by Lew Rockwell, Lew Rockwell:
Call it the monetary theater of the absurd. After all, here is what a determined currency manipulator did between September 2002 and July 2008.
To wit, it pumped about $200 billion of new dollar liabilities into the world financial system, thereby expanding the Fed’s balance sheet by 26%. Clearly, global traders and US trading partners didn’t welcome that flood of freshly minted fiat currency because during the same period, the traded-weighted dollar exchange rate plunged by 25%.