The US’s “Economic Syria”
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Posted 27/08/2013
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The US’s “Economic Syria”
As the US President ponders whether to commit the US military to Syria as the ‘world police’ at great cost to US citizens and with a host of unintended consequences, his Fed Chairman faces a similar dilemma with Quantitative Easing. He knows they shouldn’t keep printing money (as it is unsustainable in terms of debt accumulation and inevitable hyper inflation) but he also knows if he does stop the ‘printing’ it will cause extreme pain around the world as bond yields rise and the massive amounts of global debt become impossible to service and the markets dive as they deal with withdrawal of cheap easy money. The IMF on Friday called for caution on tapering as it will have dire consequences around the world. Like Syria they are damned if they do and damned if they don’t.