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China Retaliates Again, Accuses US Of "Out Of Control" Dollar Printing

Tyler Durden's picture


After taking heat from the White House for nearly a year for its currency peg, a fact that in itself will never get China to loosen its regime as it would be perceived as yielding to pressure from D.C., China has once again gone on the offensive, this time via its commerce minister who earlier today said that dollar issuance in the U.S. is "out of control" which in turn is leading to an inflation assault on China. Of course, one simple way to deal with said assault would be to revalue the currency, but why do so if the world's biggest export economy benefits from the stupidity of the Federal Reserve. After all, the Fed's China monetary policy allows the US to continue to export inflation and to provide cheap Chinese goods to America's great unwashed masses of Wal Mart shoppers who enjoy cheap (but increasingly more expensive) products. Plus it is not as if China is not printing trillion in money of its own, however in the form of what the US used to do in the past, and do so in the form of cheap, NINJA credit. All in all, this is just another instance of a pot calling a kettle black, even as nothing ever changes.Well, one thing may change: imminent bubbles in ever more rare earth minerals, and soon, rice and rubber, will soon add to pressure in all other already inflating commodities. How companies will be able to pass through these costs to consumers, nobody seems to have either any idea, or care. Certainly not the Fed, which is very myopically welcoming this price change.

Via Reuters:

 Chen Deming, speaking at a trade fair in southern China, said that exporters had done a good job of preparing themselves for exchange rate changes as well as rising labour costs, but were suddenly confronted with new challenges.

"Because the United States' issuance of dollars is out of control and international commodity prices are continuing to rise, China is being attacked by imported inflation. The uncertainties of this are causing firms big problems," Chen was quoted as saying by the official Xinhua news agency.

 Chinese officials have criticised U.S. monetary policy as being too loose before, but rarely in such explicit language.

At the G20 meeting in South Korea which ended on Saturday, Chinese Finance Minister Xie Xuren said that issuers of major reserve currencies -- code for the United States -- must follow responsible economic policies.

Along with posing an inflationary risk, a weak dollar also places appreciation pressure on China's yuan since its value is so closely tied to the U.S. currency.

And here is all one needs to know:

Despite his concern about the impact of U.S. monetary
policy, Chen gave a positive outlook for Chinese trade next
year. He said export growth would be stable, while imports would
increase strongly.

In other words, status quo preserved.


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Tue, 10/26/2010 - 15:29 | 678406 ZeroPower
ZeroPower's picture

Remove your fucking PEG to them and no problem!

Tue, 10/26/2010 - 15:40 | 678460 Turd Ferguson
Turd Ferguson's picture

(100%, must-watch obligatory)

Tue, 10/26/2010 - 16:01 | 678521 More Critical T...
More Critical Thinking Wanted's picture

Yep, the dollar-yuan peg, a'ka:

"The peg is China's guarantee that chinese workforce will always be cheaper than equivalent US workforce."

I expect the upcoming Republican/Palin administration to enshrine the peg in the US Constitution though, to guarantee the "strong dollar". (which, as we all know, is a good thing - except that it's bad.)

Wed, 10/27/2010 - 03:11 | 679873 AnAnonymous
AnAnonymous's picture

"The peg is China's guarantee that chinese workforce will always be cheaper than equivalent US workforce."



Actually, the risk is nearly the opposite.

The peg is China's effort that chinese workforce might be one day as expensive as the equivalent US workforce. With all the consequences.

Removing the peg will keep China's workforce much cheaper than its US counterpart and likely to grow cheaper in the future.

China is no longer a low cost country. They have moved up the ladder.

Added to that, they are many other choices before the US workforce in the world.

Tue, 10/26/2010 - 16:20 | 678574 SheepDog-One
SheepDog-One's picture

Nah its ALL GOOD man! Screw all the facts about how much we owe to China and can never repay, ever, even if things reversed and were pure total fiscal responsibility from here on out!

We're sitting at all time highs in markets, 80 P/E stocks are being chased higher daily, and the only thing to back it up is a bankrupt FED printing more baseless currency. ALL IS WELL! Jump in take the Nastee plunge we can only go higher from here nothing to worry about at all! We're in crazy Cocaine Crackland now where big hookahs full of Hopim are free for all!

Tue, 10/26/2010 - 15:55 | 678501 midtowng
midtowng's picture

China will eventually have to remove the peg. It's inevitable.

Plus, the only way America can ever revive our manufacturing base is if China removes its peg.

But China is a world unto itself. They are concerned with domestic matters first, last, and in-between.

Tue, 10/26/2010 - 16:00 | 678523 King_of_simpletons
King_of_simpletons's picture

Inflation is calculated differently here and in China. The hedonistic adjustments we perform here make CPI and PPI worthless. When China complains about Inflation they are talking about food price, gasoline, commodities etc... We simply choose to ignore all that and compute the price fluctuation of least commonly used commodity between two time periods and proclaim that there is no inflation all the while making chocolate wrappers and soup cans smaller and smaller.  

Tue, 10/26/2010 - 18:24 | 678921 morph
morph's picture

Yeah right.

You'd need the dollar to weaken 10000% before it'll be cheaper to hire an American. You realise workers who assemble iPhones earn $300 per month if they are lucky? That is only after pressure to give them wacking great pay rises.  It was more like ~$150/month a year ago.

Wed, 10/27/2010 - 02:55 | 679862 Heavy
Heavy's picture

Correct, we're all to be slaves, and to whom i wonder.

Tue, 10/26/2010 - 15:29 | 678407 Jim in MN
Jim in MN's picture

Effective talking point in currency war = priceless

Tue, 10/26/2010 - 15:30 | 678411 LongSoupLine
LongSoupLine's picture

Sun Tzu, bitchez.

Tue, 10/26/2010 - 15:41 | 678464 Herd Redirectio...
Herd Redirection Committee's picture

Basically they just have to convince the people of China that they are 'trying to do something'.  It is the same trick that all politicians use.

We all know China and the US have decided a long time that they are going to do this together (currency devaluation), and now it is just a matter of trying to convince the people that it HASN'T been decided ages ago, and that the Chinese gov't is sensitive to its peoples demands.

If this has to end with China more like America, or America more like China,  I can tell you which one the leaders of BOTH countries decided on!  America, welcome to the 'developing' world!

We are starting a new ongoing series in regards to corruption, political favors and identifying the oligarchy over on PsychoNews, check it out:

Feedback and member contribution is welcome, as always

Tue, 10/26/2010 - 16:17 | 678568 Cheesy Bastard
Cheesy Bastard's picture

Sun Tzu, bitchez

The Art of (currency) War. <; )



Tue, 10/26/2010 - 22:39 | 679517 Jim in MN
Jim in MN's picture


Tue, 10/26/2010 - 15:30 | 678415 What_Me_Worry
What_Me_Worry's picture

These two need to get a room and just f@ck each other already.

Oh wait, they already have.

Tue, 10/26/2010 - 15:33 | 678427 Ragnarok
Ragnarok's picture

Nixon started the foreplay years ago.

Tue, 10/26/2010 - 15:34 | 678434 Joe Davola
Joe Davola's picture

Unfortunately, there seems to be quite a number of us caught up as the meat in that sandwich.

Tue, 10/26/2010 - 15:31 | 678417 TheGreatPonzi
TheGreatPonzi's picture

Why does China continue to buy Tbonds?

Tue, 10/26/2010 - 15:45 | 678478 bb5
bb5's picture

the question is how much longer will they keep buying and what happens when they stop? Can Zimbabwe Ben afford to buy them all?

Tue, 10/26/2010 - 16:07 | 678541 Parth
Parth's picture

Great question. Japan too was once in the same boat. They catipulated and continued buying the bonds as they saw no option. So will the Chinese, I mean we give the Chinese too much credit (pun intended), but they foolishly walked into this crisis (everybody knew the home market would blow-at least the bankers knew the eventual blowup with derivatives etc) and I expect them to be as foolish in the future. About the only thing going for us is the rest of the world is no smarter than the Fed this G-20 notwithstanding. I think Germany is the only country who has the ballz to stand up to America. This will be hilarious as China et al enters "can't live with them can't live without" syndrome with USA.

Wed, 10/27/2010 - 03:02 | 679868 AnAnonymous
AnAnonymous's picture

Why does China continue to buy Tbonds?



Easy to understand. The US has put up an extortion/farming scheme on the world scale. Monopoly is hard to define but the USD is probably the closest thing to a monopoly in present days.

As the US keeps selling the assets(mainly commodities) of others denominated in USD, anyone willing to buy commodities (and the Chinese are not willing to, they are obligated) have to get USD.

And you can get USD from only one pump: the US.

Tue, 10/26/2010 - 15:31 | 678420 DoChenRollingBearing
DoChenRollingBearing's picture

Sell China.

Buy gold.

Tue, 10/26/2010 - 18:08 | 678881 equity_momo
equity_momo's picture

Probably the best non-levered pairs trade for the next 2 years out there.

Wed, 10/27/2010 - 03:13 | 679875 Heavy
Heavy's picture


On a 2yr time line i think silver is better than gold if you can get in it.  I'm still running on the argument that the silver market is more likely see price increases than gold because of industrial demand spikes, supply limitations, and smaller total market value than the gold market (comex/spdr collapse and fort knox audit aside).  I'll point out that silver is much better as a hard currency should the dollar hyper-inflate and that it's more easily divisible into useful denominations/amounts, but that's more for fun than for significance of those factors' impact.  I'm not sure if there are differences in the mines' sales of furture amounts of pm, or how much it matters.

Both gold and silver are going up in value, I thought silver was the better of the two last time i checked.  Any reason to change my mind other than the ease of investing in some form of paper gold (even fully backed and redeamable)?  Cause I'll relinquish you that argument.

Tue, 10/26/2010 - 15:31 | 678421 Oh regional Indian
Oh regional Indian's picture

Wasn't Timmay just over there? He also got them to sing The Yuan will Be Upvalued, didn't he?

Pretty clear whose "jewels" are in whose hands though.



Tue, 10/26/2010 - 15:33 | 678431 johngaltfla
johngaltfla's picture

Uh, ummm, uh, ummm.....

You bitch when we don't print.

You bitch when we do.

You bitch when we send the Turbo Dwarf over there.

You bitch when we don't.

China, are you really my wife under a different name?

Tue, 10/26/2010 - 15:38 | 678454 What_Me_Worry
What_Me_Worry's picture

They talk us into taking on a ton of debt to buy things we don't need.

I think you are on to something.

Tue, 10/26/2010 - 15:55 | 678506 NumberNone
NumberNone's picture

But look how much money we saved buying from their store on's like we were stealing from them! 

Tue, 10/26/2010 - 15:35 | 678439 Dangertime
Dangertime's picture

Once the Chinese revalue the RMB, look for inflation pressure to suddenly appear in the US.


We have exported inflation to the Chinese....but in order for them to export it back to us, they need to revalue.


Checkmate my Chinese friends.

Tue, 10/26/2010 - 15:57 | 678513 midtowng
midtowng's picture

Good point. When, not if, China unpegs their currency, you better not be in cash. You better have plenty of gold, silver, and commodity producer stocks. Plus, you better have a way of getting your wealth out of the country.

Tue, 10/26/2010 - 16:26 | 678587 Dangertime
Dangertime's picture

The neat trick is that we are forcing the Chinese to buy our Dollar OR to print RMB to keep the peg going.


They can have rampant inflation locally and face insurrection by printing to keep the peg, OR they can feed our debt addiction by purchasing US paper to keep the peg, OR they can drop the peg altogether and let the RMB rise in value.


Not many choices China.  They started by buying US paper and then got angry that we wouldn't stop printing it......I wonder how long they will stay with the current choice of printing the RMB as a way to keep the peg.


It's a game of Chicken, but they are on a Bike while the US has a Hum-V.  Sooner or later they will blink.

Tue, 10/26/2010 - 16:45 | 678651 centerline
centerline's picture

Sounds about right to me. It's the collateral damage that sucks though.

Wed, 10/27/2010 - 09:04 | 680183 BigJim
BigJim's picture

I'm still learning about all this stuff, so I'd appreciate some comments on the following:

What's to stop the Chinese inflating their own money supply to keep the peg with the USD, but, rather than buying US Treasuries with the excess, buying commodities, mines, overseas farmland, gold, silver, copper, oil etc instead? Wouldn't that prevent the monetary inflation they're worrying about? And give them a lot of real wealth?

Tue, 10/26/2010 - 16:34 | 678610 maddy10
maddy10's picture

To where????????Mars?!!!!

Wed, 10/27/2010 - 02:58 | 679867 AnAnonymous
AnAnonymous's picture

Actually, that is not that. Currently, one way out of potential social troubles in the West is to manage to get everything cheaper from the outside.

Outsourcing is the result of internal pressures and at start, was expected to benefit from a world tour of misery.

World tour of misery: install a factory in a very low quality general environment.

People work. The day they start to improve their general improvement, like adding running waters, it adds to the cost of hiring people them, workers come with bills asking for a pay rise. At this moment, tell people that you have understood them, that they are not interested in working for you. Say "see you soon when you are ready to work" (meaning gave up the option of having running water) Move the factory to another country. Wash. Rinse. Repeat.

The Chinese have blocked this pattern. They have absorbed a lot of the activity thrown outside the Western world and are no longer a low cost country.

Unpegging will not forcefully lead to inflation in the US as the world tour of misery will be put back on tracks.

Even though the difference might be absorbed by profits and not reported on consumers. Very likely. 

Wed, 10/27/2010 - 06:57 | 679954 Dangertime
Dangertime's picture

It takes time to get those factories moved to lower cost countries.  A couple of years at the least.


In the meantime, releasing the peg will at the same time release the inflation genie from the bottle.  All of those Wal-Mart goods that are so cheap (but getting less cheap even with the peg kept)?  They will go up in price rather quickly.

Wed, 10/27/2010 - 13:27 | 680918 AnAnonymous
AnAnonymous's picture

It takes time to get those factories moved to lower cost countries.  A couple of years at the least.


No. From a forthnight to a month.

This is happening on a frequent basis. And you probably never have noticed a disruption in the supply of the goods you are used to buy.




Tue, 10/26/2010 - 15:35 | 678441 wiskeyrunner
wiskeyrunner's picture

Another day of gains for stocks, looks like the midnight rally crew will be on hand tonight. Stock index futures rise overnight 90% of the time. Buy the close sell the open, make free money.

Tue, 10/26/2010 - 15:35 | 678444 youngandhealthy
youngandhealthy's picture

Xie is right whether you like it or not.

What I don't say is that China is not a manipulator.

Tue, 10/26/2010 - 15:37 | 678449 theXman
theXman's picture

China likes to say that it has the sovereign right to decide the RMB/USD exchange rate, it is no one else' business. By the same token, US also has the sovereign rightto print as much paper money as it wants, it is not China's business to complain. All China needs to do is to let Yuan appreciate and reflect the inflation wave back towards US.

The fact is that the RMB/USD peg has sucked US dry. It is no longer sustainable. It has to be broken off either by China voluntarily or by paper dollar attack launched by the Fed.

Tue, 10/26/2010 - 15:44 | 678477 youngandhealthy
youngandhealthy's picture

Absolutely. US has the right to to whatever they want....however banking is built on trust and that includes the "uber-bank" itself, The FED.

Tue, 10/26/2010 - 15:46 | 678479 tom
tom's picture

Or (who could imagine such a possibility) the US could cut its fiscal deficit.

Tue, 10/26/2010 - 15:47 | 678482 youngandhealthy
youngandhealthy's picture


Tue, 10/26/2010 - 17:35 | 678520 theXman
theXman's picture

Logically, yes. Politically, impossble, since that would require a massive self-imposed austerity program onto the population, a real 1930-style depression. Compared to that, debasing USD appears to be a less harsh alternative for the majority of the population of this country.

Got gold?

Tue, 10/26/2010 - 15:41 | 678461 moofph
moofph's picture

...gee, those g20 commitments couldn't even last a few G-seconds.

Tue, 10/26/2010 - 15:43 | 678473 Dr. No
Dr. No's picture

With so much printing by the FED and due to China's 8:1 peg, China is forced into a technological corner.  They do not have the abicus power to issue digital zeros as fast as the FED and are at a loss on how to inflate fast enough to keep the peg.

Tue, 10/26/2010 - 15:48 | 678485 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Oh man, you guys didn't buy those Rough Rice Inverse Floaters from GS? Bummer.

Tue, 10/26/2010 - 15:49 | 678486 HarryWanger
HarryWanger's picture

Codependency. They need us, we need them. Period.

All the talk is to make them look good and save face in front of the PTB. Like an old married couple bickering. That's all it is.

Tue, 10/26/2010 - 16:05 | 678536 SheepDog-One
SheepDog-One's picture

'Out of control dollar printing'? NAH! Crazy Bennie and his Inkjets havent even gotten WARMED UP yet!

All the kooks are calling for markets rallies hard from DOW 11,200, nevermind thats far above an all time high based on valuations. HAS to go higher from here! All the bulltards say so, so all you 'traders' out there, full retard ON!

Tue, 10/26/2010 - 16:15 | 678562 Parth
Parth's picture



Its not really a codependency, they just have no experience in dealing with such macro-economic issues. The American consumer is their drug and they od'd on the US dollar. Thats a hard habit to break, more than likely they will try to "work" with the US as the Chinese cannot envision a scenarion without US consumers. The US dollar was called "gold" in China- have you tried quitting cigarettes or drugs cold turkey?

Tue, 10/26/2010 - 16:34 | 678613 Caviar Emptor
Caviar Emptor's picture

Markets move fast. China's arrangement with the US is nearing a tipping point. Eurozone is now their #1 export customer.

Tue, 10/26/2010 - 16:48 | 678670 centerline
centerline's picture

It's a big ship.  Turns slow.  Clock it ticking on the available leverage for sure.  But, with the EU shipwrecked as well, this could play out for awhile.  What I wonder about is some sort of collective effort to tank what appears to be the Fed gameplan.  Hard to see those alliances forming though.

Tue, 10/26/2010 - 17:16 | 678766 Edmon Plume
Edmon Plume's picture

Agreed -  a bunch of posers posing.

Tue, 10/26/2010 - 16:11 | 678537 plocequ1
plocequ1's picture


Tue, 10/26/2010 - 16:11 | 678549 Parth
Parth's picture

Don't you love the way the Chinese send signals, messages, save face or whatever. Bottom line is they have been screw$d and they know it. All these messages are toothless until they pull the nuclear option of dumping US holdings very fast. Now tell me -who has the guts in China to dump $2trillion dollars of securities and cash? Wall street wins again!

Tue, 10/26/2010 - 16:24 | 678584 SheepDog-One
SheepDog-One's picture

LOL, buncha Sun Tzu wannabe's in here today. 

Why wouldnt China want to dump US treasuries while they still have some value left, and why does that take 'guts' to do? Seems it merely takes a bit of brains to do. 

Tue, 10/26/2010 - 16:46 | 678655 Parth
Parth's picture

Hi SheepDog,


Ever envision that you might have your head chopped off in a vegetable market? Well thats the fate of some non-performing(not criminal) officials. In fact there was a very strong rumor that their central banker chief "disappeared-ran away" until he "reappeared" recently. We know their $2trillion in US denominated assets are declining in value and will decline faster if China sells fast. I wouldn't hold a penny in US denominated assets, China knows that. So who in China will take the fall for triggering the sell-off? IT will probably decline the value very rapidly as they sell off resulting in 100s of billions in losses. In China that takes guts, in USA you still get a bonus after the mess and treat yourself to a filet mignon and Mouton Rothschild in the Hamptons.

Tue, 10/26/2010 - 17:01 | 678726 Dangertime
Dangertime's picture

If they dump the treasuries, they will in turn have to endure massive inflation locally or allow the rmb to rise instead.


They don't consider either option too pleasant.

Tue, 10/26/2010 - 16:52 | 678694 EscapeKey
EscapeKey's picture

Uh yeah, and when they do, the US Dollar will absolutely crash.

Some victory.

Tue, 10/26/2010 - 16:59 | 678717 Parth
Parth's picture

Hi Escpekey,


The US dollar is toast anyways- why wait - China should unload it fast, I guess thats what Bernake is doing anyways- more QE will scare the savers and force them to spend. Point is who in China will have the ballz to pull the nuclear option -

a) The US dollar is headed to zero

b) The last one with the dollar bill really gets the check?

Judging by how China stumbled into this mess really speaks poorly of their economic team. I almost feel sorry for them they forgot capitilism under Mao and after Deng the few decades of experience was no match for Wall Street.


Tue, 10/26/2010 - 16:14 | 678561 Stuck on Zero
Stuck on Zero's picture

If China embargos rare earths we should embargo food. 

Tue, 10/26/2010 - 16:33 | 678605 wisefool
wisefool's picture

And then they can unload their USD reserves. And then we can nationalize (homerun) our energy industry and trade routes. And then they can break all Intellectual property treaties on GMO/Pesticides/Pharma. And then we can stop shipping them the heavy equipment. And then Japan has to decide which side they are on. And then we can have a "new Beloved Leader" in a small nearby dictatorship (NK) fall down some stairs under suspicious circumstances. Then we all start choosing team members for a pick up game. Comfort women are provided by Korean Air. (those commercials have even better talent than MSM cheer-leading squads)

And when it is on. its on. Global Competitive Thermal Eating War. We fat Americans have much more experience. But lots of those boys in Asia are hungrier.


Tue, 10/26/2010 - 16:39 | 678635 Aristarchan
Aristarchan's picture

Maybe we could get GS to corner the market on all the oxygen over mainland China. Limit is to so many liters per day per person and charge an excessive use penalty above that. 02 could be traded on the big board, securitized and frothed into a Tulip bubble. And, if anybody over there wants to play hard-ball...well, HO HO HO...ever seen a Chinese Smurf?

Tue, 10/26/2010 - 16:45 | 678653 wisefool
wisefool's picture

Didn't we try that with Kyoto, Cap and Trade, Climategate?

Tue, 10/26/2010 - 16:51 | 678677 Aristarchan
Aristarchan's picture

I think so....but carbon is not as sexy as oxygen, and China has quite a bit of that in their air already, and for some reason, don't seem to find it as useful as Oxygen.

Tue, 10/26/2010 - 16:56 | 678704 wisefool
wisefool's picture

Okay you convinced me. I'll call Kramer and tell him to put his beloved "Goldie" on it ASAP.  "They (the Chinese) have no Idea! They Have no Idea! They have no Idea how bad it is going to get for them without O2. They have no Idea!"

Tue, 10/26/2010 - 17:00 | 678719 Aristarchan
Aristarchan's picture

A man after my own heart........while you work on Cramer, I'll get Talib and Dr. Doom to start trashing the idea, and, Voila! we have the description of just about every trading opportunity devised in the last several years.

Tue, 10/26/2010 - 17:11 | 678754 Aristarchan
Aristarchan's picture

If this doesn't work......maybe we can drop some Dimes and get Hugo Chavez to sieze it.

Tue, 10/26/2010 - 17:25 | 678789 wisefool
wisefool's picture

Good Idea. He is close to the rainforests down there. Sting can write the soundtrack.

Tue, 10/26/2010 - 20:08 | 679158 Aristarchan
Aristarchan's picture

Aneglina Jolie and Sean Peen can agonize, Kevin Costner can offer know, we may be missing the largest intellectual capital this country has...our actors and musicians.

Tue, 10/26/2010 - 17:09 | 678749 TeamAmerica
TeamAmerica's picture

You seem to think that China is dependent on us for food.   Think again.

Tue, 10/26/2010 - 17:14 | 678763 Aristarchan
Aristarchan's picture

Aren't the Russians Kinda sorta our allies these days? Maybe we can get them involved here, after all, China depends on them for Caucasian prostitutes.

Wed, 10/27/2010 - 00:40 | 679753 thermroc
thermroc's picture

You think the Russians are your allies? Seriously?


Wed, 10/27/2010 - 07:02 | 679957 Real Estate Geek
Real Estate Geek's picture

Reminds me of the Foreigners Around the World section of a Nat'l Lampoon back in the mid-70s.  From the description of the Chinese, I give you the prescience of PJ O'Rourke:

". . . Only a fool would deal with two-legged insects such as these. Our only hope is that the farsighted leaders of our own land will join with those of at least nominally Caucasian Soviet Russia and that together they will treat us to the welcome spectacle of a thermonuclear obliteration of this yellow menace."


Don't worry, he's an equal-opportunity offender; plenty of non-PC humor for (against?) all:


Tue, 10/26/2010 - 17:47 | 678833 wisefool
wisefool's picture

I don't think they are dependent on us for for their traditional products. But if they want to create their urban "middle" class they need our ag tech and land for the "high protein" diet that we are pitching as the middle class status symbol. KFC, McDs, etc.

Tue, 10/26/2010 - 20:07 | 679154 Aristarchan
Aristarchan's picture

Probably some truth to that, but having spent a lot of time in China, I don't think they really trust the diet proclamations coming from the US. And, they are not a wheat/corn based society per diet. I guess we need to grow more rice. Of course, as the younger people gain more economic and societal control, your statement becomes more true.

Tue, 10/26/2010 - 16:21 | 678578 SheepDog-One
SheepDog-One's picture

Larry, Curly and Moe taking on Sun Tzu's army, LMAO!!

Tue, 10/26/2010 - 16:27 | 678592 Aristarchan
Aristarchan's picture

Guys....the Fed is only printing more money these days because all that high frequency trading is wearing it out.

Tue, 10/26/2010 - 16:31 | 678604 Caviar Emptor
Caviar Emptor's picture

Fed inflation control strategy is slowly crumbling. 

Tue, 10/26/2010 - 16:39 | 678634 NumberNone
NumberNone's picture

China, just shut-up and keep buying our debt.  We will gladly repay you with crisp Trillion dollar bills in 2050.  

Tue, 10/26/2010 - 16:49 | 678669 Waterfallsparkles
Waterfallsparkles's picture

Bernankie trying to buy the Dems the Election with Tax Payer Money.  Talk about Election contributions.

Tue, 10/26/2010 - 17:28 | 678797 azengrcat
azengrcat's picture

Bernake: More paper Scotty!

Xerox Engineer: I'm givin' her all she's got captain!  If I push it any harder the whole thing will blow...


Tue, 10/26/2010 - 18:31 | 678937 Ned Zeppelin
Ned Zeppelin's picture

Whatever is said by a Chinese official about the dollar, QE2, and the strength of the yuan was faxed to Geithner's office and cleared the day before.

Tue, 10/26/2010 - 20:51 | 679254 zaphod
zaphod's picture

Simple, then stop buying and divest yourself of Tbonds.

China wants all the pros of its peg, but refuses to accept the cons and associated risks. They have only themselves to blame.

Tue, 10/26/2010 - 21:07 | 679287 DosZap
DosZap's picture

Yep, they just raised the price of fuel because of Inflation.

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|UGG Oliviya
|UGG Raya
UGG Brookfield Short

Thu, 12/09/2010 - 10:33 | 792228 senthil456
senthil456's picture

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