US is pushing for devaluation of Dollar. It can announce QE 3. It means more dollars will flow in system. Major portion of world’s assets are in dollars. Printing money will fuel inflationary pressure in world assets. IMF has lost control on how much money a country can print. By manipulating currency, a country may think to grow and survive. Current China – US currency war is example of it. With no control in place, world economy is running in danger zone.
Technology is making people jobless. New products are not coming in markets which can radically transform the world. In establish products, technology is reducing human intervention. Subsequently, people are loosing jobs. So, overall population and jobless people are increasing at fast pace. Printing more money will fuel artificial inflation and jobless people will feel additional burden. On other hand, people in job should see sharp rise in wealth.
Another dimension is ASSETS. With population and money increasing, you will see sharp rise in asset valuation as assets are limited. In this scenario, all people may feel that they are getting richer as we all have some assets. However, in relative terms, people with higher assets will grow much faster.
So, if you have a job or have assets, you will grow quickly in this cheap money scenario. However, both populations (job and asset owners) will reduce with time as both are limited. Ultimately, large population will loose in this currency war. They will find tough to survive. This is not just US related phenomena but would impact the entire world.
Another angle in it is globalization. Globalization has boosted idea for few global brands only. With technology and supply chain benefits, global brands will take over local brands. Thumb rule is only 2-3 brands can survive in long run in a product. In long term, it will boost ownership of power to few people only.
We need control to get INCLUSIVE GROWTH in this world. It is only possible with distribution of Jobs and assets properly and controlled manner. It also needs control on rising population.