The Global Systemic Crisis: Quantitative Easing and The Fed’s Tapering will Trigger a “Boomerang Effect”
By Global Europe Anticipation Bulletin (GEAB)
February 19, 2014
The avalanche of liquidity from the Fed’s quantitative easing in 2013, allowed the world before’s tenets to wake up: indebtedness, bubbles, globalization, financialization… But all it took was a slight slowing down in the astronomical amounts injected by the US central bank every month for the rampant crisis, buried under these piles of liquidity, to reassert itself. As anticipated, the method of “resolving” the crisis by accentuating the excesses that caused it is ineffective, causing a crisis squared instead. All the same one can find an actual benefit: time is gained which everyone uses to their best advantage.
Throughout 2014, we will once again witness the global systemic crisis’ “normal” deployment, a phase of major transition between two global organization systems, a historic crisis that goes well beyond an economic-financial crisis, which we begin to see clearly. That’s why alongside the serious dangers to the stock exchanges, banks, real estate and, more generally, the economy, the agenda also includes the expansion of people’s anger and the rejection of current political systems, the worsening of geopolitical tensions and blocs withdrawing back in on themselves.
The timing belt of this renewal of the crisis is primarily driven by tapering (the reduction of the Fed’s QE programme) which, as we know, has immediately led to the tremors in emerging currencies. Beyond the negative impact that that has on the global economy, our team anticipates that these shocks will cause a boomerang effect on the US and finally unleash the chain of events of the Dollar’s massive devaluation, destabilizing everything that remains of the old system of which it’s the cornerstone.
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