Is Race Baiting Now an Official Policy Tool of US Bankers?

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When the momentum of the masses gravitates toward the truth,
those that desire to suppress it have always resorted to smoke and mirrors to
divert the people’s attention away from the truth and to channel their focus
into avenues that waste their energies. But bankers and politicians have just
crossed the line, specifically Tim Geithner. Tim Geithner is now using morally
disgusting tactics of race baiting to draw attention away from Central Banks’ destructive
policies of massive currency devaluation as the cause of people’s grief and
misery in an attempt to misdirect the focus of their anger away from the true
culprit of bankers to the convenient scapegoat of “foreigners”.


US Secretary Treasury Tim Geithner effectively blamed China
for the world’s monetary crisis when he recently stated, of China’s weak yuan
policy (compared to the US dollar) and resistance to appreciating the yuan: “it’s unfair to countries that
were already running more flexible regimes and let their currencies
  Geithner also stated
that China must change its policies of maintaining a trade surplus because with
Americans saving more, other political allies of the US cannot compete in exports because China will not allow its yuan to appreciate more than it already has against a plummeting dollar.


You are 100% wrong Tim. It’s unfair to blame other countries
for the attacks on American people’s wealth instigated by the US Federal
What people fail to understand about currency exchange rates is the
theory of currency relativity. To say that other countries like Japan “let
their currencies appreciate”
is a total distortion of facts. Japan’s yen has
increased a mind-boggling 51% from about 124 yen to the dollar to just 82 yen
to the dollar in three years primarily due to the US Federal Reserve’s
destruction of the US dollar. The Thai baht has massively appreciated nearly
41% from 42 baht to the US dollar to 29.85 baht to the US dollar in just 6
years not because the Thai economy
is booming but because the US dollar has been crashing. To say that countries
have “let their currencies appreciate” is comparable to saying that British
colonists “let Africans ride their ships” to America during the slave

As far as international trade is concerned, the incredible
weakness of the US dollar is a thousand more times more harmful to the global
economy than the strength of the Chinese yuan. Every country in the world holds
US dollars for international trade and every Central Bank in the world holds
large quantities of US dollars in their reserves, not Chinese yuan. Is the
Chinese bank rigging the Chinese yuan to be weak? Have they cut their peg to
the US dollar. Yes and yes. But so what? The Chinese Central Bank was forced to
cut the dollar peg in order not to destroy the yuan.  It wouldn’t be so weak if the US Federal Reserve hadn’t
rigged policy for 98 years in a row and deliberately devalued the US dollar by
96% to 98% during this time. If the US Central Bank ever enacted monetary
policy that was beneficial for Americans instead of just for the private
banking families that own them, then they would strengthen the US dollar and
the Chinese Central Bank would re-establish the dollar peg. So why doesn’t Tim
Geithner really tell the truth?


The Chinese Yuan’s influence over the world economy,
especially when compared to the US dollar’s influence over the world economy,
is miniscule despite the lies Mr. Geithner spews. But Mr. Geithner seeks a
foreign “enemy” to blame because he doesn’t want Americans to understand that
the most dangerous threat to the livelihoods of Americans is homegrown. And
this is completely reprehensible and dangerous because the vast majority of
people in every country in the world fails to properly understand the mechanisms
of the monetary system and thus will channel all their frustrations of their
economic misery into the hatred of foreigners instead of channeling their
energy into a positive and necessary overhaul of our current monetary system.


For Timothy Geithner to whip up hatred against the Chinese
for a weak yuan as the reason for global economic problems and as the reason
for economic problems in America is a truly despicable low, even for him. Yes it's much more convenient to stir up hatred against foreigners, and your smoke and mirrors game conveniently removes the attention away from your own failures, Mr. Geithner, but this blame game in which you have engaged is morally reprehensible. The
monetary policy of the US Federal Reserve is far more harmful to Americans than
the monetary policy of the Bank of China. If the US
Federal Reserve had merely kept the US dollar strong for the last several decades, such an action would be helping
Americans today a thousand more times than calling for China to weaken
the yuan.
  But of course, he is
between a rock and hard place now, because the US Federal Reserve has imposed
artificial monetary policy in the US for so long now and created such massive
distortions in the pricing of all American capital markets that doing so would
cause massive short-term misery to Americans before the healing process could
begin. And doing so would infuriate the nation against bankers. So the solution?
Make up a fake foreign boogieman and blame the foreigner for a problem that has
originated at home.


Mr. Geithner, you can blame the Chinese government for silencing,
imprisoning and even killing Chinese dissidents or rake them over the coals for
their vile treatment of Tibet, and stand on moral high ground, but to blame
them for American economic woes has relegated you to the lowest status of an
official hate monger.


Since a lot of people find visuals much easier to understand
than words, look at the latest monetary base chart, dated September 30, 2010, from
the Federal Reserve of St. Louis below.


Monetary Base as of September 30, 2010


If the US Federal Reserve hadn’t created nearly $1.2
trillion new dollars out of thin air in just the past two years that relegated
the US dollar to the status of Monopoly money among all leading global
economies, we could more constructivley worry about business at home instead of trying to dictate
to other countries how they need to run their monetary policy. Maybe if any American
politicians had the cajones to stand up to the destructive policies of these
bankers, Mr. Geithner wouldn’t need to waste so much energy every single day in
spreading lies to the people but might actually be able to work on finding a
sustainable solution to America’s current economic woes right here inside of
our own borders.


Fellow banker Dominique Strauss-Kahn, head of the
International Monetary Fund, also warned in an interview against countries
using monetary policy as a “weapon”. 
Again this is just an idiotic warning, as every Central Bank in the
Western world has used their monetary policy as a “weapon” to inflict much more
harm against their own people in pillaging their wealth than any foreign
Central Bank.  Strauss-Kahn should
stress that Central Banks in Europe and the Americas should cease attacking and
destroying the wealth of their own citizens first before he starts complaining about
the actions of outside Central Banks as a source of global economic woes.


Politicians, unsurprisingly have entered the race baiting
game as well. Senator Charles Schumer (D) recently declared, “China’s currency
manipulation is like a boot to the throat of our recovery.”
How about the Fed
Reserve’s 98-year currency manipulation being a boot to the throat of the
American economy, Mr. Schumer? At the end of September, the US House of
Representatives passed a bill to raise tariffs on Chinese imports by a vote of
348 to 79. "A 25 percent to 40 percent tilt against us is
said US Representative Sander M. Levin (D). "This bill
says we cannot and will not look the other way. We are going to act."

Charles Schumer and Sander Levin, let me congratulate both of you for having zero understanding of monetary mechanisms. If you
did, you would be investigating the US Federal Reserve as the root of the problem
as to why so many Americans are unemployed and struggling today.


But this race baiting game doesn’t just end with bankers and
politicians. The mainstream media has also joined the race baiting game.  A New York Times editorialist, stated
on September 17th, “It is good to hear Mr. Geithner speaking out. It was also
good to hear Japan this week criticizing China’s currency manipulation. The
Obama administration now needs to persuade more countries to speak up. That may
be the only way to get China to abandon its victim act and its policy that is
doing huge economic damage around the world.”
No, what actually would be good
is for the New York Times to stop spreading misinformation and lies and to not
allow journalists that do so to write for their paper.  There has been no greater damage done
to the global economy than the US Federal Reserve’s consistent and artificial
devaluation of the US dollar for 98 years but yet there has not been one
American banker, not one American politician, and not one American mainstream
journalist that has the balls to tell the truth instead of taking the cowardly
route of blaming foreigners for our problems (with the exception of Ron Paul).


I’m disgusted with our bankers and politicians because not
only is this race baiting game morally foul but it also will undoubtedly
produce more Vincent Chins.  As an
Asian American living in the United States in the 1990’s, I have been harassed
and illegally searched by police multiple times for no reason, witnessed dozens
more friends illegally searched and intimidated by police, and called “chink”
more times than I can remember in states all across America. So when I tell you
that there is a good possibility that the result of Tim Geithner’s race baiting,
if it continues, will be another Vincent Chin, I know what I am talking about. Mr.
Geithner’s racially charged propaganda is the first step to creating the type
of racial animosity that allows a Mussolini or Hitler-type persona to rise to
power. You may think this is a stretch to make this comment, but the
implementation of false beliefs into the psyche of a nation is how tyrants
always rise to power.


So who is Vincent Chin? Vincent Chin was a Chinese American
that was beaten to death by two racist unemployed Detroit auto employees that
sought any Asian-American scapegoat to unleash their vile hatred against Asians
that resulted from Japanese auto manufacturers’ increased US auto market share
during the early 1980s. Before bashing in Vincent Chin’s skull with a baseball
bat, the two murderers yelled at Vincent, 
“It's because of you little motherf**kers that we're out of work.”


There will come a time when Americans, unemployed, hurt, scared,
and miserable, will direct their misguided anger against foreigners instead of
rightfully directing it towards bankers. And who will we have to thank when
another Vincent Chin is beaten to death? Tim Geithner, Dominique Strauss-Kahn,
Charles Schumer, Sander Levin, and the New York Times. Or instead of Vincent
Chin, perhaps the weak-minded that fall victim to Mr. Geithner’s race baiting
games will beat a Russian-American to death when our leaders eventually ramp up
their “blame game” to include foreigners other than just the Chinese. Mark my
word, US government and banker propaganda against Russia is coming soon to a TV
or newspaper near you. Or maybe an Arab-American will be beaten to death when
the media starts running stories about a Middle Eastern country that defects
from the devaluation game as well. After all, the politicians would be able
leverage the built-in hatred from 911 to easily blame select Middle Eastern
countries for our problems as well. 
Instead of pointing the finger at others, Tim Geithner, Dominique
Strauss-Kahn, Charles Schumer, and Sander Levin all need to look in the mirror
when looking for parties to blame. If they did, they would find the true
culprit to blame. As this economic crisis deepens, the rhetoric of these men
will assuredly serve as an impetus behind a surge in hate crimes.


All of these so-called “leaders” are wolves in sheep’s
clothing that have unilaterally failed to attack the true root of this problem
one single time during their tenure. That culprit is the dying US dollar and
the miserable failure known as the US Federal Reserve. I only pray that before
the next Vincent Chin happens, people will see through the smoke and mirrors of
these charlatans and think for themselves.




About the author: JS Kim is the Chief Investment Strategist
for SmartKnowledgeU, an
independent investment research firm dedicated to helping the retail investor
avoid investment fraud and to build wealth at REAL rate of returns given the
massive currency debasement policies of Central Banks today. This article is
dedicated to the memory of Vincent Chin, Amadou Diallo, Yusef Hawkins, Ming Hai
Jim Loo and all other Americans killed as a result of hate crimes. R.I.P.