As a result, the U. S. deficit, which was balanced in 1991, rose to $850 billion in 2006. With the increased trade effects of globilization taking place, the central banks of countries which had a surplus prevented their currencies from appreciating by printing their own currencies and buying thousands of billions of dollars to sustain their competitive advantage. Greenp argues that no real harm believe that no real harm has been done by these trade imbalances, and that rising debt and progress go hand-in-hand. It seems more likely that the rise of the U. S.
Deficit and the paper money creation have generated an economic bubble around the world that is close to imploding. In order to stave off a complete systemic meltdown, the central banks of Europe, the U. S. , and the U. K. have injected billions into the credit markets. The Federal Reserve has been prompted to issue a round of aggressive rate cuts. U. S. lenders have expanded their balance sheets at an unprecedented pace, and the U. S. government is currently rushing through a $150 billion emergency stimulus package in an effort to prevent a world recession. Overall, it seems that Greenp has confused cause with effect.