Here is the Bernanke's financial war on China and developing countries.
The insidious purpose of QE2 can be deduced from the following observations.
(1) The national debt is impossible to pay off, not only debt to
foreign sovereign countries, but also the larger, internal debt to US
citizens through social programs such as Medicare and Social
Security. The interest rate must be low, and preferrably zero;
otherwise, the US government will default "immediately." QE2 helps the
US government to avoid immediate bankruptcy.
(2) Too-big-to-fail banks are still struggling. With low domestic
interest rates and people refinanced their mortgages to lower interest
rates, banks earn less. Higher interest rates can cause more home
owners to default. Hence, the second bank stress test at 11%
unemployment rate and the QE2.
(3) US wants to lower its debt to foreign countries by devaluing the
dollar and causing inflation.
(4) The Fed tries to force China to de-peg by flooding the Chinese
economy with paper money. At the same time, the Treasury urges China
to strengthen the Yuan. US banks cannot make much in the low interest
environment in the USA, but they can use foreign currency exchange to
earn higher interest returns in China, earn profit through the
currency appreciation of the Yuan, and buy real tangible assets in
China with Bernanke's paper money created out of thin air. This way,
Bernanke is subsidizing his pack of wolves to raid and loot the
Chinese savings and hard assets, and he hopes that these banks in the
West can earn and steal their way out of insolvency.
(4) The USA has effectively declared China an enemy. Bernanke's pack
of wolves are buying assets in China (and other developing) countries,
but China cannot buy the same in the US. E.g., recent 3leafs deal was
withdrawn.
(5) Japan, as an export driven country, was essentially destroyed by
the US 2 decades earlier. Japan, through the diligence of its people,
had high saving rate decades earlier, but they had to buy the Treasury
bonds to support its exports because the dollar's reserve status. Then
the US asked Japan to float its currency higher, and soon, much of the
debt to Japan was inflated away. US "prevented" Japan from getting its
deposits in the US, and instead, loaned money to Japan. Now, Japan is
a debtor nation with high debt to GDP ratio and with 2 decades of no
growth. Nice work for the bankers and slavers. Caution to any
developing country: China, India, etc.
By the way, can anyone comment on what China and other developing
countries are doing about their capital inflow besides raising rates
and bank reserves and currency swaps?
I am an American. I will be happy if my Uncle Sam can loot and steal
for me. But no, I am angry. This loot does not benefit me. It supports
the growth of this fukking military industrial complex, this welfare
state where I pay highest taxes and see welfare recepients doing
nothing but bitching about current affairs; it supports the perpetual
conflicts around the world. I don't know what the best solution is,
but I believe no single country's currency should serve as global
reserve currency.
Is this it? Is the best the whole fukking human race on the planet
earth can come up with is industry and banking? Industrial products
benefit humanity: iPhone, Internet, supercomputers. The only product
of banks is debt and enslavement, wrapped in various colorful
packages. Is this all we've got? You've got to be fukking kidding me!
The fact that dinosaurs, which ruled for millions of years on this
same planet we inhabit, were wiped out in no time, tells us that the
probability of survival of our species in each year is less than
one. Let this probability be P, P<1; it does not matter how close P is
to 1, consecutive survial of humanity year after year trends to 0. If
we don't figure out something better sooner, we will meet the Great
Filter hell of sooner. No wonder we don't see other alien
civilizations.
The insidious purpose of QE2 can be deduced from the following observations.
(1) The national debt is impossible to pay off, not only debt to
foreign sovereign countries, but also the larger, internal debt to US
citizens through social programs such as Medicare and Social
Security. The interest rate must be low, and preferrably zero;
otherwise, the US government will default "immediately." QE2 helps the
US government to avoid immediate bankruptcy.
(2) Too-big-to-fail banks are still struggling. With low domestic
interest rates and people refinanced their mortgages to lower interest
rates, banks earn less. Higher interest rates can cause more home
owners to default. Hence, the second bank stress test at 11%
unemployment rate and the QE2.
(3) US wants to lower its debt to foreign countries by devaluing the
dollar and causing inflation.
(4) The Fed tries to force China to de-peg by flooding the Chinese
economy with paper money. At the same time, the Treasury urges China
to strengthen the Yuan. US banks cannot make much in the low interest
environment in the USA, but they can use foreign currency exchange to
earn higher interest returns in China, earn profit through the
currency appreciation of the Yuan, and buy real tangible assets in
China with Bernanke's paper money created out of thin air. This way,
Bernanke is subsidizing his pack of wolves to raid and loot the
Chinese savings and hard assets, and he hopes that these banks in the
West can earn and steal their way out of insolvency.
(4) The USA has effectively declared China an enemy. Bernanke's pack
of wolves are buying assets in China (and other developing) countries,
but China cannot buy the same in the US. E.g., recent 3leafs deal was
withdrawn.
(5) Japan, as an export driven country, was essentially destroyed by
the US 2 decades earlier. Japan, through the diligence of its people,
had high saving rate decades earlier, but they had to buy the Treasury
bonds to support its exports because the dollar's reserve status. Then
the US asked Japan to float its currency higher, and soon, much of the
debt to Japan was inflated away. US "prevented" Japan from getting its
deposits in the US, and instead, loaned money to Japan. Now, Japan is
a debtor nation with high debt to GDP ratio and with 2 decades of no
growth. Nice work for the bankers and slavers. Caution to any
developing country: China, India, etc.
By the way, can anyone comment on what China and other developing
countries are doing about their capital inflow besides raising rates
and bank reserves and currency swaps?
I am an American. I will be happy if my Uncle Sam can loot and steal
for me. But no, I am angry. This loot does not benefit me. It supports
the growth of this fukking military industrial complex, this welfare
state where I pay highest taxes and see welfare recepients doing
nothing but bitching about current affairs; it supports the perpetual
conflicts around the world. I don't know what the best solution is,
but I believe no single country's currency should serve as global
reserve currency.
Is this it? Is the best the whole fukking human race on the planet
earth can come up with is industry and banking? Industrial products
benefit humanity: iPhone, Internet, supercomputers. The only product
of banks is debt and enslavement, wrapped in various colorful
packages. Is this all we've got? You've got to be fukking kidding me!
The fact that dinosaurs, which ruled for millions of years on this
same planet we inhabit, were wiped out in no time, tells us that the
probability of survival of our species in each year is less than
one. Let this probability be P, P<1; it does not matter how close P is
to 1, consecutive survial of humanity year after year trends to 0. If
we don't figure out something better sooner, we will meet the Great
Filter hell of sooner. No wonder we don't see other alien
civilizations.
