Jul 27, 2009

U.S Tries to Reassure China- Give Me A Break

"President Barack Obama has rolled out top administration officials to try to reassure China that the US will not let huge budget deficits or runaway inflation jeopardise the value of Chinese investments in the US.Among the officials meeting with Chinese representatives yesterday were Treasury Secretary Timothy Geithner, Federal Reserve Chairman Ben Bernanke, National Economic Council Director Lawrence Summers and Peter Orszag, Obama's budget director.US officials said all the officials stressed to the Chinese that the United States has a plan to bring the deficit down once the economic crisis has been resolved.Officials said Bernanke discussed the Fed’s exit strategy from the current period of extraordinary monetary easing."


You have got to be F-ing kidding me! Barrack Obama of all people, who has not accomplished any enviable task in his entire life, became the 44th president ( well actually 43rd to be precise) . This guy is absolutely pathetic and with people like him making any decisions whatsoever, I can't see how anyone can say they are proud to be an American. I mean this is the man who criticized Bush for large deficits while after less than 1 year into his first term goes on to set the largest deficit in history, making his predecessor look fiscally conservative. What is even worse is that he is trying to swindle the Chinese out of their investments by sending his cronies out there to basically lie about the current dollar debasement and eventually the entire collapse. All he is doing is making America even more Financially, Ethically and Intellectually broke.

As Peter Schiff eloquently stated " Quantative easing IS inflation", and nothing could be closer to the truth. Obama and his cronies have more or less already ensured the complete collapse within the next several years and now they are trying to bring our creditors down with us!. Do these people think they are so special that they will defy the basic laws of supply and demand? Well, I highly doubt it, rather they are just a bunch of crooks and people who crave power which they were to unproductive enough to achieve in the free market.

On one last note, this is the same guy who is allowing the minimum wage to increase while also taxing capital at much higher rates. Does this genious not realize the depression is getting worse and unemployment in rising. What does he not think this won't further increase unemployment? It doesn't take a rocket scientist to realize when businesses are making less money, have their marginal tax rates increase and are legally obligated to pay low skilled workers a higher wage, that this will only exacerbate all these problems?

FRED Graph

Above is total public debt outstanding as of march, which makes this graph much rosier than the current numbers. I can't even count the number of weeks after march in which the treasury had 40,50,100+ Billion dollar auctions. Assuming the Total debt is 12 Trillion and half of that is owned by foreigners, they hold approx 6 Trillion in treasuries. But how can Obama or his thugs say these investments are safe? the USD index was at 130 in 2000 and is now at 78, making for a mere 40% decline. But the majority of this decline occured we started debasing the dollar at an exponential rate! So if the past decade saw the dollar lost 40%, how can the next decade not see the dollar fall another 40,50,60,70,80 or 90%?

Not to mention the most narrow and probably conservative measure of the money supply. Below is the year over year % increase in this measure.

FRED Graph

No comments:

Post a Comment