Global Ambitions and Decline- Emergence of the Interregional Asian Triangle and the Relegation of the US as a Hegemonic Power. The Reorientation of Europe
13. Afterword 95
13. Afterword 13.1. The present situation of departure – Threat of inflation as the basic problem The Czech Prime Minister, Mirek Topolanek, called US President Barack Obama’s crisis management policy the „road to hell“ (t-online.de, 25.3.2009). The stimulus packages, he believed, would even undermine the stability of the global financial markets. In order to finance its economic relief measures, the US would have to bring government bonds to the market, for which there would however be no buyers at present.39 There are two questions that need to be answered: When does the threat of inflation arise and how can inflationary developments be stemmed in time? In reality, the US Central Bank (FED) felt compelled to buy up government bonds. For if there are no – or merely insufficient – purchase orders from private buyers, the state does indeed receive „fresh funds“ to the tune of the amount paid by the Central Bank for the bonds, though this amount is not balanced by a corresponding reduction in the quantum of money in the non-state sector. Over the period of validity of government bonds, there is an increase in the total quantity of US dollars in circulation – in other words, there is an increase in inflation potential. It is only later, when the state seeks to redeem its bonds from the central bank and deposits the corresponding value in cash, that it once again curtails the inflation potential that had opened up. Topolanek’s criticism is unjustified in periods of crisis during which inter-bank transactions come...
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