The Dollar May End!!!

Favre appeared recently in "The End of the dollar" of Myrette Zaki is certainly better than what we hear from those who take the title literally. It's not about death or disappearance of the U.S. currency. Just the story, and especially the news of his slow decline in stages. Some passages seem suddenly very enlightening. Like this, this reflects the European perception of two irreconcilable approaches to the economy.

Ala expansionist policy and unconventional Federal Reserve opposed the plan cautiously and strictly European. Europeans are resisting the American vision, which is also that market. They seek to reduce budget deficits and considered, rightly, that the austerity efforts today will be rewarded in the future. Conversely, the word "austerity" has disappeared from the American vocabulary long ago, the latter being perceived by investors as "bad for growth."

So that even if U.S. growth in 2011 is higher than that of Europe, the price paid by the United States to have postponed indefinitely a return to austerity is incalculable long-term. Although more conservative, the ECB has chosen to limit as much as possible in November 2010, liquidity injections, such as practice shots at the Fed redemptions of government securities. With regard to redemptions of bonds of countries in difficulty by the ECB, they are limited to 72 billion euros at the end of 2010, 90 billion dollars. Including the purchase of private debt securities, the ECB is the guarantor of some 200 billion euros. In comparison, the Fed has made, by June 2011, the repurchase of securities amounting to 2.3 trillion dollars in its two programs of "quantitative easing" (QE I and II), 1000000000000 toxic securities, earning the nickname the passage of "financial shock". In other words, the comparison is almost absurd because the interventions totaled U.S. tenfold. Despite this, the ECB believes it has made a major concession by buying back shares because it has derogated from article 123 of the Treaty on the Functioning of the EU which outlaws "monetizing the debt", ie the process "run the printing press".