CLICK HERE LARGE PRINT EDITION: PAULSON THINKS CHINA CONTROLS OUR FEDERAL RESERVE « Culture of Life News 2
Paulson is back in the news to tell us that it is all the fault of the Chinese that we don’t save money and did you know that the Chinese, not the Federal Reserve idiots, determine our interest rates? And so, they forced us to go ZIRP ourselves because they refuse to spend money like we spend money? HAHAHA. And the Federal Reserve wonders when the bail outs will end! I say, when we hand over our nation to the Chinese leadership, I guess. After all, they control everything, don’t they? HAHAHA.
Outgoing US Treasury Secretary Henry Paulson said that a failure to address the rise of emerging markets and resulting imbalances was partly to blame for the global financial crisis, according to an interview published Friday.
Paulson told the Financial Times that imbalances between fast-growing nations which save, such as China, and those who spent were at the root of the problem.
He said that in the years leading up to the crisis, savings from nations such as China and oil exporters — at a time of low inflation and booming trade and capital flows — exerted downward pressure on yields everywhere.
This pushed down interest rates and drove investors to riskier assets, sowing the seeds of a global credit bubble that extended beyond the US subprime or high-risk home loan market and eventually burst.
Paulson delivered this speech in his usual dead-panned way. Like Greenspan, he can actually tell us what is real but not explain his role in all this reality nor his failures which made this reality a total hell. Bush does this a lot, too. I expect Obama to do the same stupid thing. ‘I see dead people’, may be a start for people who are delusional. But it does nothing about how these drivers of events creating dead people, are operating.
So, according to the guy who is bailing out all his banking gnome buddies, one element of the fiscal meltdown is ‘the rise of emerging markets.’ HAHAHA. Not free trade. ‘Emerging markets’ didn’t unbalance US trade. The US trade problem began some time back. When China was embroiled in the Cultural Revolution, for example. Back at the dawn of our deepening trade crisis, it was specifically Germany and Japan who were running ever-bigger trade surpluses in value-added manufactured goods beginning in 1968.
Paulson, of course, will not mention this history nor the fact that these two nations were some of the world’s biggest manufacturing giants of the first half of the 20th century. In the second paragraph of this idiotic story, Paulson continuously attacks China. Not Germany nor Japan. Both Germany and Japan have had nearly continuous trade surpluses with the US since 1968. China didn’t have one until after 1996. Eh? That is recent.
Next, the criminal gnome blames China AGAIN…for saving too much. And blames OPEC, while he is at it. And, as always, does not mention the #1 saver, Japan, who was #1 until 2004 when China finally overtook Japan. And only this year, did China beat Japan when it came to buying US government debts. Next, Paulson goes totally off the cliff:
The Chinese caused our own interest rates to fall! And that squeezed savers here so they had to be more ‘risky’! HAHAHA. My god. Paulson says this with a straight face because an army of idiots running the media machines all bellow this sort of bilge. Are they claiming that Greenspan dropped interest rates at the Fed from January, 2001- 2004 because China was saving money? How bizarre is this?
China never dropped their own interest rates to below 4%. But Japan was at ZIRP during all this time! And still are! And when the US raised interest rates, our economy began to tank, rapidly. And when the Japanese carry trade began to unwind in 2007, the Chinese were still saving money in their FOREX reserves and so were the Japanese. But the yen became stronger vis a vis the dollar.
Paulson mentions none of this. And hell’s bells, neither do 90% of US economics professors talk about Japan’s huge, bloated FOREX reserves and US debts as well as the damn carry trade business. So in summary: Paulson’s entire take on why we are going into a global depression is utterly wrong, totally backwards and extremely irresponsible. And what else is new?
Our leaders are set on this path that denies more than one vital reality. Including, the reality that we are bailing ourselves out of this debt mess by creating infinite debt.
Palm Beach police Sgt. Chris Proscia said the 4-foot-high statue was found Wednesday morning with a message attached to it reading: “Bernie the Swindler, Lesson: Return stolen property to rightful owners.”
Maybe I should steal the Statue of Liberty and then return it with a message attached: ‘Bernanke the Swindler, Lesson: Return stolen dollars to rightful owners’. Heh. Now, all I need is a really big helicopter…maybe Bernanke can let me borrow the one he is using to dump dollars into the Atlantic Ocean.
Massive rescue efforts by the US government and central bank in recent months helped avert a “financial collapse” and are working to stabilize the economy, a Treasury report said Wednesday.
The Treasury report to a congressional panel overseeing the 700-billion-dollar rescue plan passed in early October said the extraordinary actions probably averted deeper problems.
“Treasury, working with the Federal Reserve, the FDIC (Federal Deposit Insurance Corp.) and other regulators, has taken the necessary steps to prevent a financial collapse,” the report said.
“The most important evidence that our strategy is working is that Treasury’s actions, in combination with other actions, stemmed a series of financial institution failures. The financial system is fundamentally more stable than it was when Congress passed the legislation.”
As usual, I went off to the Treasury website to see what is going on. Here is all the news from this week, not in summary, but ALL the news:
Nearly nothing, of course. Just the usual swill. Note that they ‘want to increase SPENDING.’ Not saving, spending. And to do this, they and the Fed have worked hard as hell to…DROP INTEREST RATES! Um, they should talk to Paulson but Paulson is head of the Treasury! So what gives here?
Or rather, what are they giving away, here?
(Bloomberg) — The U.S. Treasury threw the door open to taxpayer financing for a widening array of companies and industries by drafting broad guidelines on aid to the auto industry.
The Treasury’s guidelines, published yesterday, would let officials provide funds to any company they deem important to making or financing cars. That leaves room for the government to provide money from the Troubled Asset Relief Program beyond loans already committed to General Motors Corp., GMAC LLC andChrysler LLC.
“There are going to be other industries that are going to have just as good a case,” as the auto companies, former St. Louis Federal Reserve Bank President William Poole said in an interview on Bloomberg Television. “We don’t know what those other industries are going to be. Where does this process stop?”
The steel industry is demanding billions. Everyone is demanding billions. And billions are being handed out. No one and I do mean, no one in the US system is saving anything except their own asses. TARP is going to cover our entire economy. And we are now officially in ZIRP territory here. Are the thieves looting our nation blaming the Chinese for our ZIRPacious mess here?
Of course! The Chinese put a gun to our heads and told us to spend and not save. And to have no return on savings, of course. If so, who let the Chinese do this? Now, we have to begin to arrest and maybe put a gun to the heads of all the lunatics who created this situation, eh?
HAHAHA. No, they want us to have them stay in control, of course. But even in their own narratives, they take no blame and blame the Chinese, totally. So, this means the Chinese control the United State economy from top to bottom. HAHAHA. I hope the Chinese are happy. Congratulations. And we should cheer all the goofy idiots who enabled this. Starting with Nixon. Who negotiated Bretton Woods II in order to make the dollar cheaper against the yen and deutsche mark because both defeated imperial powers were flooding the US with their imports.
I like the last line here, Mr. Poole of the rapacious and stupid Federal Reserve wonders ‘Where does this process [of bailing out absolutely everyone, using funny money] is going to end?’ HAHAHA. It will end when the Chinese order us to end it. Silly boy. Remember: they run our nation. We don’t. Of course, we actually do sort of run this nation…into the ground. We want infinite debt from Asia so we can buy and buy and not pay anyone any interest on these loans, of course.
While whining like babies. Boo hoo hoo. At this point, I think we will do better if we were run by the Chinese. The Chinese are not trying to take over Muslim lands in the Middle East. So they have no reason to start one war after another there. So maybe we can be run by ruthless but efficient people who don’t care about complex tribal European ethnic politics. Heh. That will fix everything.
Look at China this week: the industrialists who let poisons into the food chain were put on trial, plead guilty and will pay the price! And who is in jail here? Madoff? HAHAHA. He would already have been dispatched in China. Trade negotiators who are treasonous are shot, too. I don’t see a parade of criminals being brought to trial here. Arrest them all!
Citigroup Inc., Bank of America Corp. and Goldman Sachs Group Inc. retreated more than 60 percent as 80 out of the 84 financial institutions in the Standard & Poor’s 500 Index declined. Exxon Mobil Corp. and Freeport-McMoRan Copper & Gold Inc. fell as the Reuters/Jefferies CRB Index of 19 raw materials dropped a record 36 percent. Caterpillar Inc. sank 38 percent as the U.S., Europe and Japan experienced the first simultaneous contractions since World War II.
The G7 are going down in flames. What a shock. Not only that, none of them want to change anything at all. They want the status quo. The one whereby the US buys and buys and they all flood the US with high-end goods and we go deeper into debt and they hold our dollars in ever-bigger FOREX reserves and all would be fantastic!
Fixing this is impossible if people are insane. And we are insane, both when it comes to our support of ethnic cleansing regimes across the planet…our desire to see all religious groups break off from whatever countries they belong or our economic motives which depend on us growing only one thing: our mountain of debts. And these are all entangled: our wars are costing us an arm and a leg. And protecting the G7 nations so they can flood us with imports is bankrupting the US. And maybe we do need the Chinese to fix this!
After all, our own leaders think that China controls us. Talk about Manchurian chumps over here. Who programmed them? Madame Mao? HAHAHA. Back to Nixon and his visit to China…..
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