# IMF Chief Warns Federal Reserve



## k0xxx (Oct 27, 2011)

IMF Chief Has a Warning for the U.S. Federal Reserve

When I read these headlines my first thoughts were that she was warning the Fed that continued money printing would lead to bad things for the US economy. As it turns out, she warning that stopping continuing money printing might be bad for other economies.

She can't believe that the Fed would consider what is best for our own economy, and not worry about the effect on "emerging market economies", ie.,China, Russia, India, etc.

:comptoss:


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## BillS (May 30, 2011)

That was hilarious. As if other countries look at what's best for the world and not what's best for themselves.


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## biobacon (Aug 20, 2012)

so that means we cut it in half today right? LOL


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## CrackbottomLouis (May 20, 2012)

I really liked when she pointed out that "emerging economies" are blaming poor economic growth on inadequate "capital outflows". Just keep printing money and give it us until its worthless in other words. I guess they are hoping for a replacement currency and market for their goods to step up when that comes to pass.


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## Geek999 (Jul 9, 2013)

Economies are linked by trade. They are not completely independent, so the actions of central banks, including the Federal Reserve, do have global impact. Conversely, the health of the global economy impacts us.


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## TheLazyL (Jun 5, 2012)

k0xxx said:


> IMF Chief Has a Warning for the U.S. Federal Reserve..


Scary that she is it that position and doesn't have a clue.


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## k0xxx (Oct 27, 2011)

Geek999 said:


> Economies are linked by trade. They are not completely independent, so the actions of central banks, including the Federal Reserve, do have global impact. Conversely, the health of the global economy impacts us.


Yes economies are indeed linked by trade. The problem is if we just keep printing until we destroy our economy, then we won't be able to buy their goods anyway, and WE will be much worse off than we are now. So, do we do what's best for us, or for others that couldn't give a rats arse about us? No brainer, for me.


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## Paltik (Nov 20, 2012)

k0xxx said:


> So, do we do what's best for us, or for others that couldn't give a rats arse about us? No brainer, for me.


We have the option of the Fed doing what's best for us? That's news for me. The very existence of the Fed isn't good for us, what with it's board-members-by-political-appointment, fiat-money scheme, being complicit in the housing market distortions, banking industry distortions, etc.


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## Geek999 (Jul 9, 2013)

k0xxx said:


> Yes economies are indeed linked by trade. The problem is if we just keep printing until we destroy our economy, then we won't be able to buy their goods anyway, and WE will be much worse off than we are now. So, do we do what's best for us, or for others that couldn't give a rats arse about us? No brainer, for me.


I am not suggesting our current policies make sense as I. Also disagree with them. However, I fully expect various people around the world to spout off for or against those policies. They are affected and we can't just claim it is none of their business when they obviously are affected.

I think the head of the IMF is taking at best a very short term view and at worst a downright stupid view. On the other hand she is expected to speak on economic policy worldwide.


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## invision (Aug 14, 2012)

CrackbottomLouis said:


> I really liked when she pointed out that "emerging economies" are blaming poor economic growth on inadequate "capital outflows". Just keep printing money and give it us until its worthless in other words. I guess they are hoping for a replacement currency and market for their goods to step up when that comes to pass.


They are looking for a replacement currency. Right now there is a huge battle over pricing oil. Reason, china's use is outgrowing US. As a buddy of mine in the finance world said, it just makes sense... I just thought OMG!


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## invision (Aug 14, 2012)

k0xxx said:


> Yes economies are indeed linked by trade. The problem is if we just keep printing until we destroy our economy, then we won't be able to buy their goods anyway, and WE will be much worse off than we are now. So, do we do what's best for us, or for others that couldn't give a rats arse about us? No brainer, for me.


Absolutely true, but not in the eyes of Keynesian economists, which she, and most of the fed reserve have that opinion. It's really arse backwards thinking more debt is a good thing... That the printing raises the markets, and 100% think an up market is a good economy... There key flaw, when it is improperly inflated and not supported by real money investments - then it is nothing more than a bubble that will pop. Look at tech bubble - all the IPOs where if I had a dot com at end of name, massive debt, my stock would be worth billions - yet when the VC money ran out and I went out of business along with 90% of the others, the bubble popped. We had it in housing and personal debt... Now we have it again in equities, housing, personal debt, fed reserve debt, and a few more. Pop.


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## TheLazyL (Jun 5, 2012)

Would it be like me not living within my means and maxing out my credit card?

And the IMF/Federal Reserve's solution would be for me to go get another credit card?


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## k0xxx (Oct 27, 2011)

TheLazyL said:


> Would it be like me not living within my means and maxing out my credit card?
> 
> And the IMF/Federal Reserve's solution would be for me to go get another credit card?


Pretty much. 'Cause all of those stores that you are supporting pay employees, who then spend money and boost the economy. With the economy boosted, you get more work and can afford to spend even more. Trouble is when the banks start to notice how much debt you have and they start raising your interest rates. Soon the payments get too big and you can't make a credit card payment, that causes them to raise rates even more. Soon everything starts to snowball and you're in too deep to recover. That's pretty much where we're headed.


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## Geek999 (Jul 9, 2013)

Actually, despite the government, ordinary people are reducing debt.


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## BlueShoe (Aug 7, 2010)

How come a Protestant or a Catholic or even atheist can't be IMF head or Fed chief? Rhetorical question.


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## RevWC (Mar 28, 2011)

tenOC said:


> How come a Protestant or a Catholic or even atheist can't be IMF head or Fed chief? Rhetorical question.


Not enough experience!


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## Woody (Nov 11, 2008)

tenOC said:


> How come a Protestant or a Catholic or even atheist can't be IMF head or Fed chief? Rhetorical question.


They have Morals.


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