‘The Federal Reserve Is Causing Turmoil Abroad’

” Consider, for example, that much of world trade, particularly in basic commodities like food grains and oil, is denominated in U.S. dollars. When the Fed floods the world with dollars, the dollar price of commodities goes up, and this affects market prices generally, particularly in poor countries that are heavily import-dependent. Export-dependent nations like China try to maintain exchange-rate stability by inflating their own currencies to buy up dollars.”

read it here:

http://online.wsj.com/article/SB10001424052748704657704576150202567815380.html?mod=googlenews_wsj

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