3/18/2010

The arrogance of power

The American senators wanted to punish China for not revaluing its Yuan. What rubbish! They wanted the Yuan to float so that they can manipulate it to their advantage. And they have roped in the World Bank and the IMF to sing their song. How atrocious can they be? The world's greatest manipulator of currency complaining about China who refused to let its currency to be manipulated as the manipulator. At least the UN, through UNCTAD, could see through the flawed and mischievious American argument and is calling on China not to float its Yuan. The peg on the Yuan has ensured stability in the financial world to facilitate growth by the developing countries. Floating the Yuan will allow the Americans to continue in their mischievious role in money speculation, price confusion and trade distortion which led to the global economic crisis. And there was this article in mypaper by another mad man called James Rickards. He claimed that 'it is the greatest bubble in history with the most massive misallocation of wealth.' And he was pointing his finger at China and Russia. Didn't he realised that the biggest bubble in history has just burst, in America? The greatest bubble had popped and he failed to see it and is blaming everyone for it. The greatest and massive misallocation of wealth is in America, where money were made in the billions, or robbed, by the most unproductive people in the finance industry. They did not produce any goods except pieces of papers which they sold to the world as worthless collaterals. The world shall stand by and watch the greatest failure of the 21st Century. Will it be America or China? And if the guru of liberal economics goes down the drain, the ardent followers and unthinking students will go down together.

9 comments:

Wally Buffet said...

My all time favourite movie "Wall Street" is now followed by a sequel, "Wall Street, Money Never Sleeps" again featuring my favourite character, Gordon "Greed Is Good" Gecko. Now, he teaches his new disciple "criminal investments" The Gordon Geckos of America are a dime a dozen. It's a land of fraudsters and scammers unfairly sullying the good name and image of the honest, down to earth and hardworking farmers from Iowa.

When they succeed in getting the yuan floated, the Gordons will have a brand new toy to play with and suck blood from.

Chua Chin Leng aka redbean said...

When the World Bank and IMF are dragged into the fray, you can imagine what they will do next.

The old adages of thrift, earn $1 spend 90c are frowned upon as folly. Spend and spend and spend, spend the income of tomorrow and those of the grandchildren's future income as well.

The UN must stand up, united and throw some rotten eggs at these two institutions.

Look at the stock exchanges of the world today, the computers are trading against the innocent small investors. And they claim to provide a fair and level playing field. Such dishonesty.

Anonymous said...

Who manipulates the World Bank and the IMF? Not China obviously.

During the Asia Financial Crisis they were the ones shouting and calling for the closure of troubled Asian Banks, but behaved like mice when the big American Banks had the same problem. Who is the biggest manipulator?

As for the UN, well, just think of it as a 'Chinese puppet show'. They need someone behind the screen to manipulate the puppets.

Matilah_Singapura said...

China has been manipulating its currency for years. This is how it has managed to make export goods cheap.

But so what? All the countries of the world have fiat currency systems (i.e. paper money) and they all follow Keynesian/Monetarist policies when it comes to central bank matters.

That includes the USA -- the world's biggest currency manipulator and unfortunately the USD is the de facto RESERVE currency of the world.

The US is spoiling for a fight with China, and the baiting and accusations are not going to stop anytime soon.

In fact, as most countries wind back their spending on defense, the RESEARCH dollars in defense spending by the US is going up. There are alot of very sexy weapons on the drawing board. They intend to fight with China... or someone soon because it is a "great way" to get out of the financial shit.

Going to war has been used by many EMPIRES (including the US) to solve its financial problems.

BTW folks, "human greed" makes for a poor argument. We all are greedy and selfish to some degree -- it is part of our mammalian-primate nature,which is determing mythe function and structure of our brain, endocrine and nervous systems. In short: frontal lobes too small, adrenal glands too big. i.e. kill first, thinking optional.

Chua Chin Leng aka redbean said...

The Americans kill one enemy soldier costing them $100k. The Chinese probably will kill one American boy for 10c.

An American soldier going to war will cost the Americans $200k pa while a Chinese soldier will cost 30k yuan, around $5k pa.

I think the Americans will go bankrupt even faster. But the American weapons industry will make tons of money at the expense of the lives of American boys and American public money.

Anonymous said...

The American Leaders should think of a way to bring some American species to other planets. So, even if this Earth goes the way of dinosaurs, the LEGEND of Noah can still survive in other worlds.

Matilah_Singapura said...

redbean:

I agree. "Money for war" has never been an issue for the US. Since the formation of the United States, they have fought the most wars of any country in modern history. This is something they are really good at.

The reasons for the US going to war are numerous but they all fall behind a few central themes -- American foreign policy.

Gerald Celente on the coming war:
http://www.youtube.com/watch?v=Si3KTMBcnSE

No one wins wars. Everyone loses.

Chua Chin Leng aka redbean said...

Who told you no one wins war? Ask the arms merchants and those they shafted their blood tainted money into their pockets.

Matilah_Singapura said...

Yes, I stand corrected.

I should have said no "society" ever wins wars. Thise who "profit" do so on individual basis.

Thanks for being such an intelligent and observant reader :)