The global economy could be in the early stages of another crisis. Once again, the US Federal Reserve is in the eye of the storm.<\/p>\n
As the Fed attempts to exit from so-called quantitative easing (QE) \u2013 its unprecedented policy of massive purchases of long-term assets \u2013 many high-flying emerging economies suddenly find themselves in a vise. Currency and stock markets in India and Indonesia are plunging, with collateral damage evident in Brazil, South Africa, and Turkey.<\/p>\n
The Fed insists that it is blameless \u2013 the same absurd position that it took in the aftermath of the Great Crisis of 2008-2009, when it maintained that its excessive monetary accommodation had nothing to do with the property and credit bubbles that nearly pushed the world into the abyss. It remains steeped in denial: Were it not for the interest-rate suppression that QE has imposed on developed countries since 2009, the search for yield would not have flooded emerging economies with short-term \u201chot\u201d money… Federal Reserve Is In The Eye Of The Storm The global economy could be in the early stages of another crisis. Once again, the US Federal Reserve is in the eye of the storm. As the Fed attempts to exit from so-called quantitative easing (QE) \u2013 its unprecedented policy … Continue reading
\nThe Global QE Exit Crisis\u00a0<\/a><\/p>\n![\"Federal](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2013\/08\/Federal-Reserve-is-in-the-eye-of-the-storm.jpg\")
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