China Blames Wall Street Meltdown On Fed Overissuance Of Currency

Discussion in 'Economy' started by Octoldit, Oct 7, 2008.

  1. Octoldit
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    Octoldit VIP Member

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    Paul Joseph Watson & Yihan Dai
    Propaganda Matrix
    Friday, September 19, 2008

    "Saving financial institutions at cost of taxpayer part of wider agenda to increase control over global economy, says Communist state media".

    China's state media today reports on the real reason behind the Wall Street meltdown and a subject that the mainstream US media dare not mention - the Federal Reserve's overissuance of currency - which the Chinese say is part of a wider agenda to justify increased control over the global economy.

    The Bush administration today announced a plan to use hundreds of billions of dollars of taxpayer money to buy up up bad mortgages and other debts. The process of injecting more fiat money into an already over-inflated system had the desired effect - the Dow Jones shot up 450 points - but the dollar, following a brief jump, began to plummet.

    According to numerous Chinese state media news sources today, the Federal Reserve's continued zeal for propping up the market by injecting illusory liquidity is part of an agenda to gain trust and grease the skids for increased government intervention in financial markets.

    China Finance , China News and Chaobao Financial News, all state owned media outlets, slammed the Fed for taking action that will only make long term economic conditions worse and devalue the dollar by "creating money that does not exist which leads to the inflation of liquidity," a policy contrary to China's position as a holder of vast reserves of US dollars.

    The analyst quoted by Chaobao Financial News highlighted "that when there is market failure, the paramount purpose of government intervention should be saving the market for the benefit of the people: Relief, Recovery and then Reform," and that "Protecting the rights of people who are suffering in the housing market and as a result of high oil prices should be treated as a priority."

    The analyst added that by concentrating on saving just a few large financial companies, the Fed is creating wider financial chaos while arousing anger and suspicion by "only protecting and encouraging large companies' wrong doing."

    CEIBS Professor of Economics and Finance Xu Xiaonian told a conference yesterday that "The fundamental source of Wall Street's meltdown is caused by Federal Reserve overissuing currency." He cautioned that the US government has already exceeded its scope in terms of intervention compared with their usual policy.

    Similar sentiments were echoed by economist Zuo Xiaolie, who said that the amount of money injected into the market will have little real impact, but that such measures are a "Narrow minded way that the Federal Reserve uses to diversify the pressure of currency adjustment to other countries, which leads to the devaluation of the dollar, causing imbalance in the global economy."

    "The amount of money that has been put into the market can not fundamentally save the market," said Xiaolie, adding that the move was merely part of an agenda to "regain the trust and justify future further intervention in the economy."

    On Wednesday, China's official People’s Daily newspaper, the voice of the ruling Communist party, said that the US had unleashed economic "weapons of mass destruction" and set off a "financial tsunami" by allowing Wall Street lenders to trade in subprime debts and unstable financial derivatives, according to a Press TV report.

    China has previously threatened to liquidate its vast holding of US treasuries, amounting to $1.33 trillion, if Washington imposes trade sanctions to force a yuan revaluation. The Communist power has also repeatedly expressed its anger at the Fed's indifference to the weakening dollar. If China were to dump the dollar it would likely set in motion a chain of events that would lead to a collapse of the greenback.

    We know we are in trouble when the Chinese Communist Party sound like bastions of sound money policy and fiscal conservatism in comparison to the Bush administration and the Federal Reserve, who in creating more money out of thin air continue to bail out their friends on Wall Street while the economic future of hundreds of millions of American citizens is sold down the river.


    Translations provided by Yihan Dai.
     
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  2. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    They are correct.
     
  3. sealybobo
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    sealybobo Diamond Member

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    I said this yrs ago! If you forgot, when the gop controlled both houses, bush kept going back for more and more money, to the point they had to print more. China is correct. Of course they kept loaning us the money. lol.

    ps. I heard today that countrywide in texas only is refinancing sub primes at 3.something percent.

    Why Texas? Some say it is possible mccain could actually lose texas.

    Or is it because of bush?

    They sure shit on michigan, so it wouldn't surprise me if they treat texans better. I'm on my I phone so don't know how to cut and paste. i'm sure it is googleable.
     
  4. dilloduck
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    dilloduck Diamond Member

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    Except for the fact that they left Congress and previous administrations out of the list of villains.
     
  5. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    There are plenty of people who certainly didn't help our economy, but the Federal Reserve holds more responsibility than anybody else.
     
  6. dilloduck
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    dilloduck Diamond Member

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    I agree--and it's not just an entity---it's PEOPLE. Time to take names and kick ass because I'm sure they will all have their tracks covered soon if not already.
     
  7. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    This sounds like good news...

    The 'crisis' has the side effect of devaluing the shit-pile of cash that Wal-Mart has been shipping to China...

    15% off of that stack would be significant...

    Cool, right?

    -Joe
     
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    Last edited: Oct 7, 2008
  8. Dirt McGirt
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    Dirt McGirt Bad Mother****er

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    The problem with that is China might start cutting corners and shipping us unfinished products with do-it-yourself, lead-based paint kits.
     
  9. editec
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    editec Mr. Forgot-it-All

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    If today's news on the world stock markets is any indication, the FIX is NOT working.

    Of course it's not....it's not the FIX I outlined.

    Saving the banks while leaving the homeowners to their own devices crashes the real estate market.

    Apparently the Master class is so used to skating away and leaving the people to bail them out, they cannot imagine that they have broken the back of their saviors.

    Consumers will NOT spend money, the rescession will get worse, worldwide banks will continue to fold and governments will be left holding the bag infusing money they don't have trying to prop up their economies.

    Fear will begat people not spending money which begats more unemployment which begats still less consumerism, more unelpoyment and so forth and so on in a vicious cycle of contraction.

    Anyone read the FDR speech I posted last night?

    You ought to.

    We're going to need another FDR to save us from our master classe's idiotic hubris, folks.

    I'm hoping Obama is the man who can do it, but he (or McCain) is facing formitable problems.

    We are watching capitalism eat itself again.

    We are watching cpaitlist using the same goofy methods to save themselves, thus exascebating the problems for our economies.

    They keep fucking aorund like this and they're setting us all up for some kind of truly socialistic response.

    The people, many of them on this board, who are currently die-hard capitalists, are going to rethink their belif systems when they see 25% unemployment and they are paret of it.
     

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