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Now he is facing another challenge to the validity of the policy: as $ 1.8 trillion (1.1 trillion of ￡) already pumped towards the banking system United States Bank during the last two years, will be followed soon another $600bn, is on the run. Far from stimulating the u.s. economy, much of the money is simply find their way into the banks in emerging markets.

U.S. lenders, bounded higher financial reports and other regulations surrounding their behaviour, are redirect the money in banks overseas, where he is currently lent much more freely.

U.S. lenders, bounded higher financial reports and other regulations surrounding their behaviour, are redirect the money in the banks overseas, where he is currently lent much more freely to companies in the fast growing economies of Eastern and southern hemispheres.

Take account of the Bank for International Settlements International (bis) analysis of assets held in foreign banks for the Bank.

These 728bn 56pc rose $ at the end of the third quarter of 2008 to 1.14 trillion at the end in the fourth quarter of this année.Ils are then in 2009 at approximately $950bn before consecutive increases during the first half of this year to nearly $ 1.1 billion.Equivalent data for all banks BIS-report show a steady decline since February 2008.

It is possible that the flow of capital in emerging markets and the United States is depressing the dollar effect thus stimulate exports and stimulate growth in the emerging markets maison.Les Governments may balk at this EQ effect and revenge by pushing the new dollar through the purchase of the assets of the US dollar.

But while potentially acrobats trade EQ effect, it still pushes United States, prices for assets, creating a richesse.Mais effect is pure théorie.Si these economic contortions are intent the Fed, then they are lost on the main street.

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