Diamond Author
Do you recall how the Secretary of Treasury previously enjoyed having a weak dollar, as it would assist the US in global exports, trade flows, and provide manufacturing jobs and a strong industrial base? Remember how the Nixon Administration thought that was a really smart play? Well, it looks like that surely bit us in the butt. How so you ask? Well, the Chinese pegged their currency to the dollar and as the dollar fell, theirs did too - automatically.
And then just about the time everyone in the world including the Japanese, EU, and the US started complaining before the G-20 meeting in 2010, China promised to let their currency float, and everyone was overjoyed, but somewhat surprised. Why did they do it? To save face - no, they knew that they had just blown at least a trillion dollars in bad loans as part of the stimulus package to get them through the global economic crisis. The money flowed to municipal vehicles, which speculated in all sorts of global stocks and commodities and with all the corruption basically mostly disappeared.
Thus, they ended up completely debasing their currency. So, all that real money in negative trade-flow balances, and all the money we printed and put into the economy, went to China, and the taxpayers now owe the interest on the debt of creating it all. So, with all this now known, it should be obvious what must happen. The US Taxpayer cannot be left on the hook for bad monetary policy, or for the corruption, or currency manipulation in China.
Therefore, in reality - morally speaking the US Taxpayer does not, cannot, and should not owe on those debts. The citizens of the US never got to use that money more than a couple of transactions before it ended up in China, a nation now through its protectionism, and really almost "an act of economic warfare" as per Chinese Think Tanks, and that money isn't coming back. We basically have given up our economic strength, part of our national sovereignty, and put the screws to our middle class due to piss poor planning of trade, economic, and monetary policy.
Why is it that our leadership cannot do better than this - in my opinion what's transpired is totally unacceptable, and it almost looks as if this fiscal disaster was planned, because I cannot for the life of me consider anyone in the position of our national monetary policy being that incompetent. Thus, as you can guess - I am not pleased with what's going on.
About this Author
Lance Winslow is the Founder of the Online Think Tank, a diverse group of achievers, experts, innovators, entrepreneurs, thinkers, futurists, academics, dreamers, leaders, and general all around brilliant minds. Lance Winslow hopes you've enjoyed today's discussion and topic. http://www.WorldThinkTank.net - Have an important subject to discuss, contact Lance Winslow.
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