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Germany Calls Out Geithner's Hypocrisy, Says Money Printing Is FX Intervention
After months of US bitching and moaning about China's so called unfair exchange policies, when it is the US Fed which is the biggest currency manipulator in the world by orders of magnitude, one country finally had the guts to stand up and call out Tim Geithner on his endless bullshit. At the G-20 meeting, per Bloomberg, German
Economic Minister Rainer Bruederle said that the Fed's "push
toward easier monetary policy is the “wrong way” to stimulate
growth and may amount to a manipulation of the dollar. Excessive, permanent money creation in my opinion is an
indirect manipulation of an exchange rate." The fact that China was smart enough to peg its currency to the most rapidly devaluing currency in the world is a different story altogether, and merely confirms that they are leap and bounds more sophisticated in their monetary policy than anyone gives them credit for. If Geithner wants to prevent a relative depreciation of the Yuan versus all other currencies in the world (especially the EUR, against which it continues to be in freefall), the answer is simple: stop bloody printing!
And with Tim Geithner present, could the G20 meeting possibly not end up being a total farce? Of course not:
U.S. Treasury Secretary Timothy F. Geithner dismissed prospects of mounting criticism of the Fed’s approach in his press conference after the G-20 meeting yesterday. When asked whether he expected Germany’s criticisms to gain steam, he replied: “I do not.”
In the future, when asked if he ever had problems with being called an idiot and a moron by virtually everyone, Tim Geithner will have the same reply.
And the stand cup comedy continued.
The Treasury chief declined to comment directly on the Fed’s policy, while also saying that major economies like the U.S. need to make growth a top priority. One of the global imbalances is the disparity between rapidly expanding emerging- market economies and too-slow growth in developed nations, he said.
“We are going to continue to try to strengthen the recovery under way so we can dig out of this as quickly as we can,” Geithner said.
In other words, the Fed will celebrate the recovery "under way" by printing another $1.5 trillion in money.
It has gotten so bad that Germany is now directly siding with Brazil which spat in the face of America and decided to not even show up, demonstrating just what it thinks of Geithner's endless hypocrisy.
Low interest rates and weak recoveries in industrialized economies such as the U.S. have forced investors to flood emerging markets with capital, providing resources for growth yet also threatening to spur inflation, asset bubbles and over- valued exchange rates. Such concerns have prompted economies from South Korea to Brazil to take steps to slow the inflow of speculative cash.
“I’m not a friend of this but I can understand” why Brazil introduced capital controls, Bruederle said.
And just so there is no confusion as to whether Germany's critcisms will gain steam, below is Zero Hedge's projection of what the Fed's balance sheet will soon look like.
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uh, i don't know if you heard but Geithner is for a strong dollar™....He said so......
And the students in China literally laughed at Geithner right at his face when he discussed America's "strong dollar" policy. The Chinese, plus Brazil and Germany, are not as stupid as American sheeple.
American sheeple is just fat, stupid, greedy and lazy. I just saw this:
Hawaii has gone farther than most, allowing a family like Gonzales' to earn up to $59,328 and still get food stamps.
http://www.huffingtonpost.com/2010/10/22/food-stamp-usage-soars-am_n_772287.html
Why are we subsidizing families with that much income.
Hawaii is in a very bad financial situation far worse than many know. Still, what about those on the mainland of USA who are enjoying 99 weeks of UE benefits?
"And I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property -- until their children wake-up homeless on the continent their fathers conquered... The democracy will cease to exist when you take away from those who are willing to work and give to those who would not." -- Thomas Jefferson wrote on May 28, 1816
exactly. and IRONY.....is andrew jackson on a federal reserve note....
Jefferson also.. the $2 bill
Germany surrendered their true leverage when they chose to accept the euro as their currency.
they are just another helpless voice to the financial elitist dictatorship.
and the return from commune living to individual effort was vividly shown in Plymouth, MA, e.g.:
http://freedomkeys.com/thanksgiving.htm
Jefferson's quotes and positions are well understood by all of the smart people in DC. And at Princeton, Columbia, and Hahva'd.
- Ned
That is your opinion. Mine is that at the exclusion of Germany, none of the quoted countries is advanced in the gang mindset which is the US trademark.
US citizens are not stupid. They are perfectly aware of the US not going against China for currency manipulation.
The US does not oppose currency manipulation. It practises it lavishly. The US opposes rivals in currency manipulation. And an article posted on this site shows China to be the least able in this field.
Typical gang mindset: the US gangs up on the weakest rival in order to gain efficiency.
That is not stupidity. But gang behaviour.
And Geithner is right: Germany's 'policy' wont gain steam. Germany is an oddity on world stage as the integration of the Eastern Germanty is still leaving them at counter cycle.
Anyone applying 'German recipe' without being itself at counter-cycle is doomed to fail.
Another typical gang trick: boast about coke dealing being so better than crack dealing, less devasting for society as stuff.
Both Brazil and China have seriously to further their education in the gang mind set instead of laughing off their asses. Because in this department, they are terribly lagging behind.
most brazilians lack basic education as do most chinese. The germans are the only population for which that is not true.
Enough america-bashing; the Chinese bleating about currency manipulation is the pinnacle of hypocrisy.
Their economy only exists in this manner due to western debt. All that they are and have comes from western inputs.
These fucktards are past pathetic. I understand that they are playing with a well worn ball, but WTF? America has been reduced to a state of absurdity. The left so adored claiming that "the rest of the world hates us". I'd much rather be hated than laughed at. Ridicule: A potent weapon indeed and in present times a 'teachable moment' for the global morons leftist who have so catastrophically failed once again.
Bush was a tool but at least he pulled his shift with some dignity. This shit is embarrassing!
"Bush Pulled His Shift With Some Dignity" is the title of my next rock opera...
Bush the Debacler left the largest steaming pile of scat in US history. Obama is clearly not up to the task of rescuing our democracy from the banskters, but I'm not sure anybody in either party has the clankers to fix this cluge...not until both parties decide it is more important to save America than for their party to be in power.
Paraphrasing the new Jim Willie 10-22-10:
"...something has been happening in Europe of importance that involve a Chinese back door to dump USTreasurys
..."After having de-facto bought Greece, the Chinese are now members of the Euro system or Greece is now a member of two currency systems, to be used at will. So China will now use its USTreasury Bonds to buy Euros, which will be used to buy Greek Govt bonds. These bonds will be guaranteed by Germany. This is very clever and no one saw the dual usage of the system, except a few very clever people...
...The Chinese will jump to dump as much USTreasurys as they can before the window closes and is shut by Goldman Sachs, errr the USGovt.
...On the margin, China must find a destination for its new surplus while it dumps some of its bloated US$-based assets.
...Watch for quiet hidden expansion of their new handy European Dollar Swap Window. It explains in part the Euro currency rise, beyond what many analysts expected, including the Jackass.
...The USGovt and USBanking leaders have other USDollar problems. Arab states have launched secret moves with China, Russia, and France to stop using the US currency for oil trading. The demise of the USDollar is clearly an exaggerated claim, but the path toward its long drawn out demise is fast becoming laid out. These nations are planning to move instead to a basket of currencies.
...Meanwhile, oil revenues to OPEC states have been reduced in value by the USDollar devaluation. OPEC members seek a $100 crude oil price in order to counter US$ exchange rate weakness.
...The accusations of a Gold bubble are as ludicrous as they are pathetic. They wish to deflect attention from the approved USTreasury bubble.
...The risk to the USDollar is total and absolute. The USDollar will fall hard, but so will all the major currencies in a round robin of destroyed value. "
yeah, this is lauhable.
China will drive up the EUR and down the USD, while devaluing yuan against especially the EUR through this route.
No currency basket with the yuan in it will last long as the CCP is a WANTON currency manipulator and property thief.
I, for one, WELCOME this trade pissing match between a China that massively protects and subsidizes its export and production and the EU which also massively protects and subsidizes ITS export and production industry.
The Germans want to export to China and the Chinese want to steal German industry and ponzi the yuan against the Euro. Europe will not and has not ever sat idly by while their industries are forced to face real competition.
There's a very good reason why it seems the US is the only overconsumer in the world, because everyone ELSE wants to be a growth producer!
Sooooo stocks up 3% Monday???
You know.....just because.
and the vxx down another 3%, that will make i think 37 days,,,errr i lost track>
Germany, Brazil and China are just getting started. Just wait until their buds show their stones. Geithner is a lying asshole mouthpiece for the Fed-Wall Street money cartel.
It looks like, as expected, any agreements were worthless, given Germany's comments and the following from Japan:
"While several member countries of the G20 hailed the summit in South Korea as a success, Japan immediately broke ranks to declare that, contrary to the spirit of the communique, it would continue to devalue the yen if it saw fit.
Yoshihiko Noda, Japan’s finance minister, said: "A prolonged appreciation in the yen is not good for Japan’s economy. Our stance, that we will take appropriate, bold action if needed, is unchanged.”"
http://www.telegraph.co.uk/finance/economics/8082701/G20-vows-to-avoid-c...
The US attitude is, as always, they can do as they please and the rest of the world should just suck it up. Question is, just how fx sensitive are trade balances? US trade deficits are dominated by oil, cheap crap from China and high end products from Europe. These are fairly inelastic, in my view, but if crude prices start to rise towards $100, this is going to cause a lot of pain and anger. The Fed worries that inflation is too low, but doesn't seem to worry that the method of measuring it is bullshit (no fuel or food and the absurd OER.)
I wonder with the midterms round the corner, the Fed will under deliver on QE2, causing the markets to drop sharply and therefore showing the new crowd in Washington that they need to let the Fed do as it wants, for the sake of the economy. The government can then say, we need to make these decisions because of the damage caused under the previous regime etc etc (which is a time honored method for breaking campaign promises.)
Let's just remember, this is not about employment, or growth, or price stability, this is about the Fed saving the banks. Solvency is measured in nominal terms, but mark-to-fantasy can only continue until the cash runs out. Interest accrued is not the same as interest received and add to the mix the large rise in mortgage put backs and you have a banking system in worse shape than in 2008. 2008 was a crisis of liquidity, which the Fed can always resolve, but 2010/ 2011 is going to be a crisis of solvency, and in the absence of real growth only the right sort of inflation can fix it.
"I wonder with the midterms round the corner, the Fed will under deliver on QE2, causing the markets to drop sharply and therefore showing the new crowd in Washington that they need to let the Fed do as it wants, for the sake of the economy."
I have been thinking the same thing, 'A Man.' The FED can just as easily engineer a market crash (even easier) as manipulate the markets up for the last 18 months. The only humans left in the stock market at this point are mostly retail investors (the whales are still in equities, but the 'right' equities). By collapsing the market say 20% and revisiting the uncertainties of say, '87, congress will be able to pass any legislation it wishes as America panics. A crash would lend a hand to the republicans as well since they are 'seen' as the conservative fiscal party (all nonsense of course, but the propaganda still works until it doesn't).
QE2 is already in the books and another banking meltdown is imminent. This won't be like the first TBTF disaster when Paulson made taxpayers bail out the banks. Now that the likes of PIMCO are suing B of A, it's a dogfight between the big guns and this time, TBTF won't work. It's not taxpayers on the hook this time, it's PIMCO, and since they are 'players,' B of A is already toast. PIMCO wants their money and B of A doesn't have enough for them or all the players coming after them.....Counterparty risk finally rises up out of the muck after 3 years of bullshit to collapse what was a 'perceived' orderly decline.
are you sure? and "which market?
ALONE, Japan is HONEST.
Every single fking one of these nations is complaining about USD weakness when THEY WANT their own currency weak!
Neither Japan nor Germany nor Brazil nor China is going to tolerate ACTUAL market forces being applied to their domestic industrial base NOR their currencies. Russia might as they are a commodity seller. Brazil really ought to as they are fairly autarkic.
Tim Geithner and money bunny Maria Bartiromo on YouTube:
« Geithner lies for 4 minutes straight about US Dollar »
http://www.youtube.com/watch?v=Ng0WnS_j1P4
Bunny? Bride of Frankenstein is more like it.
Maria Toutarama
Timmy says:
"Stop printing money?
No, no, it can't be that simple.
There must be a formula or algorithm somewhere...
...the banks need the liquidity...we must...have...debt...to solve...a debt...crisis...
...must...be...a more...complicated...answer...
...Chinese smarter than me?...
...not...possible...
...does...not...compute...
...Daisy...Daisy..."
Luv it HAL. Milestones
Repeated citations by world finance leaders calling Timmy a moron never get old, do they? Love it Hal. +100
Not bloody likely...
Not bloody likely...
"The billboard reads $2000 gold and $50 silver, dead ahead, just a matter of time. The detour only comes with big bank liquidation and debt restructure of their toxic balance sheets. Aint gonna happen!!" - Jim Willie
Anyone with any projections of what the Nov 3rd printing will do to the dollar. Down yes, but how much?
If the FOMC meeting gives birth to a less-than-expected QE2 (let's say, 500 billion dollars or less), the dollar may actually strengthen, before replunging 6 months later. If it's superior to 500 billion, you may see a 20% drop in the dollar value (and a consequent up in the gold value). It the QE2 is absolutely desperate, such as 1.5 trillion and more, then you could witness the immediate extermination of the US dollar on Forex, and a start of hyperinflation in less than 3 months.
Or (just maybe) they will pull out all the stops:
http://www.youtube.com/watch?v=wcW_Ygs6hm0
So the rest of the world starts to call bullshit on the Fed's actions . . . what happens from here:
1) Fed says fuck you and prints anyway. Currency wars get worse as does the depression.
2) Fed holds off printing for now, dollar strengthens and the market tanks and the depression continues.
Meanwhile we still have:
HFT's continuing to make this market a farce until it implodes on itself.
"Fraudclosure" prolongs the housing pain for several more years.
Insolvent banks continue to hide behind TBTF policies of a corrupt government.
Interest rates at zero as far as the eye can see continuing to cause more and more pain to the average retiree who can't stomach the insane risk everywhere else.
There are reports the French and Chinese have had meetings in regard to some form of replacement for the present world reserve currency. It is rumoured to be based on a basket of inputs: pm's, energy, Russian virgins and other rare items.
I think you get the ROW on one side and the US on the other. Places such as Zimbabwe would likely remain allied to the US as they share certain similarities but other than that I think the world is going to be staring at the greatest cleavage since the height of the cold war.
what's the ratio of gold/silver to Russian virgins?
DCon,
You're pushing the envelope with your handle bub!!
As for the gold/russian virgin ratio, well, the math lesson at the end of the comments should tell you what happens when you divide by zero.
Wee ze French do not appreciate ze reference to ze Russkins for zey are not part of ze deescusshun wes ze Chineses. Aind let me teel you estupide Americaines ze propair exchage raite ess how manee bars of cheese smell soap to zee periodic baths can ze Chineeses maike for our countree.
Pffhhhhhht!
Go away or I shall taunt you a second time!
classic Monty Python
http://www.youtube.com/watch?v=9V7zbWNznbs
US monetary leaders: "We have been charged by God with a sacred Quest"
and the whole world laughs in their faces ...
The the Tea Party is the Black Night.
Of course, the movement they start is the police who come to interrupt the final battle at the end of the movie.
Look , the dollar debauchery is just that , but much like the decline of the Roman Empire , there is no real alternative as a Reserve Currency , so the French and Chinese can really go piss all over each others face , they can not formulate a credible replacement to the dollar.
Its dollars and gold , the military and free money. Everyone else is just pretending.
is there a website for this? you know, for research... for a friend.... ahem.. nevermind....
it would appear "the world is not enough." in short, "they say PhU by doing money printing to show their power, too." So where are we in ZH land in all this? "Better run through the jungle, yeah don't you look back you'll see."
Follow up:
How long before the dollar drop shows up in US input prices and begins to drive cost-push inflation?
How many months after that before the Pitchfork Army marches on Washington?
Pitchfork army?
More like http://www.zerohedge.com/article/bullets-shot-pentagon-high-powered-rifle
Even Chinese university students laugh at Mr. Geithner!
Woopee. American students laugh at premier Wee wee.
Well we all know about the Germans. Didn't their concentration camps persecute the very people who run the shadow government/economy here in the US?
The Germans are biased and cannot be trusted, ask Schindler he'll tell you.
Yes, Tarzan, you apeshit, your right. Go back to your apes!
Actually, Hitler was financed by the same interests who run the US. I think the joo thing had the creation of the zionist entity as its purpose. I can't explain it any other way because it is true that Rothschild financed Rockefeller's little fascist clan here in the US and Rockefeller received weekly reports from Mengele's overseer.
Google Rockefeller and Mengele if you don't believe me. Also see Edwin Black's research on this and on IBM actually databasing the extermination through its EU subsidiaries.
Here's a pic of Prescott Bush (a staunch supporter of eugenics) and "Lord" Rothschild:
http://www.scribd.com/full/38660644?access_key=key-n9sgu6j4k3h8ftj9w8i
Remember, Bush, Rockefeller, Carnegie, Kellogg, they are the ones behind this:
Carrie Buck v. James Hendren Bell, Superintendent of State Colony
for Epileptics and Feeble Minded
Citations 274 U.S. 200 (more)
47 S. Ct. 584; 71 L. Ed. 1000
The ruling was written by Justice Oliver Wendell Holmes, Jr. In
support of his argument that the interest of the states in a "pure"
gene pool outweighed the interest of individuals in their bodily
integrity, he argued: We have seen more than once that the
public welfare may call upon the best citizens for their lives. It
would be strange if it could not call upon those who already sap
the strength of the State for these lesser sacrifices, often not
felt to be such by those concerned, in order to prevent our being
swamped with incompetence. It is better for all the world, if
instead of waiting to execute degenerate offspring for crime, or to
let them starve for their imbecility, society can prevent those who
are manifestly unfit from continuing their kind. The principle that
sustains compulsory vaccination is broad enough to cover cutting
the Fallopian tubes.
Holmes concluded his argument with the infamous phrase "Three
generations of imbeciles are enough".
They've replaced it with the new Jim Crowe, the "war on drugs", among other ethnic cleansing, genocidal schemes:
Population Task Force
Among Bush's most important contributions to the neo-Malthusian cause while
in Congress was his role in the Republican Task Force on Earth Resources
and Population. The task force, which Bush helped found and then chaired,
churned out a steady stream of propaganda claiming that the world was
already seriously overpopulated; that there was a fixed limit to natural
resources and that this limit was rapidly being reached; and that the
environment and natural species were being sacrificed to human progress.
Bush's task force sought to accredit the idea that the human race was being
"down bred," or reduced in genetic qualities by the population growth among
blacks and other non-white and hence allegedly inferior races at a time
when the Anglo-Saxons were hardly able to prevent their numbers from
shrinking.
Comprised of over 20 Republican Congressmen, Bush's Task Force was a kind
of Malthusian vanguard organization which heard testimony from assorted
"race scientists," sponsored legislation and otherwise propagandized the
zero-growth outlook. In its 50-odd hearings during these years, the task
force provided a public forum to nearly every well-known zero-growth
fanatic, from Paul Ehrlich, founder of Zero Population Growth (ZPG), to
race scientist William Shockley, to the key zero-growth advocates infesting
the federal bureaucracy.
Giving a prestigious congressional platform to a discredited racist
charlatan like William Shockley in the year after the assassination of Dr.
Martin Luther King, points up the arrogance of Bush's commitment to
eugenics. Shockley, like his co-thinker Arthur Jensen, had caused a furor
during the 1960s by advancing his thesis, already repeatedly disproven,
that blacks were genetically inferior to whites in cognitive faculties and
intelligence. In the same year in which Bush invited him to appear before
the GOP task force, Shockley had written: "Our nobly intended welfare
programs may be encouraging dysgenics -- retrogressive evolution through
disproportionate reproduction of the genetically disadvantaged.... We fear
that 'fatuous beliefs' in the power of welfare money, unaided by eugenic
foresight, may contribute to a decline of human quality for all segments of
society."
During hearings on the Social Security amendments, Bush and witness
Alan Guttmacher had the following colloquy: Bush: Is there any
[opposition to Planned Parenthood] from any other organizations or
groups, civil rights groups?
Guttmacher: We do have problems. We are in a sensitive area in
regard particularly to the Negro. There are some elements in the
Negro group that feel we are trying to keep down the numbers. We are
very sensitive to this. We have a community relations department
headed by a most capable Negro social worker to try to handle that
part of the problem. This does, of course, cause us a good bit of
concern.
Bush: I appreciate that. For the record, I would like to say I am
1,000 percent in accord with the goals of your organization. I
think perhaps more than any other type of organization you can do
more in the field of poverty and mental health and everything else
than any other group that I can think of. I commend you.
Which is why domestically these are the results of his, and the
other wealthy, fascist interests at the CIA's, "drug war":
http://www.leap.cc/cms/index.php?name=Web_Links&l_op=visit&lid=152
Maybe so, but WHO keeps electing them to high office??
9/11 was an inside joo
we're doomed. we really are. Doomed.
I have to say that I have a lot of respect for China. I think the moves they have made are a lot smarter than our Government. They apparently saw that Bernankie was going to print to oblivion. They stockpiled Gold, Copper, and other precious metals. They protected themselves from Bernankie. They tie their currency to our Dollar so that no matter how much Bernankie prints they stay competitive. What is wrong with that? They are building while materials are inexpensive and accumulating housing at todays dollars. What is wrong with that? If materials go up so will the cost to build housing. So they are locking in their construction costs today. They are buying our Farm Land. It would be a tragedy if in fact that the Chinese own our crop production and ship it all over seas.
I dislike saying it but the Chinese are very smart and have in effect outsmarted our Fed, our Government. They will soon be able to purchase most of American Companies and Real Estate for pennies on the Dollar. Which will give them a foot hold into America. After that maybe some time in the future they will Own America lock stock and barrel and we will be Serfs on our own land, all without one gunshot.
What's wrong with that? They openly show they do not believe in the official propaganda mainly led by capistalist forces on malinvestment and stuff like that.
They openly show that in a near future, a strong scarcity issue might appear.
When propaganda is striving in one direction, propaganda does not like anything that exposes it.
Notice the US acted the same. The subprime crisis was simply an elaborated means of hoarding houses on the US territory while construction materials were still cheap because abundant.
The US demand on housing matters heavily: purchasing your private house is part of the US dream. The US has to deliver on this one. It appears that the demand for houses might come from 10 million household whose work output (revenues) should not enable them to buy a house.
The US stockpiled on houses in order to meet this near to come demand.
Nothing different from the Chinese. So the Chinese appear as rivals to the US effort.
That is what is wrong.
"malinvestment"? what's that? the housing "bubble" was as real as the railroad one back in the 19th century and the other dozen or so "mega bubbles" we've had since. We in the USA have an enormous supply of houses that sit vacant on the market. there's no solution? ridiculous. the bad news? "the government's involved." the good news? "the government's involved."
I have to say that I have a lot of respect for China. I think the moves they have made are a lot smarter than our Government.
Yes, they have made some good decisions and the US has made some poor decisions. But the way of the mercantilist is fraught with peril once your "victim" realizes he is bankrupt.
While it is possible the US will just give up and hand our country, property, economy and freedom to the Chinese, I do not expect this to happen. Either the Chinese fix this or eventually the dollar will depreciate vs the yuan, trade barriers/capital controls will be erected and a non-shooting war will erupt. Same for Europe, except their history has not been as kind as the US.
How this does not end up with someone getting seriously screwed over, angry and eventually war is beyond me. The world cannot survive the gross imbalances that exist today, so it gets fixed one way or another. TPTB know this, but as always are late to the fix-it party.
War, that is the downside of the mercantilist ....
sschu
Thanks to Julian and his buddies we'll see a big boom in the MIC, so this currency war will blow over in a couple of weeks. The focus will shift from Timmah and Ben towards Gates. http://www.thedailybell.com/1246/Comes-a-Blond-Stranger.html
Where is the smoking gun? Julian Assange is a plant is the premise of the cartoonish conjecture at that site. What's missing is the why. What has he released that serves the interests of the bankster/mic/msm fascist complex?
Opinion are like you know what .... bla bla bla.
Exactly. Claiming that the CIA would release this kind of information is just stupid. They have NOTHING to gain from this. R and D are equally liable, so there is no political benefit. Military culture has full control of the sentiment among civilians in the US (witness no-one spitting on returning soldiers like they did in the 60's--it is rare for them to be called baby-killers as they were back then). People even beleive that they are somehow defending our freedoms, even as the dragging war on "terror" is stripping us of them.
National madness.
there are no soldiers to spit on anymore. happy?
While I do think the printing is absolutely moronic at this point idea, not doing anything about the Chinese peg will only bring us to the square one, China 15 vs US 0.
Why 15? because it's been over 15 years (or more) of the official Chinese policy to take onto the path of the export oriented growth model. And while usually the world trade is not the zero sum game, in this case it seems it is, the US = 0.
How did Captain Obvious get into a G-20 meeting? This is a major security breach.
Bob Pisani was there?
Ben got him in. Wanted someone to unknowingly take the ridicule.
The FED is abusing their money printing ability as the World Currency. The actions they are taking is hurting Countries all around the World. They are Printing Trillions causing Millions to starve thru higher commodity prices. They are throwing Trillions at the Banks so the can pay Billions in Bonuses while the majority of Americans starve, cannot heat their homes and lose their homes to the Banks. Thru higher commodities, food prices and oil the World over.
No wonder the Foreign Government are angry at Geitner, Bernankie and the FED. They are causing a Global Disaster.
1. The majority of Americans are starving? Do you have a good cite for that?
2. If they're losing their homes, then they don't need to heat them. It's one or the other.
3. Do you really believe the things you say?
Waterfall-
"...while the majority of Americans starve,..."
Shoot, that a'int right. Michelle says that the majority of Americans are too fat. And AP and Reuters don't believe you.
http://www.google.com/hostednews/ap/article/ALeqM5jepBy4bCqT6ZkjypIetwlY...
http://www.reuters.com/article/idUSTRE6465E220100507
Besides, with the EBT aka "Auntie Zietuni" cards, all of life's needs are provided: cigarettes, flat-panel TVs, booze, gambling, just cash ...
- Ned
and that's just for starters!
Question for the Author ... if China's currency is tied to the dollar and their rate of inflation is 14% what is the rate of inflation in the U.S.?
Question for the Author.... If China's GDP is 9% and their inflation is 14% ...are they going in reverse?
"all growth is an illusion." there's a lot to that. why do we keep score in baseball? is it because we aren't sure the game is real? does keeping score "make it so"?
Tim G = Puppet
George Soros' New Plan for Globalism and Crony Capitalism 7/12/10
http://nlpc.org/stories/2010/07/09/george-soros-new-plan-globalism-and-crony-capitalism
isn't this the same guy who "blew up the British Pound"? Yeahh, he's for a "new economic order." At least he's made it back to Hungary...where is Hungary anyway?
Why doesn't the Euro/pound/etc. peg themselves to the dollar too? I mean, pick a ratio that works for each country and maintain that ratio...
I think they tried that with Bretton Woods.
Eventually the imbalances kill you...
hmmm. "I pick as number one!" That almost sounds...."capitalistic"?
Herr Bruederle might soon have bigger fish to fry than TurboTimmy:http://notayesmanseconomics.wordpress.com/2010/10/22/problems-mount-again-for-the-public-finances-of-portugal-ireland-spain-and-greece/
Chinese will buy their debts (not sure about Irish one) just like they are buying Greek debt, dumping US$ for Euro to buy them at a discount. And these bonds will be guaranteed by none other than Germany.
LOLZ.
You know what this is? It's the SAME FUCKING mercantilist recycling game that china has done with the USD for decades.
Just buy all the debt you can find, recycle NO surpluses with actual trade, just buy the currency up by funding the deficits and bonds.
China wants to cheapen WRT the Euro now and fuck them in the ass too. China intends to intentionally bankrupt all its potential trading partners...for what??? So they can produce and sell then to WHOM?
We're not going to give our countries over to these Go playing slope morons on account of the paper they own! We're going to do what the British did in the 19th century and that's sail our roundeye navies and go shove opium up their asses again.
You touch upon a very relevant and often forgotten fact : the US is still the only Gorilla in the room. China cannot project any force outwardly other than beggar they neighbour trade policies. All wars start through economic reasons. We are at stage 1 : currency. Stage 2 is trade. Stage 3 will be when the 11 Fleet Carriers get a proper work out and China find out how large Uncle Sams dick is. For all the apparent retardation in the White House and Fed Reserve , there are enough smart cookies in the MIC that know what needs to be done and its the US who hold the Aces , not China.
2 tril in reserves? Grains of sand on a beach....
kinda scary if you think about it. "all war is inevitible." there is the question as Time Magazine related to ZH about "the American Civil War" however. As Barak Obama said upon "discovering the White House" -- "people really are watching what goes on here." They are indeed Mr. President. They are indeed.
I agree, and I see I was junked several times by people who don't GET IT.
Stop fucking hating on yourselves you freakin spineless whiteys. It's not "america's" fault or the fault of the west or the fault of freaking white people.
I don't WANT a war, but the path China has put itself on makes war eventually inevitable. The usury game eventually means one or the other of you has to go.
This bullshit has been played on EMs for a century. Foreign interests RENT Argentina and Colombia to the populace there. This lasts until someone nationalizes it. That shit simply won't fly here. China is not going to use its "dollar reserves" to take physical ownership of the world and turn the US into a toxic waste dump full of slave labor so the doddering CCP can run around fucking young women with their plate glass spectacles on!
This Middle Kingdom racial supremacy shit will only lead to a fight. Even more than that I'm repulsed by the urge by Americans to bash america and whites to bash whites. There is no other ethnic group which does this; they ALL practice ethnocentric nepotism, from the Tribe at the top to the "Brown Pride" UFC champion telling the latinos "we did it" after his victory last night. Get your heads out of your asses, all of you, and wake the fuck up.
No, I think you're being junked for being a racist retard that likes to advocate war to solve social/economic problems. Yeah, I think that could be it.
Many years ago I read "The Decline of the West" and consider it one of the more important books I have enjoyed but for the life of me I cannot recall Spengler ever say that the decline and demise of the west was from sheer unadulterated stupidity.
Wrong again!! Milestones
Geithner, Summers, and Bernanke...the Economic Dream Team of the millennium.
tiny tim, jabba the hut, and ben shalom........living the dream.
Its a bluff - POMO is QE2.0
I know, I know, I've said this before. On a lighter note, Timothy and Benjamin.....
how 'bout....Timamin, or Benothy or Timjamin. I prefer Timjamin - sounds like a spice or seasoning, lets vote! TD, can you set up a vote counter thingy?
Given the circumstances and given the fact that QE has not provided the bump in GDP and unemployment reduction, adding more QE to the mix at this point makes no sense... This is the only round that the Fed has in the chamber that can make any difference at the right time and for the right set of circumstances...
Now, my ant brain main not be able to take into account the nuances and subtleties of world finances, that the mega-brains in the Treasury and Fed can, but is there the slightest chance that the whole QE thing is a giant political head fake? Goosing the market up to the highwater mark of '08 and then letting the thing plunge and save the QE bullet until later? Orwellian double speak - Geitner: Strong $... RumplestilBEN: Spinning more and more dollars out of thin air (saying straw would do a disservice to straw).
I've seen analysis, as most of you have that $1.5T of new QE gets us a few basis point bump on GDP, and maybe a little help on unemployment (U6 will still be horrendous), so where's the upside? IF QE fails down the road, what's next? Add to that the fauxclosure crisis and the potential of massive putbacks, then it seems to me that the Fed efforts are misplaced, and that they are solving the wrong problem... If they take the blinders off, and start working to facillitate job growth, revitalizing our manufacturing and forcing fiscal responsibility on the part of Congress then maybe we start getting somewhere...
It seems that the Fed borders on becomming irrelevant if they push QE2 and it fails. Coupled with the corruption and fraud that is inherent in the financial markets, It was a breath of fresh air to hear Chris Whalen's interview over at King World News, http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/10/23_Prem...
The Fed needs to be abolished, corporations need to lose their "personnood", TBTF need to be allowed to fail, The SEC and CFTC need to be cleaned out and the reset button pushed with better regulators, The Justices Dept. needs to get busy, and most incumbents need to be voted out of office...
I almost forgot... PEOPLE NEED TO GO TO JAIL... Not just 1-2 minor players, but a lot of people, big fish and small frye... That will begin to restore faith in the system.
L I Q U I D I T Y T R A P.
DC is a farce not you or me (relatively speaking in my case.) We laugh while the media burns our men and women in uniform. We see countries burn before our eyes (Haiti, Greece, Afghanistan now France.) And the media tells us..."we started to say something." Until they didn't. Follow the media money...there's a reason they don't "report from Hollywood" and it has nothing to do with race, religion, creed or color and EVERYTHING to do with "unequal opportunity." ENSLAVEMENT is their goal. Trust me when I tell you "when they send you message it's because you've been sending one yourself." More often than not "you don't even know you're doing." You know you're free when you didn't even know not when you did.
Strong dollar = we don't plan on outright devaluation or default.
Yo Timmy, there's a word for "growing" a small minority of a population (your bankster co-conspirators) at the expense of the rest: theft. In biology there's a word for it too: cancer. Hopefully, one day an angry ZH reader will find you alone in a hot tub.
Tim, I'll make this reallllllllly easy for you, click HERE: http://maxkeiser.com/2010/10/23/michael-hudson-debt-jubilee-and-debt-parasites/
Then, stay with me, click the "Play" button. Questions?????
Hoser
Hey Tim, you guys gave away all our bullets to China via Wall Mart
Hoser
HELLO!!! did anybody else get a message in their brokerage accounts like this??:
On Saturday, October 23, 2010, from 5:00 p.m. ET until 9:00 p.m. ET, X Investments, LLC will participate in an industry-wide disaster recovery exercise which may result in the brokerage website being unavailable for all or part of the event. Please contact us to place transactions if you are unable to access your account online during this exercise. We apologize for any inconvenience and we thank you for your patience."
anybody? beuler??
Not from TDA.
Hoser
Nothing from Tradeking.
WTF is everyone's problem with this?
The dollar NEEDS TO DEVALUE. The goddamned trade imbalances have made dollar devaluation GROSSLY OVERDUE.
Fuck the ROW; what the fuck does Germany think, that they can have a PERPETUALLY weak currency and have export surpluses FOREVER? JFC, the math does NOT WORK.
If the French and Chinks and the rest go to a basket commodity currency, there will be a TOTAL crash in China, which DEPENDS upon currency devaluation to feed export growth. WTF? Commodity basket currency will FORCE trade balance! And neither China nor Germany nor Brazil WANTS THIS.
They WANT the goddamned US to go into massive debt, they NEED IT for their own stupid export/jobs sectors. They knew all a'goddamned-long that we would NEVER be able to actually REPAY in today's dollars!
These nations NOW acting as if this shit is some sort of a surprise is the most hypocritical and laughable bullshit EVER. Germany and China must be forced at some point to ACCEPT trade balance and the long overdue devaluation of the dollar and the loss of their #1 export markets. Either that or DO NOT COMPLAIN about the debts we rack up.
Don't fucking TAKE our productive capacity, make it your own, then fucking vendor finance in a circle jerk and then expect someone with NO INCOME from which you REFUSE to buy anything ANYWAY to repay you!
This is like china prior to the Opium Wars; they just wanted all the silver in the world and the Emperor REFUSED to allow bilateral trade. It ended in WAR; that's how this shit ends up.
China refuses to buy anything from us, refuses to open its markets, Brazil is massively protective of domestic production to the point of having insane tariffs on ANYTHING imported, how the fuck do THEY EXPECT us to repay if they will not BUY?
They have FINANCED a customer that they themselves BANKRUPTED. We should have cut China loose decades ago, but everyone in this clusterfuck went in with eyes wide open. Listen, honeys, don't GO TO A GANGBANG and then come out crying about how you just got fucked!
The irony of it all is that mercantilist economies are accepting US debt as payment for their trade surplusses...... which is a terrible long term investment (pretty good in the 80s, however :)
It all balances out, but the real question in my mind is what will the banksters do to get paid...... when they own all the real estate, governments, farm land, and (possibly) militaries, is one world system too far off?
Germany the country of fiscal responsibility. Times are a changin'
OT-Pete, love them EdF cooling towers. n'est ce pas? - Ned
I just want to know, can we call out Germany for having their pimp Bill Gross influence policy?
Good grief.....Munich, Germany=Allianz=Pimco=Bill Gross= and next Treasury Secretary?
+1 SPY NOV CALL @ 0
Piss on foreigners. The only reason they're so bitchy is because usa dollar devaluation makes it harder for them to export and thus collect even more clownbux. The criminal usa banking cartel is giving them just what they deserve. It sucks for j6p tho.
The answer is simple he say, stop bloody printing. If we did that a couple of things would have to happen. Cuts in Defense by roughly 50%. Social Security present payments curtailed at least 20%. Medicare curtailed by at least 30%. And a refusal to pay market interest rates on Treasury obligations. Here's your interest rate take it or leave it. If we did all those things then we might, might be able to pay our bills out of current income. With this political leadership and this population what are the chances of even beginning to move in that directon? The main problem in the US is the media disinforation and a truly ignorant population. Very, very stupid people indeed.
Can't do ANY of that now...why? Because over 30 or 40 years we ALLOWED mercantilist nations to take productive jobs.
Without gov't spending, we lack an economy. We need to onshore our production, which means export CONTRACTION for ALL the nations currently complaining about the weak USD.
It's easier for germany to cut spending as they have rather ruthlessly PROTECTED their domestic jobs over the years.
"Tim Geithner on his endless bullshit."
if tim geithner didn't have endless bullshit he would vanish into thin air.
in the era of floating exchange rates no currency should be pegged...doing so creates price warps...the signal necessary to reverse course is muffled....a rising yuan would signal to irresponsible americans that the import party had gone on too long and it was time change direction....
but that hasn't happened....health cannot return to the usa economy or dollar until the privations of irresponsibility come home to roost....so far that hasn't happened.
as much as i bash the usa i have no love at all for the chicoms...however, as as creditors, they have a right to be pissed about our currency debasement.
We have 30 years' worth of right to be pissed about their predatory trade practices.
Yes the USD should have devalued long ago, crushed China's export ponzi, and normalized trade flows BEFORE we lost every fucking manufacturing job or plant. The peg and China's desire to maintain their own bubble is what prevented that, along with acquiescence and active support from leadership here, there, and everywhere.
EVERYONE went into this arrangement with eyes wide open. For the Chinese to cry now is bullshit...fuck them.
They don't give a fuck about the USD *other than* their OWN ability to peg to it and maintain their own growth ponzi. This is why they are currently exploring ways to peg to the Euro via impaired sovereign debt.
Some of you may recall how I suggested China should have acted as a dollar liquidity provider in 2008; it appears they must have read my posts because this is precisely what is going on in Greece. In doing so, they can yuan cheaper against the Euro and work a de facto peg against it. All they need do is buy up all the sovereign debt of BANKRUPT STATES (exactly like the US) such as Portugal, Greece, Spain, etc.
This isn't a real investment; it's an attempt at yuan devaluation against the EUR. It's not a statement of faith or confidence about the dollar, merely a FX intervention in attempt to maintain ponzi export growth.
Whoever asked the question is the idiot here. What exactly did he expect Geithner to say?
According to Bullard, CNBC's go to QE2 pumpaholic, 100 billion upfront and re-evaluations for further purchases as data comes in......come 2011 Bullard is no longer a voting member and neither is uber dove Rosengren, unfortunately we lose Hoenig but gain hawks Fisher, Plosser, and Kocherlakota.
4 voting members change in '11
In '10 there are 3 doves and 1 hawk
In '11 there will be 4 hawks and 1 dove (evans)
If the vote isn't for a set amount over a certain time and decisions to buy more go like Bullard suggest by votes for more bond buys as data comes in then by '11 the case becomes less clear for more QE as more hawks enter
Then you mean you expect on Nov 3, the Fed will give a larger QE2 than the market expects because of the number of doves that can vote now?
I expect them to do what the most vocal fed official says, Bullard:
1. Nothing, GDP comes in bte or inline
2. 100 billion upfront and votes going forward to see if more is done
It's all mind games, remember Larry Summers on the day or two before an unemployment report saying how bad it would be and as turns out it wasn't bad. The Fed likes to voice it's intentions though so this may be the plan as Bullard has said it multiple times as well as the WSJ's JON HILSENRATH .
Is the market going to be happy with 100 now and maybe more later?
Heard that despite of the voting process, Ben Bernanke still has the dominant role on the final decision.
Some say that 500 billion QE2 has already been priced in. If that's a " 100 billion upfront and votes going forward to see if more is done" package, guess the market will tank.
This week PMs has already been beaten down due to China's interest hike and maybe Bullard's remarks. :(
Germany, U.S., U.K.,...who gives a fuck? Just say long the ES December contract and you will ride the Zimbabwe bull to Nirvana. We are in a massive bear market collapse in the purchasing power of FRN's orchestrated by the FR and condoned and endorsed by the PBC and BOE. Long live CNBC and God Bless Kramer!
http://www.aier.org/images/stories/charts_large/ppd_lg.png
Thanks for the post - my sentiment exactly. Money should only represent a claim (or futures contract) on future labor, goods and services. Germany's economy sprang back after Weimar because the rate of money creation was based on utilization of labor and creation of goods and services.... result: full employment without communism, almost instantly. No userers siphoning off capital.
Another internet personality calls this "mathematically perfect economy". Since interest is charged on our circulating money, economic growth must always match the interest rate for a stable price level, else the result is inflation or deflation (which central banksters are now trying to avoid by adding more credit... would work if small businesses weren't strangled by the government). When a CB controls interest rates, this is exactly what they're aiming for - matching money in circulation with available goods, service, and labor. Interest creates the need for a continually growing economy (which explains most economists obsession with growth).
Problem with the gold standard is gold is a fixed quantity and not scalable to real goods and services. The best possible money I can think of is what we currently call "futures contracts" - forward selling your goods and services, using the contract as a medium of exchange. Money is created and destroyed in concert with the goods it represents. Trust is the major issue - would you trust your neighbor to honor his contract? What if you didn't know the bearer? This is where banks came in, to put a seal of integrity on the note, guaranteeing redemption for real goods and services. Trust and integrity is what banks provide - why they exist - adding validity to pieces of paper representing something tangible to be delivered in the future. When trust is compromised, the whole economy is.
Speakng of trust in financial institutions - where are we now?
The writing is already on the wall, the system is going down, again, and a new money system will emerge. We've passed the event horizon.
EVERY system except one has a fundamental and fatal flaw. And that flaw is, put simply: FRAUD. Any system in which there is any form of substitute for real, physical goods is a scam for the purposes of enriching predatory slimeballs for simply printing up the fake substitute at zero cost, and eventually destroying the world economy and enslaving mankind. It matters not (to other posters) whether those predators are jews or not - every scam is evil no matter who runs it.
This is why the "gold standard" is the one and only honest and viable means of exchange. Notice the word "standard" in "gold standard". That word is crucially important. NOT ONE SINGLE advocate of the "gold standard" wants to force you to save your wealth in the form of gold, and not one single advocate of the "gold standard" wants to force you to exchange your golds for gold, or gold for your goods. If you wish to save any other real, physical, valuable good instead of gold, more power to you. If you wish to exchange the eggs you produced for lumber directly (without any intermediary such as gold, silver, etc), more power to you.
The "standard" in "gold standard" is exactly like the "metric system standard" versus the "english system standard" versus other standards of length, mass, charge, etc. You are 100% free to measure in any standard you wish, including any standard you wish to create for yourself.
The "standard" in "gold standard" simply adopts a single convention for purposes of easily determining the value of one real, physical good versus any other real, physical good. It makes the calculation practical.
Thus, the "gold standard" is another name for "honesty" and "ethics" and "liberty". You are not required to do anything whatsoever under a gold standard. You are only provided a way to compute trades/exchanges of other goods. As a practical matter, this makes gold the most convenient form of savings, but you are never, ever required to save gold versus anything else.
The most key fundamental point of the "gold standard" is probably this. The chain of "value" must never be broken between the producer of value (some real, physical good) and the saving or exchange of that value [eventually] for other value (other real, physical goods). The moment (meaning mere nanoseconds today) any substitute for real, physical good is inserted in the chain between production and exchange, the predatory slimeballs will steal our wealth and enslave us. This is not a theory, this is the history of mankind.
ALL other systems are fraud. Only the "gold standard" (which perhaps should be called the "reality standard") is honest, ethical and just.
Agreed - contracts can always be broken. The drawback of any hard currency is scalability. Gold standard does not prevent inflation or deflation because it is not directly tied to economic productivity. Dishonest humans will never have a perfect money system.
really? that's why Germany exterminated Poland, the Czech Republic, France, Norway, nearly Britain and nearly all of Russia? They had problems with their banker? I like where you're going with that by the way....
you ever notice a coincidence of wars around monetary regime frictions?
I mean, just try and get off the petrodollar if you think this usury stuff isn't important. The usurer financial regimes have gone to war every time "sound" money built around real bills was tried.
Once germany opted out of the usury clan hegemony, war was inevitable. I mean, hell, the usury clan financed the overthrow and execution of a King of England, for crying out loud.
.....and it makes today (and for sure tomorrow) very scary.
Scales fallen from your eyes yet, DLG? Do a little homework outside of Houghton Mifflin and the jew movies you've been fed.
Um, only one thing comes to mind.
2 girls (Bernanke and Geithner) 1 cup (US Dollar).
Quote: Excessive, permanent money creation in my opinion is an indirect manipulation of an exchange rate. Reply: "indirect"?
Try "direct", "intentional" and "malicious".
Drop dead, dollar.