HU is on First? China VS the US Currency


President Hu of China will visit the White House again this week.  He is probably sizing up the degree of remodeling that he will do when he moves in!  At this point, both our Fed policy and the fiscal policy of this administration has been so disastrous, President Hu said today that the present US dollar dominated currency system is a “product of the past”.  Hu also is touting turning the Yuan Chinese currency into a global currency.  Hu criticized the Fed Printer-In-Chief Ben Bernanke’s “Quantitative Easing”, aka devaluing our dollar so our creditors and our taxpayers get screwed, as bad fiscal policy for maintaining global financial relations.  Basically for every dollar China holds of our debt, every dollar Bernanke prints makes China’s dollars worth less.  It would be like if you sold something to your brother-in-law for $10.00, then your brother-in-law stole $3.00 from you; did you really get $10.00 or $7.00.  Since he is your wife’s brother, you can’t complain too loud.  Same with China, we owe them so much and buy so much of their stuff, they can’t complain too much.

My fear is that someday the complaining will stop and the rest of the world will walk away from the US Dollar as the basis for international trade.  This will make us dependent not only on our own government’s stupidity when it comes to economic policy, but also the insanity of the rest of the world’s leaders.  Obama spends and Bernanke prints.  The net result of both of these policies combined will be higher fuel prices, (notice anything at your local gas station, like higher prices) and higher food costs (even Wal Mart’s prices are going up steadily for food products), and an inability of the private sector to secure loans at a reasonable rate due to the competition for funds from the federal government.  Double digit inflation and interest rates may soon catch up with double-digit unemployment.  Can anyone say “Jimmy Carter”? 

 Where do people like Bernanke, Paulsen and Geithner come from.  Oh, yea, Wall Street, the Fed, the World Bank and other non private sector jobs.  Ever wonder why Wall Street and the Banks all do well, all of the time?  Maybe it is because Geithner and Bernanke, with Obama’s blessing, loan your money to these institutions at zero interest or just give them money in the form of bailouts.  If you miss a house payment or a credit card payment you can kiss your 780 credit rating goodbye.  When a bank gets a bailout, there is no negative connotation as to the worth of the institution nor any punitive damage to their credit worthiness.  Sound Fair!?

So, if you are President Hu, and you hold 30% or so of the US paper, and you see the three stooges spending, printing and giving away HIS money, would you be happy.  I am not even Hu and I am not happy!

You might want to go to Borders and buy a copy of the Rosetta Stone Chinese learning CDs!

RD Pierini,dwp_uuid=ca6ea7d6-1d94-11e0-a163-00144feab49a.html#axzz1BM4XyP85

Rosetta Stone Learning Chinese:


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