Bernanke Sets Off United States China Currency War
by Time is running out for this government and the American people. The feel good speeches and antiquated theories will not return America to the strong and vibrant nation we once were.
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Did the latest move by Ben Bernanke set off a United States China currency war? Looking at Tuesday’s drop in Dow Jones Industries it leaves you to wonder if this wasn’t the first shot in a long and devastating economic war. At one point yesterday the Dow dropped below 11 thousand. Economist and market experts say this is nothing to worry about, at least we are not below 8 thousand. That would be true until you look at how close the drop-off occurred to the Bernanke announcement that the Feds will be printing another $600 billion to buy back long term treasury bonds. This had the effect of devaluing the dollar and made investors of our debt like China and Japan worry about the course the United States was heading in. Yesterday major investors of our debt sold off a large number of their US Treasury Bonds, China once our largest investor and owner of our debt began the sell off 9 months ago.
Tuesday’s actions of investors had the opposite effect Ben Bernanke was hoping for, instead of weakening the dollar and making our exports look more inviting to foreign countries the dollar gained strength against foreign currency. Normally a strong dollar is a good thing but if we are in a currency war with China and their under valued currency, we will continue to lose in the export/import war that is quietly going on.
Oil and other commodities are still over the fair market value and there is no acceptable answer as to why. There are no environmental reasons for the increase in commodities and the production of crude oil is not at an all time or historical low. While the experts will look around for all kinds of excuses for oil being over $78 per barrel it is all nonsense. The real reason is inflation and greedy hedge fund investors like George Soros gaming the markets for political reasons.
Tuesday’s increase in the strength of the dollar will only be temporary at best. As the rate of inflation increases on commodities it will begin to filter out into other areas until everything is consumed by rates equal to or greater than the 1970s. Add a global currency war on top of high inflation and 2011 will be a repeat of the 1930s. Bernanke and China are playing a very dangerous game and President Obama acts like he doesn’t have a clue. The world has been telling President Obama to get his economic house in order and lower our debt but he still thinks the Keynesian economic theory is the solution to the recession and high unemployment. The rest of the world has dismissed this theory and believe President Obama is following a fools folly.
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