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Guest Post: We Are All Currency Manipulators Now

Tyler Durden's picture




 

Submitted by John Aziz of Azizonomics

We Are All Currency Manipulators Now

The BBC reports:

The US has decided not to declare China as having manipulated its currency to gain an unfair trade advantage.

But the Treasury did say that China’s currency, the yuan, remains “significantly undervalued” and urged China to make further progress.

 

In its semi-annual report, it said Beijing did not meet the criteria to be called a currency manipulator, which could have sparked US trade sanctions.

 

Critics of China say it keeps the yuan low to keep its exports cheap.

There’s a point that no-one in the establishment will admit.

Every country with a central bank is by definition and without exception a currency manipulator.

Every country that devalues its country to boost exports is a currency manipulator.

Every country that bails out banks is a currency manipulator.

Every central bank purchase of treasury securities, mortgage-backed securities or equities is currency manipulation.

Every central bank that inflates away treasury debt is a currency manipulator.

And that is why America would look clownish and absurd to label China a currency manipulator, when China can throw back the exact same accusation even more forcefully. China holds trillions and trillions of dollar-denominated assets.

 

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Wed, 11/28/2012 - 04:44 | 3016696 kliguy38
kliguy38's picture

I beg your pardon. We are the World's Reserve Currency manipulator. The Grand Poobah of the All Time Greatest Currency Manipulator! When we finally blow there's gonna be shit splattered as far as the eye can see.

Wed, 11/28/2012 - 04:53 | 3016702 Middle_Finger_Market
Middle_Finger_Market's picture
The world is disengaging from the US $ annd soon nobody will care about your demise. 
Wed, 11/28/2012 - 04:58 | 3016704 TruthInSunshine
TruthInSunshine's picture

Oh the naivety  of your statement. As unfair as it may seem (and is), the mythical decoupling from the petro dollar is not only not happening, but the Machine is rolling larger.

Ask a Chinese politi-crat what he fears more, rising inflation or rising unemployment.

Wake me up when China actually does de-peg its (also worthless) fiat from the FRN.

Wed, 11/28/2012 - 05:58 | 3016721 Supernova Born
Supernova Born's picture

I just want to know who has the largest denominated currency actively printed: Australia, New Zealand or Canada?

If they are all $100?

Wed, 11/28/2012 - 06:57 | 3016777 negative rates
negative rates's picture

Ahh yes, Timmy even Lost Leverage with the federal purple back, but those $700 euro bills and swiss G notes are rad fer sure.

Wed, 11/28/2012 - 07:59 | 3016841 GetZeeGold
GetZeeGold's picture

 

 

nobody will care about your demise.

 

It's OK....we'll still have Jamie Foxx....and Twinkies.

Wed, 11/28/2012 - 08:10 | 3016853 urwright
urwright's picture

Inflation, deflation, hyperstagflationnation and who has the most zeros on a bill.

It is all about who makes the stuff you need.

"Free Markets" the moron who put those words together knew nothing of either word. To believe a currency is manipulated is just as fucked up as someone who believes interest rates on currency creation is justified (as if something comes from nothing)..

WHAT IS BEING MANIPULATED IS WHAT YOU ARE WORTH.

Stop being a dumbfukinnaggerslave AND change the conversation to the obvious and stop believing you have any understanding of your worth or smarts as YOU READING THIS are the only thing being manipulated.

You dumbnagger.

http://www.youtube.com/watch?=v80_nrlMsSRU&sns=em

Wed, 11/28/2012 - 08:50 | 3016875 GetZeeGold
GetZeeGold's picture

 

 

It started out OK......then he just sorta lost it.

 

Dude....are you OK or should we send help?

Wed, 11/28/2012 - 08:53 | 3016905 urwright
urwright's picture

the obvious is hard to find when you live where common sense is confusing

please realize it is YOU who has lost my message - not me who you say is lost as i follow a path you seem to refuse to see

Wed, 11/28/2012 - 08:56 | 3016912 GetZeeGold
GetZeeGold's picture

 

 

Dude....keep your eye on the sparrow when the road gets narrow.

 

That.....and don't kill anyone.

Wed, 11/28/2012 - 08:59 | 3016918 urwright
urwright's picture

Oh and dude if you really wanna help send me all your Gold (and Silver) right fukin now

p.o. box 12782

San Diego CA 92102

Wed, 11/28/2012 - 09:02 | 3016921 GetZeeGold
GetZeeGold's picture

 

 

We only ship to physical addresses.......and that's only after payment has cleared. Nice try Amigo.

Wed, 11/28/2012 - 09:14 | 3016940 overmedicatedun...
overmedicatedundersexed's picture

what if there were  only the world dollar..what would a nations fiat be worth? who would print the world dollar why the world FED,,grand dreams those elite have grand dreams. they are all JPM GS MS Dexia UBS city of london are all fighting to get cut in..same model as our FED.

PS timmy has been quoted as saying we are going to stop minting penny and nickle..so it begins

Wed, 11/28/2012 - 09:31 | 3016999 urwright
urwright's picture

begins?

wake up man - this shit is as old as prostitution

it would nice to see folks BEGIN to see how it is THEMSELVES who are being manipulated and not what they Value as being manipulated

too bad sheep are just sheep

Wed, 11/28/2012 - 09:11 | 3016937 urwright
urwright's picture

telling me to not kill people and happy everyones demise is softened by twinkies 

 

and you all need worry about someone who believes Capital can ONLY come from Labor?

 

how come only the guys who give tyler good head get to post crazy rants?

 

is there a pattern? do criminal bankers play like they are retail investors who are disgruntled? should i believe you are real and can stand face to face with a real man?

Wed, 11/28/2012 - 09:16 | 3016947 GetZeeGold
GetZeeGold's picture

 

 

should i believe you are real and can stand face to face with a real man?

 

Send one and I guess we'll find out.

Wed, 11/28/2012 - 09:22 | 3016955 urwright
urwright's picture

nice try friend - i only work when your payment has cleared

credit/30 60 90 days payable is how assholes created this mess in the first place

Wed, 11/28/2012 - 09:27 | 3016976 GetZeeGold
GetZeeGold's picture

 

 

 i only work when your payment has cleared

 

Good news.....you don't have work today.

Wed, 11/28/2012 - 09:35 | 3017029 urwright
urwright's picture

you have OBVIOUSLY no idea how much i wish what you said were true

seems to be you whom has nothing to pay anyone yet you say you have something to offer?

Wed, 11/28/2012 - 06:22 | 3016743 Urban Redneck
Urban Redneck's picture

The CNY-USD peg and the mythical "Petrodollar" are distinct phenomena.

OPEC nations' recycling percentage of the USD traded for petroleum into UST has been declining for many years

The myth of the petrodollar is a result of Triffen Paradox and reserve currency status creating excess demand for USD debt/fiat (alternate sides of the same coin)

Demand for USD is DECLINING as a function of percentage of total global trade settlement, hence the "petrodollar" is dying.

Wed, 11/28/2012 - 08:16 | 3016863 Seer
Seer's picture

The petrodollar isn't a myth.

Yes, this phenomenon IS dying.  It's dying because the US's purchasing power is dropping (energy imports are in decline; who knows which comes first, the chicken or the egg?  This makes the USD weaker, thus others are looking to utilize other means of clearing trades.

Oil is still big.  USD not so.  One only look at the price of crude over the last couple of decades to see this.

Anyway, green arrow for you: you seem to have a decent grasp of the big picture.

Wed, 11/28/2012 - 09:08 | 3016904 Urban Redneck
Urban Redneck's picture

Here's a mental exercise in the underlying dynamics of currency manipulation in a NWO globalist context-

The debate over inflation & deflation is generally conducted within context of the non-existent domestic deleveraging in the USA.

As various paradigms of international bilateral and multilateral trade settlement move avay from dollar denomination and dollar settlement, the demand for both USD and UST is reduced, which in a debt-based-fiat-currency system is deleveraging.

and yet the Ponzi continues to grow-

Cui bono?

As TPTB prop up the USD-denominated status quo by increasing the money supply through the creation of debt/fiat, the debt component of which is parked on Federal Reserve's balance sheet, and the corresponding fiat component is parked in "sterilized" FRB member-bank balance sheet reserves, meanwhile the Imperial Congess-criiters are relatively free to continue their spending orgy.

Captive USD debt/fiat serfs will finance the Rest Of World's decoupling from four decades of USD debt/fiat dependence, via inflation since the cost of absorbing foreign USD deleveraging, much less pursuing an actual domestic deleveraging would bring "unacceptable" economic pain.  

NWO massa says. "ROW, debt serfs, ROW! Time to pay your fair share."

Everyone pays in the end, but those who have diversified away from the USD will pay proportionately less.

Wed, 11/28/2012 - 09:54 | 3017116 earnyermoney
earnyermoney's picture

Thus the "pivot" of Barry toward China. Seems Barry is ready to put a gun to China's head since they refuse to acknowledge BB and Timmay's subtle hints. Deficits do not matter as long as you can coerce people to accept your toilet paper for their valuable goods and services.

Wed, 11/28/2012 - 10:40 | 3017258 Urban Redneck
Urban Redneck's picture

I don't think that's the message they took away from the  “ASEAN: One Community, One Destiny” meeting...

http://english.peopledaily.com.cn/90777/8037572.html

or the more subtle and diplomatic version

http://www.scmp.com/comment/insight-opinion/article/1091355/chinas-forei...

Wed, 11/28/2012 - 06:50 | 3016769 slaughterer
slaughterer's picture

What is this "reserve currency" reserved for anymore?  Just further devaluation?

Wed, 11/28/2012 - 11:27 | 3017434 Downtoolong
Downtoolong's picture

Beijing did not meet the criteria to be called a currency manipulator

Yea, we ought to know. At least we’re still the best a something. Can’t make cars. Can’t conduct scientific or engineering research without importing Chinese and Indian people to do the work.

Cazy; one minute we’re bitching about how the Chinese steal our technology. But, when they refuse to steal and implement our currency manipulation inventions the Treasury Dept. gets pissed at them for that too.

Make up your mind Geithner.

Wed, 11/28/2012 - 04:53 | 3016699 TruthInSunshine
TruthInSunshine's picture

 'Cuz we are livin' in a fiat-backed-by-zed-world

Krugman is happy as a dung beetle rollin' a large turd

I say that we are livin' at 110% of Modern Money Mechanics mass 

And BenBernank is every bankster's favorite piece of ass

Wed, 11/28/2012 - 05:00 | 3016706 Hobbleknee
Hobbleknee's picture

Of course they want China to raise the value of the yuan.  Then they can falsely blame inflation on China.

Wed, 11/28/2012 - 05:06 | 3016708 TruthInSunshine
TruthInSunshine's picture

Yet China steadfastly refuses, choosing to continue to import inflation.

The Jade Spring wouldn't be catalyzed by inflation, but given Chinese demographics and internal migration patterns, rising unemployment.

This is why Bernank & Timmay won't ever get what they claim they wish for, if that's truly what they wish for, in terms of Chinese de-pegging (unless they can provide a pledge to effectively stem the massive revolt China would suffer in the wake of fast rising unemployment-- which they can not and will never be able to do).

Wed, 11/28/2012 - 07:25 | 3016809 Go Tribe
Go Tribe's picture

In a world of deflation, inflation is a precious commodity. The Chinese are adept at importing commodities at just the right prices.

Wed, 11/28/2012 - 10:46 | 3017312 TruthInSunshine
TruthInSunshine's picture

Copper would tell lies, then.

Keep in mind I say nothing (I hope not) out of emotion or some sense of perverted patriotism to any sovereign (that are all owned, lock, stock & barrel, by the Bankster Robber Barons).

I'm just remarking on the facts as they appear to exist on the ground, and China has really very little leverage despite popular wisdom as to how they "own" any other nation (harkening memories of Time Magazine's infamous [in retrospect] cover heralding the arrival of Japan, Inc. at the mountain top, circa-1990ish).

Wed, 11/28/2012 - 15:44 | 3018243 Panafrican Funk...
Panafrican Funktron Robot's picture

Stuff that Japan lacked at that time (and still lack), that China doesn't:

1.  An abundance of natural resources and arable land

2.  A fuckload of working age people

3.  A military

Even as the controls start to loosen, wages rise, growing pains, etc., it's really in a more favorable position to be a player outside the western control sphere.

Wed, 11/28/2012 - 05:10 | 3016716 payment expert
payment expert's picture

I couldn't agree more, and even to strengh this point the ECB and iys affiliate bodies have lso put traces on the Euro leaving the continent, to protect asset flow migration. Moreover if look at online transactions for purchases over the internet you may found outthat many of the sites are registerd under a diffrent legislations which is normal and coversion rates are also normal this adds some 2-4% exchange rate add on for purchases over the Net

Wed, 11/28/2012 - 06:38 | 3016745 Supernova Born
Supernova Born's picture

Manipulate until the crash.

Portugal just approved tax hikes which will equal a full month's salary (all of it) and that is just the INCREASE not the total.

Manipulate and build the weaponry. This shit is going to get real.

Yeah, it is sad and it is stupid, yet it is the way it has always been. It isn't going to change until E.T. or angels show up.

Wed, 11/28/2012 - 06:56 | 3016774 bunnyswanson
bunnyswanson's picture

This isn't a fairy tale.  It is an organized attempt to shift assets (individual and national) into the hands of the men holding the strings.

 

It has been stated over and over again but if the MSM doesn't cover it, it doesn't matter.

 

These ruthless individuals want IT ALL.  THEY WANT ALL OF IT. 

 

THEY WANT IT FOR THEMSELVES.

 

They are unworthy however because thieves and scoundrels are.  And now we have to prevent their plan from unfolding because life would be unfuckingunbearable if these assholes ruled the world.

 

I don't feel like dealing with this shit.  I'm too old, tired and fucking want to enjoy a few years before I die but the politicians are useless weak shortsighted greedy motherfuckers and cunts and so that means we have no choice unless you want your great grandchildren to curse you to hell while you lie 6 foot below the ground they walk on.

Take over the media, get the message to the fucking people and it will be solved assholes...it is as simple as fucking that.

 

http://vigilantcitizen.com/latestnews/the-rothschilds-and-rockefellers-join-forces-in-multi-billion-dollar-deal/

The Rothfuckingchild losers who swindled their fucking way to fucking such extravagance that they now call all the shots.  They are buying ARMIES.  Get off the fucking couch and pay attention.

Wed, 11/28/2012 - 08:53 | 3016906 Pseudo Anonym
Pseudo Anonym's picture

how could you call

The Rothfuckingchild losers who swindled their fucking way...

losers when their family along with their fellow hofjuden are running this side, if not most, of the globe from behind the scenes for the last 350 years or so?  The last time I looked, we are the (envious) losers and they are the undisputed champions.  What is anybody going to do about it?  Like always, which is typical for losers, nothing and nobody.  Let me know your plan or go back to sleep.

Wed, 11/28/2012 - 08:59 | 3016917 Offthebeach
Offthebeach's picture

Relax.
Look, for anyone not glued to the boobtube, the deal is out in plain sight and anyone can play.
Just get a BA in mathematics from MIT, a MBA from Harvard and do some posts postdoctoral at Stanford and you can play.
If you could develop the ability to drag your tongue across Chuck Shummer's balls, or get on your knees and cry about Jesus with GW, that's double plus good.

Wed, 11/28/2012 - 06:30 | 3016751 GoldmanSuckz
GoldmanSuckz's picture

" All the world's a stage,
And all the men and women merely players" play on 

Wed, 11/28/2012 - 06:46 | 3016764 Floodmaster
Floodmaster's picture

Every country with a fractional reserve banking system with a potential to print money through loans is a currency manipulator.

Wed, 11/28/2012 - 07:02 | 3016782 notadouche
notadouche's picture

America didn't need to label China a currency manipulator to look clownish and absurd.  That mission was accomplished long ago and continues down that path in good form.

Wed, 11/28/2012 - 07:27 | 3016812 wisefool
wisefool's picture

What Mitt Romney did with his "career" is the definition of currency manipulation. For him to call china a manipulator is too rich.

Wed, 11/28/2012 - 07:32 | 3016816 notadouche
notadouche's picture

Mitt Romney?  Earth to wisefool:  Romney is not a political figure and was not mentioned in this story.  Why do you invoke his name?  Just curious.

Wed, 11/28/2012 - 09:46 | 3017081 earnyermoney
earnyermoney's picture

he/she is a Barrybot

Wed, 11/28/2012 - 07:29 | 3016813 youngman
youngman's picture

Oh.....nevermind....LOL

Wed, 11/28/2012 - 07:34 | 3016818 Radical Marijuana
Radical Marijuana's picture

Yes!

No doubts!

Everyone is being more forced to accept more frauds.

It is not possible to live anywhere outside of the LIES.

Wed, 11/28/2012 - 07:47 | 3016831 Racer
Racer's picture

And the Botoxed ChairSatan is the worst of them all

Wed, 11/28/2012 - 07:49 | 3016833 LongSoupLine
LongSoupLine's picture

Henceforth and in conclusion...

Silver bitchez.

Wed, 11/28/2012 - 07:56 | 3016840 williambanzai7
williambanzai7's picture

THE DEBT RIDDEN CITY

Wed, 11/28/2012 - 09:28 | 3016953 tocointhephrase
tocointhephrase's picture

Fuck you Bernanke!

 

Edit: Wen Jal Ben???

Wed, 11/28/2012 - 08:13 | 3016859 GetZeeGold
GetZeeGold's picture

 

 

Come around tomorrow......we'll take you again.

 

Wed, 11/28/2012 - 08:19 | 3016868 three chord sloth
three chord sloth's picture

Mr. Aziz forgot an important point about currency manipulation: Currency manipulation destroys the automatic rebalancing mechanisms at the heart of the theories of "free trade". As long as central banks can put their thumbs on the scales, building the world's trade system around the concept of "free trade" will remain as it is -- toxic to broad swaths of the world.

Wed, 11/28/2012 - 09:45 | 3017077 ATM
ATM's picture

Exactly, which is why international trade should be settled in gold.That is real free trade in non-manipulated terms.

Wed, 11/28/2012 - 09:14 | 3016942 The Shootist
The Shootist's picture

Here, here.

Wed, 11/28/2012 - 11:47 | 3017478 WhiteNight123129
WhiteNight123129's picture

WHen the head of FDIC says pricing is abnormal on Treasuries, what do you do ? Buy Tobacco shares Gold and short treasuries... Sit and wait.... It likes a chemical reaction it get can cold first (and your P&L hurst first) before it explodes, like a can of Soda.

FDIC chief says she would pay politicians with Government bonds. Would you have heard a man FDIC chief saying that? I am not a feminist but I see all those guys with a big mouth and a small dick and this small lady is putting them to shame.

http://www.reuters.com/video/2012/11/22/reuters-tv-quantitative-easing-a...

 

Wed, 11/28/2012 - 13:45 | 3017865 compound interest
compound interest's picture

Every country, where printing money is a monopoly of the state (or a CB which has been authorised by the state and the rule of law), is a currency manipulator.

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