[lbo-talk] QE2, second order explanation

[Chuck Grimes]

Back to the point of QE2. It never seemed about encouraging lending in the 
US economy in the first place. According to Michael Hudson, almost free US 
dollars encourages US speculators in foriegn currencies markets. That makes 
sense to me. Raid another economy...

That's the lead story today at Democracy Now:

http://www.democracynow.org/2010/11/5/new_600b_fed_stimulus_fuels_fears

If you don't like the video or Amy Goodman's voice, the full transcript is 
below.

Just on intuition, given two explanations for a fiscal policy, one 
relatively beign and one vicious, I'll always pick the most vicious first. 
The idea that somekind of currency war is behind the US QE2 policy sounds 
just about right.

In my limited understanding one thing that argues against such a plot, is it 
is just as conspiratorially complex and opaque as the more beign 
explanation. Also, I don't trust a guy in suspenders...

My butt simple explanation. The US government gave the US banks 600bn more 
in almost free money to spectulate and they go abroad and wage war on others 
for higher profits than they can get at home.

CG