User 411717

How China's Dollar Peg Keeps Oil Prices High

when china buys dollars with yuan it does not increase domestic bank capital. it does increase net yuan financial assets in their banking system.

yuan balances at the central bank are increased for the seller of the dollars who then either spends or invests his new yuan balances in China.

warren mosler
moslereconomics.com

Mid-Year Macroeconomic Review: History Repeating Itself

On May 10 08:01 PM UbuTranscendent wrote:

> Warren,
>
> Washington is, after all, first and foremost, a political arena and
> has never let logic or sensibility significantly interfere in the
> exercise of power or allocation of the nation's wealth.
>
> The 'bottom-up' proposals for economic stimulus that you made last
> October were logical, sensible and comprehensible. They almost certainly
> would have benefited the American public and strengthened the economy
> far more than the course of action actually chosen by the wholly-owned
> Washington subsidiary of Goldman Sachs now managed by Mr. Geithner.

Thanks!

>
>
> Your proposals would not, however, have been nearly as beneficial
> as our present course has been for the GS parent company.
>
> Thus, in retrospect, we can now see how wrong-headed your proposals
> were.

Don't confuse a proposal with a forecast!

In the future, before distracting the public with merely great
> ideas, and logic only appropriate on the planet Vulcan, please consider
> first the meager needs of the downtrodden, impoverished, maligned
> and abused true heroes of Wall Street: banks.

I'm holding a walk-a-thon to help them out. Want to contribute $1 a mile?


>
> In parting, I note that the US Mint has leaked that an inspiring
> phrase will be printed on the new $1000 bill coming into circulation
> soon. (Soda machines are already being reprogrammed to accept it
> as exact change for a 20oz Coke.)
>
> I simply can't wait to get a new G-note in change at McDonald's and
> read those words of comfort:
>
> "What's good for Goldman Sachs, is good for the Nation."

(From an arb point of view, the currency is at least worth its BTU value)


>
> Ubu.
>