The US federal reserve has decided to pump $600bn dollars into the US economy by buying back government bonds from banks and financial institutions, in the hope that they will loan the money out to businesses.

The fed has already spent$1.7tn trying to pull the US economy out of recession - but unemployment has remained at almost 10 per cent.

While nobody knows whether the process of spending more money will work, it is almost certain to devalue the dollar.

That should help US exporters, but countries from China to Japan, Brazil to South Korea may introduce controls on money flooding into their economies - making their exports more expensive and creating inflation and property bubbles.

And all of this has got investors pouring money into commodities as during times of uncertainty they like to hold gold, copper and oil, which are seen as a better store of wealth than the world's reserve currency - the dollar.

Will the US be able to solve its chronic economic problems by printing more dollars, or will it simply create more problems for the rest of the world?

Joining Inside Story to discuss this are: Peter Schiff, the president of Euro Pacific Capital, a brokerage firm; Max Fraad Wolff, a professor of economics at New School University; and Seijiro Takeshita, the director of Mizuho International PLC.

This episode of Inside Story aired on Friday, November 5, 2010.

Source: Al Jazeera