President Obama Ridiculed at G20

Nov. 10, 2010 - PRLog -- President Obama is at the G20 meeting in South Korea and complained about trade imbalances between countries.  He was accusing China of manipulating their currency to keep their goods relatively cheap around the world.  

However, President Obama’s argument was directed back at him and the private bank in the US responsible for printing the currency, the Federal Reserve Bank, after the Fed announced it would buy $600 Billion of US Treasury Bonds, or US government debt.  This is equivalent to pumping another $600 Billion into the US economy after trillions have already been printed.  The net effect is the dollar will be further devalued making US exports cheaper.

President Bush and former Fed Chairman, Alan Greenspan, initiated the weak dollar policy to help the US economic recovery in 2001 by increasing exports.  Even after the US economy boomed with the formation of the housing bubble, the dollar was never allowed to strengthen to previous levels.

Today, the Fed is claiming it supports a strong dollar, but the rest of the world does not seem to appreciate the Fed’s antics. Germany, China and many other countries are sharply criticizing the US currency policy.  With the Fed making false statements such as this, the world wonders what the real goal of the Federal Reserve Bank could be.  Surely it does not seek the US economy to end up like Greece or Ireland, but that seems to be where the USA is headed.

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