IMF poised to print billions of dollars in 'global quantitative easing'

Originally posted by disgustedbyhumanity
reply to post by RcknShdw

 

All money is fiat. This is a way of putting money in the system which will not require countries to go into further debt. The system needs cold hard cash, yet none can afford to print it at this point. This is a good solution and if it leads to a one world money system I am all for it. We have to face the fact that global trade is here for good. In order for it to be fair, we have to use the same currencies. Otherwise you can never have true supply and demand.

Ideally, yes. Realistically, this won't work. Who gets to print the global currency? Which currency will it be based on? Whose portrait is on each bill (oh, you know it would be a big deal)?

As for the original topic, the last two lines of the article I found particularly interesting:

Simon Johnson, former chief economist at the IMF, said: "The principle behind it is that everyone would get bonus dollars and instead of the Federal Reserve having to print them, everyone gets them.

"The objective is to create a windfall of cash. However if everybody goes out and spends the money it could be very inflationary."

From what I can gather, this new money will not replace currencies but be held as reserves for each government. I don't understand how this won't lead to more inflation whether the governments spend it or not.

The conspiracy theorists could be right in that this is a stepping stone to a global currency, but I think it's more likely that this new currency simply supercedes individual currency rather than replaces them. I think the IMF is going to try to tie all currencies to this new, global one since the US Dollar is tanking. Going back to my previous point, I don't think this will work either. It'll be like the sub-prime loan scandal on an international level.

I'll definitely be keeping an eye on this, at least from a conspiracy point of view.