“The huge deficits in the U.S. are a problem both for them and for the world because it’s actually taking away a lot of resources from credit markets all over the world, which creates problems for others,” he said.
I can’t find the full quote in English, but this guy, the Swedish prime minister and EU chairman to be from July to end of year, basically said that “the US will now suck up all credits in the world and that will increase interest rates, deepening the crisis especially for poor countries”.
QUESTIONS:
How does the Bernanke/Obama plan increase interest rates internationally? Is it because their trillion$ buying spree is believed to be partially financied by borrowing internationally? And if so, wouldn’t increased interest rates help the world (except the US) to save its way out of the bubble?