Fed Takes a Shellacking

The business press has been reporting about the "shellacking".   No, not that one, this one is being administered to the US Federal Reserve bank by foreign governments.  So I guess the Fed Reserve must be doing something wrong, right?  Wrong.

The Fed Reserve is finally standing up for the American economy against currency manipulation (by the Chinese) and lack of demand spurring policies (Germany) that have sealed the fate of the American economy.

Here's what British Economist Roger Boutles recently said:

" The fundamental fact we have to bear in mind all the time is that America has been supporting world demand, and most of the countries in Asia have been doing the opposite. And that as far as I'm concerned means that the Americans are the good guys and the Chinese and the other Asians are the bad guys. In simple terms, they've been living off the fruits of demand created in America and the Anglo-Saxon world and it can't go on. Germany should be in the dock as well."

Mr. Boutles continues:

"The fact that German demand is as weak as it is, is Germany's fault. Who else's fault is it? The British fault? The American fault? How can we control German domestic demand? The fact of the matter is, this is a country - and China's another one - which adopt mercantilist principles; that's to say, they think it's perfectly okay to get richer at the expense of other countries. Well of course, for the world as a whole, that can't work and we are coming to pay back time."