PRESS RELEASE

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Panic Demands for New QE Stalk Trans-Atlantic and Japan

Sept. 10, 2015 (EIRNS)—The chief economist of the World Bank, Kaushik Basu, warned on Sept. 9 that the Federal Reserve would cause "panic and turmoil and social disruptions in emerging market economies," if it raises U.S. interest rates next week. He was echoed by former Treasury Secretary Lawrence Summers, economist Paul Krugman, and many others. While suggesting that the Fed may be attacking such nations and Brazil and ASEAN countries, Basu is actually representing the panic in bankrupt Wall Street, London, Frankfurt, and Tokyo markets. With guarded tones, he said,

"The world economy is looking so troubled, that if the U.S. goes in for a very quick move in the middle of this I feel it is going to affect countries quite badly."

An increase in Japan Central Bank director Kuroda’s quantitative easing (QE) program by another 10 trillion yen (about $90 billion) was called for by LDP lawmaker and Premier Abe advisor Kozo Yamamoto, after Japan’s August statistics showed another serious drop in machine orders, exports, and inflation. Japan’s stock market, the most volatile in the world since mid-July, dropped 500 points in minutes after opening. Economist Krugman, regarded as a prominent author of Abe’s QE and "stimulus" programs, was quoted Sept. 9 saying he feared that the entire program had failed.

European Central Bank (ECB) president Mario Draghi strongly implied more QE coming in his press conference last week, and the ECB’s Belgian and French board members have called for it directly.

The Wall Street, London, Frankfurt, and Tokyo stock exchanges have taken on the appearance of so many critical-care patients near death, with their central bank teams of emergency-care physicians hovering over them 24 hours a day.

China, taking the opposite approach, has essentially shut down the Shanghai stock-index futures market, on which virtually all activity has ceased.