What? What happened? The United States Federal Reserve announced it would print US$600 million to boost the US economy. This means the US dollar will be worth less than it was before the money is injected. What will the effect be? It is very likely to start a currency war, as nations try to adjust the worth of their currency accordingly. Who? Who is the US Federal Reserve? The Federal Reserve System (The Fed) is the United States' central bank. It can make adjustments to America's finances without anyone's permission. If needs be, the President could override its decision but that is very unlikely. Ben Shalom Bernanke is the chairman of the United States Federal Reserve. Who is against it? It would seem everyone, including American voters who showed their anger over a similar bailout last year to hand Republicans control of the House in a recent poll. The House was controlled by Obama's Democrats. Why? Why print the money? The bank hopes to make the dollar so cheap that it stimulates manufacturers in America to make more goods, in turn creating more jobs. Why is it bad for the rest of the world? Many countries, like Hong Kong, value their currency against the US dollar. So the Hong Kong dollar will drop in value even if the economy is doing well. Savings in Hong Kong dollars will be worth less than they were before. When? When will the US$600 million be available? By June 2011, according to sources. Where? Where will we see the effects of this move? All over the world. If money becomes cheaper, people will no longer want to save. Money will flow into economies like Hong Kong's. This is because people here get more interest on their bank savings than they do in the US. But it means increases in Hong Kong rents and house prices and a widening of the rich-poor gap.