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G20 and The U.S. Dollar Policy - A Presentation
By Dian L. Chu, Economic Forecasts & Opinions
The Group of 20 ended Friday, Nov. 12, 2010 in South Korea without any meaningful agreement on rising global tensions over trade and currency issues.
Despite President Obama rebuffed charges that America is seeking a weaker exchange rate, the U.S. ultimately failed to persuade other countries to support a U.S. back a U.S. push to make China boost its currency.
This presentation outlines some of my observations about the G20, the U.S. dollar policy and the related investing strategy. A copy is also available at Scribd.
Related Reading:
Currencies: QE2's Done, European Debt Crisis To Take Center Stage
U.S. and China Playing the Currency Kabuki
Dian L. Chu, Nov. 14, 2010
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i could be wrong but John Paulson is calling for a housing boom 2nd half of 2011.....Something will happen between now and then with these mortgages. They have for now stopped foreclosures to give them time to implement something but its one of two things. Everyone gets refied at 0% bringing monthly payments to 1/3 or bankrupt fannie and freddie and everyone pays pennies on the dollar for their house. If they don't come up with something there will probably be a revolution. Bernanke is cramming down short term rates for this and after the event house prices will normalize everywhere...no more housing bubble.
To find out more about the lies and fraud propagated by Washington and the Big Banks, watch the YouTube video Global Economic Collapse 2010 at (http://youtu.be/_FHVy1tpT20).
Find out why there are a potential 17 million foreclosures in the pipeline over the next 5 years waiting to devastate the system!!
Global collapse is upon us.
Anonymous-
20 minutes agoI really hate the fact that you're right. I? wish we were wrong. I really do.
Good vid.
Reality is that both the US and Chinese leadership benefit from the current arrangement of RMB / USD peg, the howling about USD devaluation is just for show
The communist party gets to stay in power despite being a totalitarian system and gets to put massive taxes on the Chinese productive sector. The undervalued RMB leads to massive USD inflows which are sterilized by the PBOC by printing RMB which of course goes to the government which gets to spend and invest it as it pleases. The massive Chinese sovereign wealth funds are basically the mirror image of the massive US money printing and the RMB peg. Depegging would lead to a huge increase in Chinese wealth but why shouldnt the government keep it for itself rather than give it to workers
The US politicians also get to print massive amounts of currency which they can hand out at will and as long as the Chinese are unwilling to revalue no one else will either and the US can continue to consume by exchanging goods for worthless paper
Its a nice system for as long as it lasts, at some point the US will stop printing or the Chinese will revalue
this is a small part of a larger global trend. negative competition has been popular lately.
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I really like the slide presentation format.
It beats wading through paragraphs of text in search of conclusions.
I have to chuckle...
While all this mish-mash is going on, I'm looking to buy some NHL jersies from Chinese companies who are shamelessly knocking off licensed merchandise. I am getting these jersies for a song. The great thing is that the Chinese government will pay all the shipping costs for those sweaters to be shipped to Canada. When they get here, I don't have to pay any taxes.
What a great country that China is....
Nice group of slides and a complete waste of time at the same time. I would ask you for some commentary but it's clear you would not have much to offer. America knows it's problems and will solve them and I can assure you trade protection will be at the center of the solution.
Good for you!
Somehow, politicians at Washington do not invoke such confidence in me. Their problem solver is debase the dollar, regardless dems or GOP.
Slide 4 makes me boil with rage. $2 trillion plus in Fed balance sheet growth via printed money for asset purchases is, by definition, a deliberate attempt to weaken the currency. How can Tim just sit there and lie like that? It is really unreal.
If it makes you feel any better, the other G-20 members certainly knew he was full of sh$t, and told him to f-off.