Trichet disappointed today by not cutting the Euro interest rates more sharply to match the monetization of the US dollar by the Federal Reserve.
The US dollar hegemon is based on relativism. The monetization of a fiat currency does not matter so much if the most reasonable alternatives are also in decline. It will show up as an inflation in the price of real goods, but these can be managed in a financial services regime in the short term.
Do not confuse what the Fed and the Obama Administration are doing now with any sort of long term plan. Their bias is the same as corporate management: getting through the short term and looking as good as is possible in doing it.
Obama would like to shift to a longer term strategy, but this is difficult given the huge momentum of malinvestment that grips our national economy.
“A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. For the traitor appears not a traitor; he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear. The traitor is the plague.” Marcus Tullius Cicero