Saturday, 6 November 2010

The Empire Strikes Back -or America A-loan

After the failure of last year's "quantitative easing" - sounds like an aperient! - the US has now decided to relieve itself all over the world's living room carpet by starting a new round of huge debt-busting inflation. Hold your noses everybody because the stench of bad money pouring out of the Fed is matched only by the putrid self-justifications oozing out of Washington. Like some mechanically clueless housewife trying to prime a seized engine that isn't out of gas but out of cylinders, the Americans believe they can run a nation on finance alone and manufacturing be damned. The result is a futile attempt to blow bubbles on Wall Street and blow smoke everywhere else.
Bernanke, one of the original '08 perps and now Prince Obama's effective regent, tried to bluff the Chinese into making concessions they had no interest in making. That failing, he pulled the joker of inflation out of the deck, clearly intending to wipe out the value of China's hard earned dollars. The bad faith behind these sharky maneuvers would tax credulity itself had it come from anywhere else than America. As always, the "national interests" of the world's policeman trump all considerations of fair dealing. And yet, there's Bernanke trying to hustle the Chinese into sacrificing their own national interest for "the good of all." He calls the low value yuan an "effective subsidy." And it is. But what was the trillion odd dollars he tossed the banks, car makers and housing agents last year- a loan? Mark Steyn is right: America is alone - alone in believing all the lies it tries fobbing off on the rest of us.
Bernanke is Jewish (surprise!) so I suppose he can congratulate himself on what the chosen ones would call his chutzpah. The scripturally challenged Chinese must be forgiven if they translate it as out and out hypocrisy. It'll be the Yanks themselves, however, who end up lost in translation when the Chinese - and Japanese and Arabs and Euoropeans - start dumping their dollars en masse and the American consumer needs a wheelbarrow of cash just to buy a loaf of bread. Whole grain, of course, - by then we'll all know the high cost of getting costive.

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