Posted by
rycK on Tuesday, June 09, 2009 11:23:31 AM
Lack of Confidence
in Obama, Printing Money and the Crash of the Dollar. China Wins.
Abstract: The Chinese are, ever
more closely, watching us as they think our Treasury
is surreptitiously printing money and monetizing the debt thus cheating the
Chinese out of the value of their bond holdings. This is a fact. Potential
runaway inflation in the US Dollar injects predictable fears everywhere in the
world. We are spending and printing our
way to financial oblivion just for the opportunity for the Obama administration
and his lackeys to mangle our society with socialism, but our Treasury
secretary goes to China and presents a
vaudeville song-and-dance that is more reminiscent of the raunchy scenes from
Cabaret. We are gong to be financially
responsible they are told. The Chinese are not buying into this phony skit. Our dollar is sinking and our bond rates are
rising and both of these will act in concert to aggravate our ‘recovery’ such
as it might be. Our worthless, lying,
government slugs in Washington act as if they were
trained in finance in some skin shop/drug den or massage parlor in California. Long bond interest rates are soaring and our
treasury is empty. We print money willy-nilly. We cannot stop inflation now. We
are trying to rescue fallen corporations in Detroit whose useful lifetimes
are long past a proper burial and just to save expensive union jobs and their precious
votes. Our currency is now at risk from both inflation and collapse and the
Obama administration just wants to print more money and spend and spend and
spend.
We have
been watching the theatrics of our elfin being
and his pack of hokum-chucking jesters as
he juggles several financial hot potatoes in the steamy atmosphere of Washington politics. But, now he struggles
to spread his contrived cheer, charm and propaganda in China, the world’s most progressive
economy, based, quite interestingly, on 16th century mercantilism and
focused on mostly exports. We are
focused, mostly in churlish response to proper credit practices, on imports. We are broke. They apparently don’t believe his
promises. I don’t. Nobody should.
His most unbelievable intermezzo
went like this:
“In his speech, Geithner renewed pledges that the Obama
administration would cut its huge fiscal deficits and promised "very disciplined" future
spending, possibly including reintroduction of pay-as-you-go budget rules
instead of nonstop borrowing.
He must
think the Chinese bankers are like Hop Sing running wildly around with his
hatchet trying to prepare meals on the Ponderosa ranch and performing every
little task for his several masters like a half-wit lackey. Inflation is now a
political football with sooth-Sayers on our sordid Left trying to play down the
effects until we are hopelessly socialized.
Well, those with expertise in
anything other than blind socialism or the drug world seem to think otherwise:
“Senior Chinese leaders have privately voiced
fear over the soaring
US budget deficit and are increasingly looking to diversify from the
dollar, a Republican congressman said.” [Emphasis is mine in all
quotes.]
"We heard across the board -- in private --
substantial, continuing and rising concern," Representative Mark Kirk said
after a trip to China that included talks with government officials and central
bank chief Zhou Xiaochuan.”--
China airs fears on US debt, dollar: lawmaker.
Here is a sample of what a director-general at the China Banking Regulatory Commission thinks:
““Mr Luo, whose English tends toward the colloquial, added: “We hate you guys. Once you start issuing $1 trillion-$2 trillion
[$1,000bn-$2,000bn] . . .we know the dollar is going to
depreciate, so we hate you guys but there is nothing much we can do.””—wild
rant by Luo Ping, a director-general at the China
Banking Regulatory Commission.
The solution might
be for the Chinese to demand the US issue bonds in yuan so as to keep
their inflation on par with their own currency or other maladies that would
affect our power and influence everywhere. So, if we inflated, say, 10% during
the life of the bond we would have to add 10% to the effective interest rate. If
we inflated 50% well……….. If the bond rates double, then the principal falls in
half. Can the Chinese perform simple arithmetic? Washington is either inept in figgers or they are
lying. I choose the latter after listening to their phony rants for the last
few decades. They are prevaricating parasites who would do anything to get to power such as sandbag our War on Terrorism. They
never stopped howling about that or water boarding. They celebrated our war
loses and hailed Islamo-Fascism as part of the new future.
The Chinese will not let loose of this view:
"It's clear that China would like to diversify from its dollar investments,"
the lawmaker said at the Center for Strategic and International Studies, a Washington think-tank.”-- China airs fears on US debt, dollar:
lawmaker
Apparently,
the Obama Administration wonks and their ACORN-dependent hacks think the
Chinese are as ignorant as the milk sop flunkies that voted this Neo-Marxist
into power. Perhaps they are as uninformed as the cognitively-disnimble
lower-middle-class whites in Iowa that believed in ‘change’ and provided the impetus for
Obama to surge ahead of Hillary. The drooling lefties must think that printing
money and raising taxes to confiscatory levels form the glorious path forward
for the left. Perhaps they should be watching the current events in Europe as the left wings are being
clipped in many parts of what used to be the heart of capitalism. These
pedestrian-level parasites seem to have learned finance in California.
They seem to believe in contorted and twisted nostrums of “Social Success, Peace and Justice”—known now as the California Dream.
California is now hopeless morally, socially
and financially bankrupt so maybe they do need to smoke more dope until the
next incarnation.
Obama’s
wild spending and borrowing are not fulfilling his ‘promises’ to save jobs and
the economy turns worse every month. This effect stems directly from the phony
notion that if the GDP falls that our phony and worthless government must chuck
money into the winds to make up that loss and that we will ‘recover’ soon. We
can, in their distorted view, just spend our way into prosperity. Nobody
believes this in Chin or the more enlightened parts of Europe.
The Euro Zone is being transformed:
“It is not clear why a chunk of the blue-collar working base
has swung almost overnight from Left to Right, but clearly we are
seeing the delayed detonation of two political time-bombs: rising unemployment and the growth of
immigrant enclaves that resist assimilation.”--
Europe swings Right as depression
deepens Posted By: Ambrose Evans-Pritchard at Jun 8,
2009
Does this
sound familiar? Here the rush to give amnesty to millions of illegal aliens
pads the ballot boxes in favor of Obama and his slavering socialists. Can we
also, at the expense of becoming labeled as politically incorrect, inquire if our
resident Afro-Americans are also ‘resisting’ assimilation? The metrics seem to
show that.
Take a look at the high school dropout records, standardized test scores, crime
and welfare stats. This is now a separate government-dependent society where
money has been shoveled into the cities with front loaders so as to preserve
the ‘womb to tomb’
voting preferences of the low class.
Now,
rising interest rates must accompany the toxic spray of worthless dollars as
the festoon the financial landscapes:
“The average long-term
government bond fund is down 18.5 percent
this year, according to Morningstar.
That's worse than any other category of U.S. or foreign stock or
bond fund.”--- Rising interest rates start to
worry investors by Kathleen Pender Tuesday, June 9,
2009.
Let us
all pause for a moment, and for those with more than a few neurons to rub against
their braincases, we must note that IF the interest rate doubles on a bond then the
principal will FALL by 50%. [a $1000 bond is now worth
$500 for those liberals who cannot think for themselves.] Isn’t that a cheery
thought for investors? To this we can add the salient point that Obama has now,
with his sterling influence and intimidation of some simple-minded bankruptcy
judge, just devalued secured bond holding in Chrysler and GM. This maneuver follows the maxim that
bondholders are ‘greedy. We can stare at the factoids and wonder what Obama and
his socialists are thinking as their ‘stimuli’ fail to halt unemployment, as
sorely promised, and interest rates now ominously rise.
Obama is a failure and is
surrounded by hand-picked parasites like Backside Barney Frank , or our leprotic caricature
of a plastic-faced reincarnation of Rosa Luxemburg:
I compared Nancy Pelosi to Spartacus [19][in honor of the Marxist heroine Rosa Luxemburg] the former chair of the Marxist Progressive Caucus[20] or Congress' Red
Army caucus[21] who, incidentally, personally approved the spending of every dime in the last
three budgets. We must blame Bush for the
spending! We must also blame Bush for an ‘illegal war’ and torture. The Republicans are off
base on this one. Pelosi is a vieille
sorcière vilaine sans talents—she
has none of the admirable attributes of Ms. Galore
real or imaginary.
We should have
‘confidence’ in the confidence operators when we read things like this:
“A whiff of this potential
outcome has haunted the market lately, contributing to the jump in Treasury
yields and shaving more than 9% from the dollar's value against a basket of currencies since March 9.
"We're not
inflating assets because of sound economic policy. We're inflating them by
printing money," says David
Joy, chief market strategist at RiverSource Investments in Minneapolis. "To some extent, it's an appropriate response
because the private sector is flat on its back. But it's a dangerous
path."-- Land Mines Pockmark
Road to Recover. By Mark Gongloff. June 8, 2009.
Can we have ‘confidence’ in Obama’s handling, direct from the
White House of the fine details of the Chrysler and GM bankruptcies? Oh, yes,
they can restore Detroit to financial
soundness! Sure. The Supreme Court’s
recent stay clouds the issue of new government powers granted under TARP,
another mistake. Let us also chuck in some
real steep Carbon Cap Taxes to help us along too. Then there is socialized
medicine.
Well, we can see this,
Europe can see this, China and Brazil can see this, the Republicans can see
this and the only people on the planet who cannot seem to be mesmerized by
Obama and his Neo-Marxists. Where do we
get these cretins? How much are these losers in Washington going to cost us?
Our currency is now at
risk and for what? Socialism? I will be anointed Queen of the May before we
practice pay-as-you-go budget rules.
rycK
Comments
to: ryckki@gmail.com