CharlesLiu wrote:
> On Mar 16, 2:21 pm, Dan Bloomquist <publi...@[EMAIL PROTECTED]
> wrote:
>> Monetary deflation is the shrinking of the money supply. Usually
>> accompanied by asset, (housing and stocks), deflation. Which had been
>> created by excessive debt, (especially non performing). The levels of
>> which are greater now than the 30s. (Total debt to gdp.)
>>
>> Commodity inflation affects the cost of living. A difficult thing to
>> deal with as credit markets tighten.
>>
>> Watching the Fed deal with it, priceless...
>
> Instead of looking at our deficit, our policy makers have choosen to
> blame China. Why do you think we are sending people to Indian borders
> to indicte Tibetan unrest, giving money to Falun Gong to promote anti-
> Chinese hysteria domestically?
We have a stick in just about every nation with unrest. But I've said
before that 'they' see China as the boggy man. And the the ME is just a
pawn in the game. (They have a resource that both East and West want.)
>
> It's the old ma'sas "beating the slaves" mentality. This way the
> Chinese will not dare stop working themselves to the bones, sell us
> stuff cheap, and turn around buying our worhless T-bill.
It is kind of a mystery to me why China fell so badly for it. But that
they figured they could gain enough economic momentum from their growth
to break free. Trouble is, it is not so simple today as they may have
planned. I don't know, I have not found enough information.
> Think about, if we don't keep them down and in-line, imagine they
> recall the debt...
Two edged sword. To gain clout in dollar holdings, they had to sell
their soul. And if they tried to dump their dollar reserves, why would
their fiat currency buy oil any more than ours? What do they have that
the ME wants?
Henry C. Liu has written much on the subject of China breaking the chains.
http://www.henryckliu.com/
|
