“Be Nice to the Countries That Lend You Money”
December 21st, 2008Nobody goes out looking to engage in a Mexican standoff, but that’s the apparent nature of any “order” that’s alleged to exist in the global economic system. Useless university courses, taught by Council on Foreign Relations goons, will use a different term to describe this strapped-to-the-mast/Mexican standoff/fiat currency Hell phenomenon:
Economic Interdependence.
—Japanese Economists Consider Asking for Yen Denominated U.S. Treasuries
Via: The Atlantic:
With so much of China’s money at stake, did U.S. officials consult the Chinese about the rescue plan?
Not directly. We were talking to people there, and they were hoping that we would be supportive by not pulling out our money. We know that by pulling out money, we’re not serving anyone’s good. Including ourselves. [This is the famous modern “balance of financial terror.” If Chinese officials started pulling assets out of the U.S. and touched off a run on the dollar, their vast remaining dollar holdings would plummet in value.] So we’re trying to help, at least by not aggravating the problem.
From the article:
“I began the question by saying that China would hurt itself by pulling out dollar assets—at which he interjected, “in the short term”—and then asked about the long-term view”
….
“I have great admiration of American people. Creative, hard-working, trusting, and freedom-loving. But you have to have someone to tell you the truth. And then, start realizing it. And if you do it, just like what you did in the Second World War, then you’ll be great again!
If that happens, then of course—American power would still be there for at least as long as I am living. But many people are betting on the other side.”
So why isn’t he? Just waiting for when it won’t be economically fashionable anymore or for Bretton Woods II? I wonder what his “long term” plans are or if this is all agit-prop..