Thursday, November 18, 2010

Quantititive Easing Explained, and the U.S.-China Currency Battle

This video is very clever. It "explains" quantitative easing for the layman.




This one is regarding the U.S.-China currency debate.



The Chinese don't seem to like the idea of QE, because it basically devalues the Treasurys that they buy from the U.S. I am personally neutral on this issue. On the one hand, I'd like to see China come off their hard currency peg, but on the other hand, I think it's hypocritical to call China a "currency manipulator" when we're doing the same thing via QE2, namely flooding the market with greenbacks to make the American economy more competitive.

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