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08/09/2007 Archived Entry: "China shakes its big stick"
CHINA WILL NOT BE BULLIED but the bullies on capital hill continue their threats.
Silver here. The senators have advanced not one but two bills aimed at punishnig China for selling inexpensive goods that American consumers eagerly buy. The house has its own set of threats in the works.
The smug arrogance is simply amazing. "We in the Congress have to help China do what it knows it should do," oozed lifelong parasite Max Baucus. None of the criminals on the hill seem to know or care about the obvious parallels with the disastrous Smoot-Harley tariff. (described earlier.)
The Chinese know. They have saved well over a Trillion dollars, that's $1,000,000,000,000 FRNs, and it makes a monstrous big stick. Now they are rattling that stick.
"The Chinese central bank will be forced to sell dollars once the yuan appreciated dramatically, which might lead to a mass depreciation of the dollar." This and other blunt statements of fact was reported by The Telegraph in China threatens 'nuclear option' of dollar sales. Another Chinese noted that "Using them (Chinese dollar reserves) as a bargaining chip isn't something that can't be considered in response to some silly U.S. senators.'' High on the long list of reasons that the Chinese shouldn't suddenly make the yaun more valuable is that fact that it would cause huge losses in the value of that trillion-dollar account.
This may well be how the bullying federal government meets the end its arrogance and ignorance have earned. The Chinese hold the power to collapse the dollar at any time, and the congress has the power to anger the Chinese enough to do so.
Remember this logic as we suffer through 10-15 years of misery that will make the Great Depression look like a bad week: Congress thinks that average Americans have it too easy. They think that raising the price of nearly every manufactured good for sale in every retail store in the country by 40% is a good idea. Since higher prices help the people that bribe congressthings, congressthings conclude higher prices will help us all.
Is this the way the world ends?
Congress is adjourned for August. When they come back in September, will they trigger a financial collapse and ruin us all?
Brrrr. A chill has passed down my spine as I write. I'm buying more gold.
Posted by Silver @ 06:37 AM CST