Germany's finance minister has launched a fierce attack on the US Federal Reserve, saying its decision to pump more money into the economy would create extra problems for the rest of the world."I don't think that the Americans are going to solve their problems with this, and I believe that it is going to create extra problems for the world," Wolfgang Schaeuble said on ARD public television late Thursday."We are going to discuss this in a critical fashion with our American friends both in bilateral talks and of course at the G20 summit in South Korea next week," he said.
Back in December we pointed out the patently obvious: in the absence of an external rebalancing mechanism, i.e., a free-floating currency, the only option for the bulk of the periphery to regain competitiveness was through ongoing wage collapse and persistent localized depression.
Banda Aceh (Indonesia) (AFP) - Gay sex could be punishable by 100 lashes of the cane in Indonesia's staunchly conservative Aceh province if parliament passes a draft law that critics say violates basic human rights.
Oskar Lafontaine, the German finance minister who launched the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is "leading to disaster". "The economic situation is worsening from month to month, and unemployment has reached a level that puts democratic structures ever more in doubt," he said.
The Federal Reserve has ended the third installment of its bond-buying, or quantitative easing (QE), program – which marks the end of a historic experiment it undertook in the wake of the 2008 financial crisis.
The first round of purchasing bonds was initiated by the central bank in 2008 to stabilize the financial system. The second installment, which lasted only a few months, and the third one which began in 2012, were aimed at boosting growth and bringing down the unemployment rate.