Sunday, 7 August 2011

Empty Chinese Threats

You may have noticed some suggestions in the WSJ that the Chinese dictatorship "may slow down the internationalisation of the yuan" if the Fed goes ahead with QE3. Now, that is the sort of "threat" that would tickle you pink (!) because, for one, the dastardly dictators are doing nothing at all to liberalise their exchange rate and capital flows and, for another, the US would, if push came to shove, instantly destroy whatever will remain of China's economy after QE3 with a simple 10% tariff on all those useless cheap imports from the Beijing executioners!

The G7 meeting called for late Sunday, early Monday before Asian market open is intended exclusively to save the behinds of European leaders whose economies and finances now hang on a thread! (Nothing to do with China or their pathetic "threats".) What the Bernanke Fed must not do is get swayed or distracted: it must act with "Rooseveltian resolve" and tell these capitalist bastards in China, Germany, Japan and South East Asia that either they return to a regime of "relative", not "absolute", exploitation (see our recent explanation below for the definitions) or else all bets are off and they can hang from the nearest trees!!! Happy week-end, friends.

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