Saturday, January 24, 2009

US treasury secretary blaming China for currency manipulation-- Remember Nixon

American treasury secretary is blaming China for manipulating the currency. I suggest that he read the presidential archives kept in Washington to understand how China is able to do that. How can a country manipulate a real currency? Who removed Gold standard in the first place?

China does manipulate currency, America does manipulate markets and interest rates, we all do that. Who are you to define what is right and what is wrong? If there was a Gold standard, China would not have been able to manipulate, who is to blame for that?

Again you cannot keep blaming China for your deficit problem. You should learn to live within your means. China should respond by stop buying US treasury bonds and make America officially bankrupt. America is already bankrupt.

It is in Chinese interest that America stays on its feet so that it can pay back to China ;).

I do not understand the reasons why a $2trillion deficit country calling itself economic power. In normal society we call such people irresponsible and cast him out of the society. Strength of America is that the alternative is much worse.

I predict America will default soon. China, as unpredictable it is, may not buy the US treasury bonds and this will inevitably cause America to default and Dollar will crash. If you are long on Dollar, you get gambler status.

No amount of fiscal stimulus is going to work. Confidence is at its nadir. America is just increasing its deficit and risking a total collapse of its economy.

My comments are based on 10% data, and 90% sentiments/gut feeling. But that is the whole point, you do not need a lot of data, it all works on sentiments.

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