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China Warns US To Stop Global Inflation by Elaine Meinel Supkis
The head of the Bank of China, Zhou, is warning the US central bankers that they are causing global inflation. Not speculators. Of course, this news is from Xinhua News and is not being broadcast across the planet. Dead silence in the West. This is because the G7 central bankers are trying to pop all the blame for this banking collapse on home owners in California or Las Vegas, not themselves. To produce more liquidity so they can flood the planet with more Funny Money™, the biggest banking houses are lending money to hedge funds so they can buy up loans from these same banks! This is crazy, of course. And will make the banking collapse worse. But they don't care. They are desperate to move these Alliance-Boots out of the shoe store and into the streets so they can make more and more and more loans. Which we don't need. These loans are only so people can line their pockets. And the Labour Party in England is going bankrupt, too. And UBS is telling its executives to avoid arrest in the US. Fed's rate cuts "add to inflationary pressure"
Now that the status quo has been partially restored, we are back in the same box we fell out of last summer. The US is again flooding the world with Funny Money™. And when interest rates were artificially dropped below the rate of real inflation, a flood of this useless currency has poured over the planet causing inflation in all countries trading with the US including Japan. Basically, at this international forum, China is blaming the US for global inflation. And this means the US must change or else. Of course, the Fed will say, 'So what?' But this is dumb. The #1 sinkhole for excess US dollars is the FOREX reserves of China's central bank. They are weighing when to take some retaliatory actions.
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The U.S. Federal Reserve's interest rate cuts have helped increase liquidity, but have also led to rising prices in commodities, Zhou Xiaochuan, governor of the People's Bank of China, said on Friday. The central bank governor said this has affected the anti-inflation policies of emerging markets.
Zhou was speaking at a conference following the release of a report by the Commission on Growth and Development, an international organization that focuses on policy consultation in emerging markets, and provides reference for aid programs.
"The U.S. Fed has significantly reduced interest rates on the other hand, global commodity market prices have risen. A lot of developing countries are now suffering from rising inflation," Zhou said.
The Chinese, as I keep on saying, are very angry with the US now. The demands that China raise the value of the yuan have died down in the West only because Japan is demanding the US make the dollar strong. So it is rising against the yen and the carry trade is slowly resuming. All the bankers in the West know that the banking crisis didn't start because a few home owners in Stockton, California couldn't pay their monthly interest payments on their Mini McMansions. They know it started instantaneously with the sudden drop of the dollar against the yen. When the yen strengthened, the entire liquidity cycle in the West was disrupted. Suddenly there was no more 'liquidity'! Zhou was speaking at a conference following the release of a report by the Commission on Growth and Development, an international organization that focuses on policy consultation in emerging markets, and provides reference for aid programs.
"The U.S. Fed has significantly reduced interest rates on the other hand, global commodity market prices have risen. A lot of developing countries are now suffering from rising inflation," Zhou said.
Now that the status quo has been partially restored, we are back in the same box we fell out of last summer. The US is again flooding the world with Funny Money™. And when interest rates were artificially dropped below the rate of real inflation, a flood of this useless currency has poured over the planet causing inflation in all countries trading with the US including Japan. Basically, at this international forum, China is blaming the US for global inflation. And this means the US must change or else. Of course, the Fed will say, 'So what?' But this is dumb. The #1 sinkhole for excess US dollars is the FOREX reserves of China's central bank. They are weighing when to take some retaliatory actions.
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.
(contd)
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