And East Timor, the British Virgin Islands, Panama, El Salvador, the Federated States of Micronesia and several other countries: QE3. Inflation. See, they all use the U. S. Dollar as their actual money, though some of them mint their own cent-value-equivalent coins as well; another handful of countries use our dollars alongside their own money at a fixed rate of exchange. While the various dollar-shrinking tricks the Feds are pulling may not make all that much difference to an Ecuadorian buying Ecuador-made goods in Ecuador, he's certain to feel the pinch when he goes to buy a Japanese TV or a Korean car -- or a celphone made in China. (And let's not even talk about what it does to the tourist trade in the British West Indies, though you can bet they are.)
So remind me again how the Administration is such a friend to the little guy internationally? Pity's sake, not only do the folks in those countries have no more chance to vote on the Great Mind (ahem) in charge of the Fed than we do, they can't even vote on the guy who picks him.
Best of all? Some of those countries ended up switching to U. S. dollars after their central bank tried to print its way clear of economic woes. It's the Wile E. Coyote school of economics: does jumping off a cliff work any better when the cliff is a hundred times as high?
3 weeks ago