Gary A

Why Krugman Is Wrong About the Yuan

You will kill the US consumer if this game continues. Then that asset inflation will kill the US and world economies. I suggest that China will stop the hot money from Wall Street casino from jacking up their assets. Time to play hardball with Wall Street. Looks like the Saudis are playing hard ball with speculation as well. Too bad our leaders aren't as patriotic.

You are assuming that there are consumers in the world as dedicated to shopping as US consumers. You are wrong. And I am not advocating new US consumer debt, just more real money in their pockets.


On Nov 20 09:20 AM Tetrapod wrote:

> I keep hearing people say that the US has nothing to export.
> The US (as of 2008) is the 3rd largest exporter in the world:
> 1) Germany $1,466,137,472
> 2) China $1,428,686,080
> 3) USA $1,299,898,880
> 4) Japan $781,412,160
> Our exports are still only 10% lower than China's.
> If China's currency manipulation is ended, millions of jobs will
> return to the USA, and we will be buying capital equipment from China's
> bloated manufacturing infrastructure at a fraction of their cost,
> as manufacturing is repatriated.
> The US Administration is playing this correctly, forcing the dollar
> down in a big game of Chicken, until China is forced to drop or loosen
> their peg.

Why Krugman Is Wrong About the Yuan

Credit cards, lol. And usurious ones too!


On Nov 20 12:19 PM waf76 wrote:

> I have to agree with this article. Besides war, what does the US
> export?

Why Krugman Is Wrong About the Yuan

But a stronger dollar puts more money in the strapped US consumer's pockets. That is crucial to world recovery. Not a debt laden consumer, but a consumer with more purchasing power is the answer. Obama doesn't get it.


On Nov 20 01:38 PM user396040 wrote:

> I strongly disagree. A strong dollar makes it harder for US companies
> to export and compete against imports, discourages foreign tourism,
> and makes it harder to pay back dollar denominated debt. We need
> to get this country working again. There are all sorts of products
> and services we can and do export - high tech, food, etc. etc. In
> the long run, we must improve our balance of payments situation and
> it is impossible to do so at current exchange rates.

Why Krugman Is Wrong About the Yuan

Fox Business News and Cavuto are doing the same thing. Sour grapes from all these losers.


On Nov 20 01:51 PM mna wrote:

> Krugman is just parroting the official democrat position. Just know
> the political motives behind his comments and you'll be fine. It's
> fine to point the fingers at China, because we avoid having to point
> the finger at ourselves.
>
> That said, I do think the Yuan needs to be appreciated. It's actually
> in the interest of the Chinese to see it rise. A rising Yuan will
> do 2 things:
> 1) shut the American public up
> 2) increase their relative wealth in the world
>
> What it will NOT do, is decrease the trade deficit appreciably.
> It didn't work for Japanese deficit (think plaza accord), and it
> won't work for the Chinese deficit. When the Chinese do appreciate
> the Yuan, and the trade surplus doesn't get any smaller as so many
> predicted, the light bulb will finally come on. The average American
> will not have anyone to blame but themselves anymore. Then maybe
> we'll get some real fixes to the system.

Why Krugman Is Wrong About the Yuan

America and Wall Street want to export credit cards. That is why the Chinese know that their people will not go overboard in debt. That is why China knows that Wall Street and the US government are a threat to their export driven economy.

I am not for massive American debt either, but a stronger dollar would put more money into the pockets of Americans. That is crucial. Larry Summers, by driving the dollar down is destroying the golden goose of world prosperity, the US consumer.

Don't lean on the Chinese to consume away US problems. If they are smart they won't do it.


On Nov 20 02:41 PM Dragoman wrote:

> Great to hear that Vietnam can produce cheaper than China!
> It's seems like kicking a handicapped kid to point out that Christmas
> inventory was already priced and done so in dollars i.e. guess to
> takes the currency hit? Beyond that, the US doesn't export anything?
> Really? Someone please call the World Bank / IMF and tell them their
> stats are all wrong..
> Basically I-phones are nice, but I'm not sure that the Chinese government
> manipulating their currency is winning much support among the US
> manufacturers servicing the construction sector - which was a bit
> larger than the market for mobile phones when I last looked - and
> has been slogged by cheap but contaminated Chinese product.
> The reasons cited by Mr. Rein are the reasons why the US is in facing
> the trade crisis it is facing today. A policy of 'consume-or-die'
> is not the only option, and continuing a policy of exporting their
> personal wealth to China is understandably something American voters
> might not wish to continue.
> If China doesn't agree to float the yuan, then maybe a gradual depreciation
> of the dollar would clarify the situation, having at once the gratifying
> effect of improving the competitiveness of American products on foreign
> markets at the expense of China's national reserves.

Why Krugman Is Wrong About the Yuan

You don't get it. Americans cannot afford asset inflation. This is average Joe propaganda and I am all for it. I hope Wall Street chokes on the fact that China is also likely to stop the Wall Street hot money from pumping up their assets as well.

This world must fight asset inflation. And if that means killing Wall Street then so be it!


On Nov 20 06:37 AM BigBadBarry wrote:

> This almost sounds like Chinese Government propaganda to me...

The Developing World Takes Over

It is truth that the military of the United States should consider protecting the citizens of the United States from the central banks and their home bank, the BIS: bank-abuse.com/bankste...


On Sep 30 11:22 AM conceptwizard wrote:

> 'I believe that banking institutions are more dangerous to our liberties
> than standing armies. If the American people ever allow private banks
> to control the issue of their currency, first by inflation, then
> by deflation, the banks and corporations that will grow up around
> the banks will deprive the people of all property until their children
> wake-up homeless on the continent their fathers conquered..' Thomas
> Jefferson, (1743-1826), 3rd US President, 1802
>
> Why not ask yourself "who does Benanke answer to"? The FED is not
> owned by the Government, but controlled by the Bank of International
> Settlement", as are all central banks.
>
> Does he answer to Congress--- No, he wont do anything they ask.<br/>Does
> he answer to the President----NO
> Does he answer to little Tim Geithner---No
>
> So who then? is he on his own? what gives him the authority?
>
> I for one have major concerns that the FED has no mandate to protect
> the American public. Its plain who they favor.
> We as taxpayers pay interest on the money that he is printing with
> no oversight or controls in place, what has to happen before people
> wake up to the fact that we have no control over our destiny.

The Developing World Takes Over

I just can't base an entire world stock recovery on a few Chinese and Indians buying cars. There is just too much to overcome as these folks don't have a safety net at all. It isn't going to happen, IMO.


On Sep 30 10:24 AM Old Trader wrote:

> Gary A,
>
> I believe that you're going to see exactly that happening (a growth
> in the consumer sector in the developing world). I'm referring specifically
> to China and India, although its happening elsewhere in Asia, too.
>
>
> To an extent, one can see that happening as evidenced by the growth
> in auto sales in both countries. I'm not saying those populations
> will replace the US consumer's spending overnight, but the trend
> is in place.

The Developing World Takes Over

The folks in the developing nations have to turn into consumers. I don't think they will soon replace the Americans. And the Americans have hunkered down because they know that the financial system has screwed them.

And if the author can't even tell if we are going to have inflation or deflation, then how does he even know if we are in a world wide recovery? In the 70's we could afford inflation. We cannot afford the tax for the rich that is inflation at all right now.

So the Fed will raise rates and housing will die and the consumer will save. How is this a recovery?

Reviewing Our January 2009 Market Predictions

This article is very troubling to me. It is mathmatically impossible for the consumer to lead the recovery, yet he makes up 70 percent of the economy. This article is telling us that the other 30 percent will offset the decline in the 70 percent. The government cannot stimulate forever because the Fed and the international banksters in Basel do not want the largest economy in the world to behave like a banana republic. They will put mark to market or whatever they have to onto the banks in regulation in order to keep the US dollar under control.

Just remember these same banksters allowed off balance sheet banking at Basel 2 in the 1990's, so you cannot trust them.