China has some nerve. They walk around like they have Elephant testicles. As evidenced by this:
http://www.ft.com/cms/s/0/85f1fac2-d1dc-11de-a0f0-00144feabdc0.html?nclick_check=1
Do these guys live in the worlds biggest glass house? I mean the NERVE!
They keep their currency artificially depressed so they can export more to us nitwits in this country. Take all of the dollars from said nitwits, recycle them back into our US Treasury Market, all creating a huge housing asset bubble. For this they have room to complain? The only reason Chinese citizens eat is because of said nitwits.
They basically make the point that the USD Carry trade which is indirectly enabled by China continuously buying Treasuries is further enabling the liquidity driven global asset bubble. Are they serious? Am I living in the Bizaro World? Are these not the same Chinese that promote their own fraudulent closed non-transparent stock markets? I really can't tell the difference between Macau and Shanghai Stock Exchanges. They are both liquidity driven casino's. Are these the same Chinese that make up Economic Reports to quell the masses? 8% Growth? Your Joking. For twenty years there has been nearly a 100% correlation between electricity growth and GDP growth in China. Electricity growth stopped growing this year. Food for thought. Are these the same Chinese that have told their banks to lend money for the 100% purpose of those said funds to go into the stock market.
We are way past the point of saying hello when the Chinese are accusing the USA of posing a threat to global economic recovery. Let me channel Archie Bunker for a moment and say if it wasn't for the USA, the whole planet would be in flames. There would be bloody revolution from Milan to Minsk. From Shanghai to Sydney. From Lahore to London.
OK. This could be just some pleasant bargaining before Obama comes to town, but If Obama is reading the FT article his first words must be CHILD PLEASE! Obama should let the Chinese know that what they say is true only to the extent that the nitwits he represents are willing to continue to consume. But how long can said nitwits continue to consume? How long can these global imbalances last?
Maybe China is short the carry trade at the moment? Who knows?
Obama is going to make the case for a reminbi revaluation, would the Chinese reciprocate is another question. Lets be honast the Chinese are also under pressure internally to revalue their currency, but how can they? When their entire economy is a house of cards. How can they put the breaks on a blind out of control train?
http://www.telegraph.co.uk/finance/currency/6569750/China-quashes-talk-of-letting-yuan-strengthen.html
Does it also help that we have US based economists who want the status quo to continue?
http://www.bloomberg.com/apps/news?pid=20601087&sid=aeAEBpXx7FsY&pos=2
Should be just let the Chinese get away with murder foe another 10 years? Would that make Mr. Roach happy?
My fear is that Obama goes out there does nothing comes back and starts talking about deficit reduction because that's what the Chinese want. Wait! That's rumored to be happening already.
http://www.google.com/hostednews/ap/article/ALeqM5g2RBEQAPpNMNour8nrK0y8IEYmeQD9BUP4O01
If this rumor is true, we are definitely going into a double dip recession sometime next year. I just don't understand the entire Obama Economic Plan. I know its somewhere but where? Will someone tell me please? Or should I just ask a random Chinese guy?
Seriously folks. Obama has to find a way to re balance the trade relationship with China. The last 10 years the Chinese have some $2 Trillion in trade surplus with the US. We keep exporting jobs, factories, money, technology, and US Treasuries. All of the good stuff that matters to Americans. The only thing we didn't export was financial engineering. We kept that part.
No comments:
Post a Comment