Obama, Goldman Sachs and now the World Bank President Defend Bernanke on QE2

[bobbyw24]

Fears that quantitative easing by the U.S. will lead to a surge in capital flows to emerging markets have been overblown, World Bank President Robert Zoellick said.

“Some of the concerns have been overstated,” Zoellick said in a Bloomberg Television interview in Singapore today. “Even if you didn’t have quantitative easing, as long as you have differential growth rates you’re going to see capital flow to these emerging markets.”

The U.S. Federal Reserve last week announced plans to buy $600 billion of long-term government bonds in its second effort at so-called quantitative easing, or QE2, aiming to stoke U.S. economic growth. Policy makers from Asia to South America responded by warning it could depress the dollar and spark capital flight to emerging markets.

While the Fed’s move has “made the debate tenser,” it’s unlikely to create a flood of additional funds internationally, Zoellick said. These tensions can lead to “a downward spiral of protectionism,” he said.

http://www.bloomberg.com/news/2010-11-10/zoellick-says-concern-qe-to-boost-hot-money-flows-to-asia-are-overstated-.html

[Travlyr]

Ron Paul and Murray N. Rothbard teach us that inflation is an increase in the money supply. The "accepted" definition of inflations is "a measure of CPI" is obfuscation of the truth.

When the central bank prints money, that action is inflation, fraud and immoral theft ... plain and simple ... in broad daylight ... and the media pretends that it is simply monetary policy. I call them the "Opinion Cartel" because they dominate elections, but they really are shills for the power elite oligarchy and accomplices to criminal fraud.

Fiat inflation affect us immediately. The receivers of the new money (counterfeiters) are the beneficiaries, everyone else loses ... it's been that way for 97 years, so far.