Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.

One of the effects of the Fed’s new quantitative easing program is that it will weaken the dollar slightly and possibly reduce the U.S. trade deficit a bit. That’s a positive thing, but the Wall Street Journal reports that international reaction to the Fed’s program is growing increasingly harsh:

Global controversy mounted over the Federal Reserve’s decision to pump billions of dollars into the U.S. economy, with President Barack Obama defending the move as China, Russia and the euro zone added to a chorus of criticism.

….On Monday, China’s Vice Finance Minister Zhu Guangyao said the U.S. isn’t living up to its responsibility as an issuer of a global reserve currency. The Fed’s move doesn’t “take into account the effect of this excessive liquidity on emerging-market economies,” he said.

The top economic aide to Russian President Dmitry Medvedev said Russia will insist at the G-20 summit that the Fed consult with other countries ahead of major policy decisions.

….German Finance Minister Wolfgang Schäuble lashed out at U.S. pressure on Berlin to rein in the country’s surging exports, telling Der Spiegel magazine, “The American growth model…is stuck in a deep crisis.”

This is just crazy. Exporting countries like China and Germany have relied on the United States as the ultimate consumer nation for years. The whole world has. And everyone knows this is unsustainable. Schäuble calls it a “deep crisis” and he’s right.

But they’re addicted to it every bit as much as we are, which is why they go nuts when we take (extremely modest) measures to weaken the dollar in an effort to get our trade balance just a bit more balanced. So they need to make up their minds. Do they think America can run trade deficits forever? Or do they think we need to get our trade house into some semblance of order? If it’s the latter, do they think we should start doing it now, or should it always be put off until “someday”? What exactly do they want?

Trade deficits can’t last forever. Period. The only question is whether America’s trade deficit goes away slowly and steadily, or if it goes away all at once during some kind of global panic. The rest of the world, to judge by their hysteria over the Fed’s actions, is willing to risk the panic as long as it happens sometime in the future and mostly affects us. I’m not.

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. It's our first time asking for an outpouring of support since screams of FAKE NEWS and so much of what Trump stood for made everything we do so visceral. Like most newsrooms, we face incredibly hard budget realities, and it's unnerving needing to raise big money when traffic is down.

So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate