The Next Financial Crisis?
America is hurtling down the road towards another financial upheaval, according to US economist Allan Meltzer.
He fears that inflation will be re-ignited along with a dollar and debt crisis.
The world is not yet out of the current financial crisis, and already there are fears that America is hurtling down the road towards another one. That's the disturbing scenario posed by US economist Allan Meltzer.
He worries that the current rescue measures taken by the central bank the US Federal Reserve will have unintended consequences. He fears that vast amounts of money sloshing around in US banks, interest rates at almost zero, and oceans of red ink in the US budget, could sow the seeds for rising inflation and ultimately, a dollar and debt crisis.
He wants the Obama administration to launch plans for cutting public spending, even though some economists argue the US still needs more stimulus money from the public purse.
Allan Meltzer has unrivalled knowledge of past crises and central bank policies. He wrote a definitive history of the US Federal Reserve. Professor Meltzer has in the past been a member of the President's Council of Economic Advisers, a consultant to the U.S. Treasury, and to the Board of Governors of the Fed. He explains his concerns that America's fiscal and monetary policies are unsustainable.
Also in the programme, Leah Cooper, managing attorney at the mining giant Rio Tinto explains why some of the company's legal services have been moved to India. And our technology commentator Jeremy Wagstaff muses on the dodgy software that's offered on-line.