Lack of Confidence in Obama, Printing Money and the Crash of the Dollar. China Wins.

Abstract: The Chinese are, ever more closely, watching us[1] 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. [2] 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[3] 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 16^th 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.[4]

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.[5]

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.”[6]-- 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.””[7]—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.[8] 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.”[9]-- 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.[10] They seem to believe in contorted and twisted nostrums of “Social Success, Peace and Justice”—known now as the California Dream.[11]  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.”[12]-- 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. [13] 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’[14] 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 . [15]

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.[16] Obama is a failure and is surrounded by hand-picked parasites like Backside Barney Frank [17],  or our leprotic caricature of a plastic-faced reincarnation of  Rosa Luxemburg:[18]

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[22]’ and torture.[23] The Republicans are off base on this one. Pelosi is a vieille sorcière vilaine sans talents[24]—she has none of the admirable attributes of Ms. Galore real or imaginary.[25]

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."[26]-- 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. [27] 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