America's money printing press is about to overload.

US economists warn that the country's money printing presses are running at full capacity to continuously "pump" huge amounts of money into the sluggish US economy.

They worry that the US will not recover as long as USD continues to be printed without any guarantee of safety for the US economy to escape the crisis that has lasted since 2008.

Money and Market newspaper quoted American economic research and analysis expert Mike Larson as saying that Washington has declared war on the USD. He said that the US Federal Reserve (FED) has been too lenient with printing money in the past 10 years. Every time the US economy has problems, the FED prints more money. But each additional USD printed loses part of its value and its purchasing power also decreases, leading to foreign investors continuing to lend less money to the US, even buying US Treasury bonds or using the USD they have.

The US Federal Reserve has been continuously printing new money.
in recent years -Photo: Bloomberg

According to Reuters, in 1999, to prevent the Y2K virus from paralyzing the banking system, the FED decided to print an additional 73 billion USD. After the terrorist attack on the twin towers of the World Trade Center on September 11, 2001, the FED repeated this move by printing an additional 40 billion USD into the currency circulation market.

In less than 10 years, the FED has printed three new rounds of money worth trillions of dollars just to revive the US economy that was falling into recession. In 2008, the financial crisis occurred, Lehman Brothers Bank went bankrupt, the FED did not hesitate to print another 1,600 billion dollars to save the US economy.

“The amount of paper money printed is 22 times the amount printed during the anti-Y2K days and 44 times the amount printed after 9/11,” wrote American economic analyst Larson. A year later (2009), another 1,700 billion USD was added to the first economic stimulus package in the context of the US economy falling into crisis. In November 2010, the FED added a second stimulus package worth 600 billion USD to the economy and there may be a third economic stimulus package in the future.

According to the Wall Street Journal, every time the US prints money, countries around the world worry that the devaluation of the USD will cause their domestic currencies to skyrocket, causing many consequences for economic stability and growth, especially currencies in emerging markets such as India, Brazil, Thailand and South Korea.

Analysts are concerned about the risk of a currency devaluation race to compete in trade when the US has decided to freely print money in recent years. Not all countries agree with the FED's printing of more money. German Finance Minister Wolfgang Schauble once warned that the US printing money is a potential risk of "protectionism".

“Pumping money into the market to revive the economy is a stupid thing to do,” said Mr. Wolfgang Schauble. Every time the US prints more money, it is considered to be applying a policy of quantitative easing, which, according to experts, the US’s goal is to make the USD lose value to be competitive in the export market, an action equivalent to devaluing the existing currency.

Rick Perry, governor of Texas, also recently criticized the FED's money printing. "If Mr. Ben Bernanke continues to print money to keep the US Government from bankruptcy, it means he is a traitor" - Mr. Perry said.

In fact, according to the Wall Street Journal, US inflation spiked in July 2011. The US Department of Labor said the US consumer price index rose 0.5% in July and was up 3.6% from the same month in 2010.

However, under the still-heavy pressure of prices, Bloomberg newspaper commented that the FED may be forced to act quickly to boost economic growth, which, according to experts, does not exclude the FED from letting the US money printing machines continue to operate.

(According to Tuoi Tre)