When Ben Bernanke talks, the world stops to listen. Early Friday morning,
the Fed chairman spoke at a European Central Banking Conference in Frankfurt,
where he defended his policy of quantitative easing and accused China and other emerging markets for undervaluing their currencies and causing global imbalances.
Bernanke also called for more fiscal stimulus but for being mindful of the
Bernanke seemed to lay blame for the so-called "currency wars" on
China and other fast-growing emerging economies. "Currency undervaluation by surplus countries is inhibiting needed international adjustment and creating spillover effects that would not exist if exchange rates better reflected market fundamentals."
Someday, the government will realize what citizens already know about budgets and spending.