Obama Warns World Not To Rely On US Consumers Any More
It is now beyond question that not only Bernanke, but now Obama, will do anything and everything they can to accelerate the disembowelment of the US currency (Tiny Tim in the bathroom with nose-hair trimmers) and America's middle class, for the benefit of the 2 or 3 Wall Street banks that have over $10 trillion in roll risk in the next 5 years, and the 5 algos which are still trading the occasional oddlot of SPY here and there, thus creating the perception that America still has a functioning capital market (another one for Tim Geithner's Sesame Street media whirlwind tour).
And speaking of media popularity tours, as part of Obama's (who else) recent trip to Asia, his latest announcement is a stark one: in essence, the world will have to grow on its own, and stop relying on the US consumer. Thus China, Obama makes expressly clear, needs to grow its own middle class. Oh, and if possible, could it please finally appreciate the Renminbi? Cause you see, Bernanke's best friends on Wall Street need a dollar that is about 50% lower from where it is to have any sort of chance at surviving for more than a couple of years (that and a few hundreds billion more in unmarked non-consecutive $100 million bills for when the plebs finally realize they were lied to, robbed and left for dead by the DC-Wall Street oligarchy).
From the WSJ:
"The president will continue to be clear that one of the lessons of the
economic crisis is that growth driven by U.S. consumers is not
sustainable in the 21st century," said Ben Rhodes, a senior official in
the White House National Security Council and Mr. Obama's lead foreign
policy speech writer.
Mr. Obama will press his push to "rebalance" the world's economy,
urging China to adjust its economic policy to spur domestic consumption
as the U.S. encourages less consumption, more savings and more exports.
Mr. Rhodes would not say whether the president would push concrete
policy changes to cement his "rebalancing," such as convincing China to
allow its currency to appreciate on the international currency market.
A more valuable Chinese yuan would give Chinese consumers more buying
power while making Chinese exports more expensive.
Of course, by "rebalance" Mr. Obama means he can't wait to see his face finally grace the brand new $1 million dollar bill. The tradeoff: that little pesky country called Tibet, which the US once upon a time pretended to care for, but now, when there are political and financial favors to be demanded, not so much:
The U.S. president is also downplaying the issue of Tibet, as he tries
to navigate the balance of acknowledging Washington's differences with
Beijing while not upsetting a government critical to floating the
federal budget deficit. He is likely to mention instead his "commitment
to rights and freedoms that we believe all people have," mentioning
Burma but leaving the Tibetan issue open to interpretation.
And no, the world "hypocrite" most certainly is not applicable here. Although the words "Rosetta Stone" most certainly are, as Obama launches on a campaign to allow the US to be seamlessly annexed by the Chinese politburo, a formal decision is expected at the next 5 year Beijing communist party plenary session. It is now time to learn the official language(s) of America's new overlords.