Knock it Off, Bernanke, You're Pissing Off the Chinese

Sunday, November 15, 2009 , , , , 1 Comments


Our biggest creditor
also enjoys a little cat holocaust
our President is there as we speak
begging them to buy more of our debt
does that make sense?!



First Geithner offends the Chinese by saying they're playing with their currency at the exact same time Zimbabwe Ben cranked up the presses and started printing his way out of disaster.

Then we give ZB another term, knowing damn well that China can't stand the guy.

Now we're riding ZIRP for all it's worth hoping no one will notice. Smart, people, real smart.

Bloomberg:

China’s banking regulation chief joined Hong Kong’s leader in blaming the Federal Reserve’s interest-rate policy for fueling speculative capital flows that may spur asset-price inflation.

“The continuous depreciation in the dollar, and the U.S. government’s indication that, in order to resume growth and maintain public confidence, it basically won’t raise interest rates for the coming 12 to 18 months, has led to massive dollar arbitrage speculation,” Liu Mingkang, chairman of the China Banking Regulatory Commission, said in Beijing yesterday.

Liu spoke two days after Donald Tsang, the chief executive of Hong Kong, said the Fed’s policy of keeping rates near zero risks sparking the next financial crisis. Fed Chairman Ben S. Bernanke has pledged to hold down borrowing costs for an “extended period” to secure a U.S. economic recovery.

Low rates and the dollar’s tumble have “seriously affected global asset prices, fuelled speculation in stock and property markets, and created new, real and insurmountable risks to the recovery of the global economy, especially emerging-market economies,” Liu told reporters in Beijing at the International Finance Forum.

The debate over the Fed and asset prices comes years after some analysts criticized the U.S. central bank for holding down borrowing costs for too long in 2003 and 2004. Dallas Fed President Richard Fisher is among those who have said the Fed’s actions unwittingly contributing to the housing bubble.

Blah blah blah blah blah.

We're pissing the world off now, that might be our cue to back out of this mess.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

1 comments:

Junior:
The PBOC ignores its role in the global hyperinflation, i.e., it is inflating China's money stock to prevent the RMB from rising against the dollar. This is a mistake. The PBOC has been looser in recent months than Zimbabwe Ben.

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