Fed draws criticism from abroad as emerging markets still reeling

Comments (20)
brotherkenny4 wrote:

I do believe that the fed and it’s member banks do think about the rest of the world. They think that it would be nice to own all of the countries and not just some. Turmoil. fear and threat are nice ways to control and cajole these other nations into accepting the debt and resource extraction process.

Jan 31, 2014 3:59pm EST  --  Report as abuse
robuba wrote:

there are things like capital controls similar to FD controls on emerging markets that EM’s should enforce.This could be done to avoid sudden huge liquity from FD and burst. Expecting US to coordinate and do everything on Global stage is impossible. It is a soverign nation and its responsibility is to take of her and as mkuch as possible the rest of the world. Hence QE is gradually is tapered and not tapered at one shot.

Jan 31, 2014 4:22pm EST  --  Report as abuse

Laugh, India, the home of gang rape, is telling us that we should consider impacts before we do something. Maybe they ought to clean up their own house first before throwing stones.

Jan 31, 2014 4:33pm EST  --  Report as abuse
deeplyCynical wrote:

These events will just make countries slowly economically-align themselves with other big players in the future and away from the self-centred USA ie* China and its RMB perhaps.

It’s countries with emerging markets or strong economic ties to EM countries that are complaining now about US policy, but in future it’ll be the US complaining about its diminished influence and economic status when the shift reaches a critical point.

Jan 31, 2014 4:59pm EST  --  Report as abuse
gunste wrote:

Low, near zero interest rates and printing money has only one end result: devaluing currency and inflation. And savers get negative returns unless they decide to speculate in the stock or other asset market helping build the next bubble or suffer in the next “correction”.

Jan 31, 2014 5:09pm EST  --  Report as abuse
sylvan wrote:

The US taxpayer does not have to eternally support the world economy. The Fed has been forecasting for many months that tapering would begin as growth picked up. If countries are still trying to ride our tailwinds, it is their own faults for not paying attention and standing on their own feet. It is quite rich that country like India would dare ask US for anything after their overt endorsement of allowing their diplomats to own indentured servants while serving in the US. What a flagrant slap in the face India, so no, figure it for India. Maybe deal with that gang rape thing too if you ever want another tourist dollar.

Jan 31, 2014 5:11pm EST  --  Report as abuse
dgss36a wrote:

“We would like to live in a world where countries take into account the effect of their policies on other countries and do what is right, rather than what is just right given the circumstances of their own country,..” That’s gotta be a finalist, so early in the year too, among the most fatuous statements of the year.

Jan 31, 2014 5:16pm EST  --  Report as abuse
Bob9999 wrote:

The Federal Reserve is not empowered to make foreign policy, which is the province of the President, acting through the State Department.

The Federal Reserve is not an agency of the executive branch and does not report to the President but is an independent agency — what is called a quasi-autonomous non-governmental organization is many other parts of the world. Its decision-makers are appointed for multi-year terms and are not subject to external authority. They have a statutory mandate to manage U.S. monetary policy in a manner that balances two conflicting concerns: minimizing inflation of the U.S. dollar, on one hand, and minimizing U.S. unemployment, on the other hand.

Jan 31, 2014 5:25pm EST  --  Report as abuse
GCGriswold wrote:

Will the FED be smart in handling this critical issue? Probably they will not

Jan 31, 2014 5:42pm EST  --  Report as abuse
birder wrote:

Why not the emerging markets Feds manage their own problems. Why wring their hands worrying about ours. I guess they just might be afraid that they will not be able to export so much of their crap to the US as they would desire. Perhaps their own citizens know better then to buy that crap. Ours sure do not.

Jan 31, 2014 5:44pm EST  --  Report as abuse
engineer99 wrote:

Playing the blame game. Its exports are smaller or about the size of countries with much much smaller population and land like Taiwan, S Korea, Singapore, etc.
It runs over a US$ 100 billion trade deficit and current account deficit every year consecutively at least for the last 5 years.
Its problems are self-made, not caused by USA.

Jan 31, 2014 6:00pm EST  --  Report as abuse
Kahnie wrote:

I think that the FED should be most concerned about the United State and it’s citizens. We come first. Other countries including India and China, etc. think about themselves first so why shouldn’t we? They just want us to bail them out of a rotten economy and infrastructure.

Jan 31, 2014 6:40pm EST  --  Report as abuse
GeorgeBMac wrote:

One could argue that the Fed caused the problem — so they should be responsible for fixing it…
… But the Fed has made it clear, they have two mandates: US employment and US inflation. EM’s are own their own…

But the US will probably pay for this somewhere down the road as we lose the trust of our former friends…

Jan 31, 2014 6:54pm EST  --  Report as abuse
seafloor wrote:

@USAPragmatist2
There are mostly two types of political statements. One type had been, “We’re better off than the others.” The other type is “The others have an even worse time than we do.” You won’t laugh for long.

Jan 31, 2014 7:01pm EST  --  Report as abuse
Mott wrote:

All this BRIC-hype, emerging market growth and the like, amounted to a mere less than 10% revenue from those countries while the majority revenues came from north-American and European consumption. While the decade(s) of unregulated manufacturing polluted the environment in these geographies to the point of some regulations, now we see active lobbying for illegals to be legalized for local work pool saturation to drive-down wages but regrettably, this move will break the social support infrastructure and cause more issues for the long-term.

Jan 31, 2014 8:11pm EST  --  Report as abuse
inkydinky wrote:

Baloney. The PIGS, BRICS, and Nafta tyes can shove it. They have been allowed to steal over 6 million American jobs with no consequence to them or the multinationals who have had their noses in the trough.

Let their currencies crash!. Then let multinational EPS translation crash as well. The Fed has done nothing but destroy the $$ since Greenspan.

Time to share some suffering. As for the IMF, surprised they had the time from their latest lobster-champagne brunch to issue a
statement.

Round up the economists, put ‘em a sack and throw them in the river. the world would be a better place.

Jan 31, 2014 9:20pm EST  --  Report as abuse
toonik_ph wrote:

Just heard about this.. wow.

http://www.insidertradingwire.com/klaus-kleinfeld-chairman-and-ceo-of-alcoa-inc-common-sells-3371107-worth-of-aa/

Jan 31, 2014 9:21pm EST  --  Report as abuse
Neurochuck wrote:

Much economic theory predicted, and the first signs appeared, of this capital flight of hot money weeks ago. So one could guess that the big hedge funds and bank traders went short EM currencies and “assets”.
Max returns and the time to buy is when the EM members of the G20 drain their foreign reserves and raise interest rates and collapse their economies and governments trying to avoid devaluation and default. Nations like India that have to import a lot of essential commodities look like the choicest victims. Many will blame the entire USA, but the global banksters run the game.
Feast for the Vampires.

Jan 31, 2014 10:03pm EST  --  Report as abuse
nose2066 wrote:

Maybe the guy who runs the central bank in India didn’t read his introductory finance textbook? If you want long term financing, then you sell equity or long term bonds and NOT paper that rolls over every thirty days.

The textbook also says that you should sell your equity and bonds when market conditions are favorable – when foreign investors are pouring money into the country. And you prepare for the time when market conditions are unfavorable.

Sounds pretty straight forward doesn’t it? That’s why it’s called introductory finance.

Jan 31, 2014 10:30pm EST  --  Report as abuse
sunnasutta wrote:

India, as you lay your bed, so you must lie on it! You could have said no to the influx of American money or at least should not have been so greedy!

Jan 31, 2014 11:55pm EST  --  Report as abuse
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