fisking'...
