Seeking Alpha

Gary A's  Instablog

Gary A
93 Followers
190 Following
Send Message
I am retired from Fresno County. I like to blog and comment on financial matters. I knew of the housing bubble in late 2005, way before Cramer. I believe that the central banking establishment set up excessive and damaging credit vehicles both for investors and for borrowers. Investors were... More
My company:
Strategic Default Grows in Popularity
My blog:
Gary Anderson Business Insider Contributor
My book:
Ponzi Housing Scheme for the 21st Century
  • The Madness of Larry Summers and a Weak Dollar. 3 comments
    Nov 17, 2009 11:42 AM
    I was amused and alarmed at comments made on CNBC regarding the need for China to let their currency float against the dollar. Do we think that the Chinese are mad? Why would they cut off their export economy which they need?

    And the CNBC guest made the statement to the effect that the US dollar is a free market trade while the Yuan is set by the Chinese. The reason this is so stupid and so incredibly disingenuous is because the low interest rates are artificially low. We do manipulate the value of the dollar. It is NOT a free market. Why does Summers want to leave the US consumer for dead, as Chinese goods would rise in cost and assets like oil would go through the roof? 

    This continued attack on the US consumer by our government, in the name of a freely traded dollar is the big lie of the Obama administration in lockstep with Bush and Greenspan. Summers put the US banks back together (maybe) but then refuses to put the US consumer back together. I am not advocating massive credit returning, but rather a little deflation to give the US consumer a raise. He will buy if you give him a raise Larry. 

    Yet you want to steal from him by clocking the dollar! You want to export Wall Street greed and you have forgotten about the US consumer. Not a good way to win elections, but then, both parties are in the pocket of Wall Street.

    And we have Ben Bernanke clocking the dollar as well, as he made the stupendous statement that there are no bubbles in the US economy. That is just stealing from the mouths of babes! People are going hungry in record numbers in the USA because gas and commodities are still overpriced.

    There is no guarantee that the Chinese will pay for US goods even if the dollar collapses. A bird in the hand, the US consumer, is worth two in the bush, a hesitant Chinese consumer who saves.

    Larry and Ben, put the US consumer on a solid footing by establishing a strong dollar.
    Themes: strong dollar, dollar decline, larry summers, chinese currency float, low interest rates, commodity inflation, asset inflation, inflation, deflation, inflation tax
Back To Gary A's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

This post has 3 comments:

Track new comments on this article
  •  
    It is interesting that Mike Whitney points out the real exporting the US wants to impose upon China is the exporting of the financial sector greed and fraud! The financial sector wants to curb savings in China, get them to loosen up to credit, and steal from them just like it stole from us with the US housing ponzi scheme cooked up at Basel 2 and with usurious credit cards. Larry Summers doesn't want the US consumer to pay cash for our goods, leading to prosperity, but rather wants the Chinese to pay for our goods with credit, thereby fattening the financial sharks of Wall Street. What a patriot! NOT.

    Isn't America great? NOT: www.smirkingchimp.com/...

    From Mike: Summary: Geithner and Co. see the US economy languishing in a low-grade Depression for the foreseeable future, therefore, Wall Street must progressively move its base-of-operations eastward.

    This is the real reason behind Obama's trip to China. There's no truth to the rumor that US policymakers care about "currency manipulation" or the ongoing looting of the American middle class. That's rubbish. China's "dollar-peg" essentially serves the interests of the giant multinational corporations and Wall Street speculators who own the media, the courts, the congress, the White House and most of the country.
    17 Nov 2009, 01:38 PM Reply Like
  •  
    Foreign debts diminish by inflating the dollar, maybe that's a factor in play here. And, not to be rude, but do you honestly expect Ben & Larry to care for the well-being of the average working-class american? I have this bridge to sell, ya know? Feudalists didn't care about their subjects, and neither do neu-feudalists. Viva la revolución!

    -a fellow stumbler
    19 Nov 2009, 09:03 PM Reply Like
  •  
    Hey Zensan, they have to care every four years. Well, at least Larry. We will see if Obama slaps these Lords of crap across the face before he reliquishes the White House to the war party (neocons).

    All debt diminishes by deflating the dollar, until the dollar gets scarce. On main street it is getting scarce. So the question is, is inflation trickle down if the populace has no money to move the yellow stream? That is the question for our time!
    20 Nov 2009, 12:46 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • Erin Burnett is a member of the Council on Foreign Relations. She is a minion of the central banker cartel. #rt
    Apr 30, 2011
  • Shorting the China market with a stop at somewhere above 7 dollars. The valuations are really to the moon.
    Feb 3, 2010
More »

Latest Comments


Most Commented
Posts by Themes
2010, aaa bonds, aig bailout, alan greenspan, Alexander Hamilton, asset inflation, asset theft, audit the fed, australia, backdoor bailout, bailouts, balance sheet, bank fraud, bank lending, bank of international settlements, bank profits, bank regulation, basel 2, basel 3, bear market rally, Ben Bernanke, ben bernanke, Bernanke, bernanke, better deal, bis, blood suckers, bond spreads, bonds, boycott, brad delong, bubble crash, bypass too big to fail, bypass Wall Street, california, california debt, cantor fitzgerald, capitalism, carry trade, cartel, cfr, chart, China, china recovery, chinese currency float, chris whalen, class warfare, cnbc, CNBC, comatose banks,
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.