Prospective Fed nominee Shelton says global economy in ‘very dangerous situation’ like 1930s
“Monetary policy nowadays is ‘not causing any growth to be stimulated but it is having an effect in currency markets, and we’re in a very dangerous situation,’ Shelton told CNBC’s Rick Santelli during a ‘Squawk on the Street’ interview. ‘It’s not unlike the 1930s when you had beggar-thy-neighbor competitive depreciations.'”
USAGOLD note: The risks are not just to currencies but to financial markets and institutions as well. Shelton goes to say that “it would be nice to be virtuous in a vacuum, but I don’t think we have that luxury.” In other words, the United States, in her view, should act at this juncture to depreciate the dollar – something that must be done through the concerted action of both the Treasury Department and the Federal Reserve.
Repost from 8-2-2019