The Golden Truth: Hu Tells Obama to Take a Hike w/Regard to the Yuan

Monday, April 12, 2010

Hu Tells Obama to Take a Hike w/Regard to the Yuan

The next time the U.S. tries to jam currency policy down China's throat, China should tell the U.S. that it is going to take a sabbatical leave from participating in Treasury bond auctions. Rightfully, Hu says that China will determine its currency policy on its own accord:

LOS ANGELES (MarketWatch) -- Chinese President Hu Jintao said Monday that any reform to his nation's currency exchange rate will be based on China's own economic interests, according to a state-media report. Hu's remarks, carried by China's Xinhua news agency, came on the sidelines of the Nuclear Security Summit in Washington D.C., in which Hu met with U.S. counterpart Barack Obama. Xinhua separately reported that Obama said the U.S. respects China's sovereignty in determining its currency policy and hoped a solution could be found through dialogue...LINK

Meanwhile, as http://www.zerohedge.com/ reports, Treasury tax withholdings plunge this year vs. last year LINK, and the Treasury is burning through cash like a drunk in Vegas so far during April and added $53 billion in debt so far LINK. Geithner may break the law to avoid paying his own taxes, but he sure likes spending other people's money!

2 comments:

EconomicDisconnectMonday, 12 April, 2010
Well, does the government need tax revenue? At this point the printing press is becoming option number..., well the only option.
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Dave in DenverMonday, 12 April, 2010
LOL. Sad but true. I mentioned to Jesse earlier that the Fed can control the long end of the yield curve if it's willing to monetize a large portion of upcoming Treasury auctions. But that won't help interest rates in the mortgage market unless it's willing to monetize mortgage issuance as well.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.