Joe the Poor Plumber And The Bank Rescues That Kill Him

[Joanne98]

October 21, 2008

Elaine Meinel Supkis


Last year exactly, the G7 nations were all fighting with the US to get the dollar stronger. This was their first reaction to the banking crisis that began on 7/17/7. Today, they are grimly settling in with a very fragile return to the status quo which was lost back then. So stocks go up, of course. AIG is now running in circles trying to avoid being arrested for fraud, grand larceny and treason. Send them to China to be punished! And dear readers, those of you who hate socialism, read today's posting very carefully. The Rich LOVE socialism for themselves and intend to make you all pay for all this AIG-style socialism while you get nothing in return except a lifetime of debt. This is called 'peonage' or 'serfdom', not freedom.



Culture of Life News, October 21, 2007: Greenspaniel and the G7 Dwarves Fight Over Dollar Stuff

More information is now spilling out of the cave where the G7 dwarves met. Seems, as I predicted, the dwarves are not so united after all. Indeed, they are swinging hammers and axes at each other. The bank melt down is to be blamed on the Chinese Dragon who sent some observers to this confederation meeting. Hu needs to be entertained as he whacks rivals in the shins at home. HAHAHA. Turns out, the US vetoed condemnation of the weak US dollar. HAHAHA. Everyone wants BIGGER trade surpluses with the US. And reality be damned.
From Bloomberg:

The dollar fell to an all-time low against its major trading partners after the Group of Seven failed to address the record decline following a meeting of finance officials.
The policy makers, representing the U.S., U.K., Japan, Germany, Italy, France and Canada, stuck to language in prior statements by saying ``excess volatility'' in currencies is ``undesirable'' and that currencies should trade in line with fundamentals. They also intensified calls for China to let its currency strengthen, during the Oct. 19 gathering in Washington.
``The statement gives the market a green light to sell the dollar,'' said Brian Dolan, chief currency strategist at FOREX.com, a unit of the online currency trading firm Gain Capital in Bedminster, New Jersey, which has about $250 million of funds under management. ``With no comment from the G-7 about its weakness, the dollar could decline to $1.45 per euro in a month.''

OK: no one believes me, it seems. The problem isn't the yuan. It is the yen. I can't understand why this is so hard to understand. We don't talk about the yuan 'carry trade' because there is none. China's interest rates are in line with the rest of the world. China, like the rest of the world, has inflation. China can see the value of the yuan rise if the US and Europe wish to hold Chinese yuan but we don't hold hardly ANY yuan in our own FOREX reserves.

The game is, if one wants a weak currency, they must buy the currency of their trade rivals and then hold them. Ergo: if Europe and the US want the yuan to be strong, they must ask for lots and lots of yuan and then HOLD THEM. This poker game is laughably easy to understand. But they don't want any yuan or yen. Europe and the US want the world to do the way we made Germany and Japan do it with first, the Bretton Woods II Accords and the Plaza Accords. In these cases, the US, as the world's reigning empire, ordered everyone to weaken the dollar vis a vis their currencies and so they did. the Plaza Accords caused Japan to go into this huge balloon which pretty much destroyed their domestic economy.



There is this titanic battle going on: the US Titanic is sinking. It is plainly obvious to everyone except in the US, we have to all shout in unison, 'We are NUMBER ONE', not, 'Man the lifeboats!' And the average American should wonder about all those lifeboats that are rowing off to socialist Europe. The very rich need houses in America but want houses in Paris, London or Rome. Just to give a few examples.


Last year, note how all the G7 also wanted China to make the yuan more valuable. Note that there isn't so much as a peep about that, today. The stark contrast is painfully obvious. China wants global trade to resume based on the 2000-2007 status quo. Naturally! But so does Japan. China's gambit of forcing the yen up while demanding the G7 condemn Japan has worked! All discussion about the yuan has been dropped. Not only that, China is the creditor nation, not the US. So they sit in the cat-bird seat and can call all the shots.


Another story I wrote last year on this same day: Non-G7 Nations Mock G7 Dwarves

All the non-G7 nations are mocking the IMF and the entire G7 business. Led by Russia and China, they are trying to get the US and Europe to do something about their financial problems that are threatening the world's banking and trade systems. And it is time to visit Japan yet again, this always bothers me, how the US ignores the challenges of Japan and how the West focuses only on China but can't see how this interacts with Japan and how Japan is not on our side at all. Time to visit the IMF and the CIA web sites to talk about all the numbers and facts pertaining to this matter of US/Japan trade.
*snip*
So far, China hasn't bothered with chiding the IMF. This is because the IMF is impotent due to lack of banking power. The Brazilian and Agentinian ministers are doing the slapping for China. Both go to China for funding now, not the IMF. So they are emboldened to the point of open sassy back talk. The G7 dwarves just had their meeting and ended it in the traditional way: yelling at China while Japan stands to one side, sniggering. While I was visiting the Deep Water Ports in New Jersey, I noted that the Japanese ships were cloaked in anonymity while the Chinese ships had huge names painted on their sides. I constantly harp about Japan because of this cloaking device they use.


See? Last year, it was obvious to me that China, not the US, was now calling all the shots. And Europe understood that. This story was the very last time Europe tried to get China to raise the value of the yuan against the dollar. Instead, both they and Japan switched gears. Japan, later that month of October, 2007, ran off to China and had very, very secret negotiations over the business about the relative value of the dollar and basically, China agreed to call off their campaign to raise the value of the yen vis a vis the dollar and both focused only on strengthening the dollar.


My sole interest in the relative value of all currencies in the goofy, dangerous, unstable Floating Currency Regime launched unilaterally by President Nixon is philosophical. I do not seek to make money, gambling in this very rigged game where players who are not the inside players try to make a fortune trying to guess what manipulative games governments intend to play. It is a fool's casino, in the end. I want to bust up this game, not enable it. This game is destroying world trade, the United States and might even cause WWIII. Therefore, it is bad and I want it ended.


Evidently, Europe agrees. They lived through WWI and WWII. They caused WWI and WWII. So they have some hesitation about starting WWIII. But they still want unbalanced trade with their supposed ally, the US. And this will cause WWIII just as unbalanced lending and trade caused WWI and WWII. Most Americans are not aware that England was no longer the premier manufacturing nation in 1914. Germany reached equality with England and better for them, DESPITE BEING THE ONLY SOCIALIST NATION IN EUROPE, they had a budget surplus and became the world's creditor power back then! This stunned England and frightened France.


Let me say this as clearly as possible: nations that opt for German-style socialism always become great powers. They do NOT go bankrupt. This means strengthening the industrial base while protecting, not ravaging, the work force. National health is a key component here. The US got rich by winning WWI and WWII but did this while increasingly imitating Germany. After Reagan won, we chose to become Mexico, not Germany. So workers were wrecked, cheap foreign labor was allowed to ooze across our borders, a flood of imports from cheaper labor pools were allowed and encouraged to pour in and union strikes were basically outlawed.

Continued>>>
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