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Paul Craig Roberts is an ex-treasury official and is correct.|
QE is stockpiling of money printing because soon the FED will not be able to continue doing so. Most of QE is being stockpiled on the balance sheets of the commercial banks as unlent reserves. The same is happening in the UK.
This means the FED will no longer have an independent monetary policy and as per Mundell-Fleming the World is then going to move to fixed exchange rates and free flow of capital. Hong Kong currently has her dollar pegged to the USD and therefore has no independent monetary policy. The ECB too means eurozone countries don't control their own monetary policy.
This means monetary policy will be governed, most probably, by gold, which is why the Warshington Agreement redistributed gold to central banks around the World, why Germany demanded her gold back in 1999 and 2013 and why China is imported 2,200 tonnes in 2013. Germany even made a reference to repatriating gold from Paris because they shared the same currency. In other words, because the euro will be backed by gold. Asia has established gold vaults and gold exchanges in Singapore, Shanghai and Hong Kong to manage the peg to gold as it moves to a far higher value, whilst the likes of Max Kiester, Jan Skoyles and Jiminy Rickards try to talk down gold to avoid a massive worldwide gold rush.
The dollar is ALREADY FINISHED as a reserve currency. Not being able to flood the World with worthless paper means dollar hegemony is now over. Tax-dodging Timmy negotiated a 4% limit on trade deficits for the new monetary World order. Guido Mantega mentioned "currency wars" meaning competition for the strongest currency, which the propaganda has spun as a race to debase.
Over 40% of international trade is now conducted in euros. China too, has dumped the dollar for trade with Japan and Auztralia. The USD covers less than a quarter with the renminbi about an eighth. The propaganda, once again, peddled the USD as being the dominant currency, citing only letters of credit, which because they're managed by the banksters is mainly denominated in USD.
The US has over $500bn in currency swaps with the eurozone to manage the exchange rate. China has done the same, but the propaganda rags have peddled this as the internationalisation of the renminbi. Currency swaps have always been used to manage exchange rates.