QE3 and the looming currency war
this was interesting from the perspective of foreigners as the
"savers" who get hurt by the QE wealth transfer effect. The main point
of this article being that the first QE is like shock and awe. Then all
the foreign parties who use the dollar as the reserve currency develop
their own countermeasures to prevent the devaluation from harming their
economy. Subsequent QE cannot duplicate the benefits of the initial
wealth transfer. It is like a person's immune system developing
anti-bodies after the initial viral attack.
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