My contention, not original and shared by many others, is that Ben Bernanke & Co. are making an already very shaky global monetary arrangement even worse despite what might be good intentions. Why? Implicit attempts at weakening the dollar for trade advantage, which effectively means US consumer purchasing power declines, seems counterproductive in a world which demand is scant and the globe's largest collective consumer market-the Eurozone-is heading deeper into recession territory.
As if that is not enough, there is more and it has a lot to do with emerging market funding needs. This is trickier to explain, so let's first review our current monetary arrangement first.