Germany Calls Out Geithner’s Hypocrisy, Says Money Printing Is FX Intervention

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homeDARPAcontributorsnewsforumszh-tshirtstoredonaterssmanifesto I Dare Paul Krugman To Debate Austrian Theory Posted by: Econophile Post date: 10/23/2010 – 15:34 Paul Krugman doesn’t know anything about Austrian economic theory but he feels competent to criticize it. He has refused to debate the topic in the past. Now a top notch Austrian theory economist is challenging him to a debate. The lure: $100,000. Will he do it? New Mortgage Crisis in Iceland: Could U.S. Be Far Behind? Posted by: asiablues Post date: 10/23/2010 – 20:48 Some scary developments in Iceland including a 41% inflation in the past three years, 63% of mortgage is underwater, and 40% of homeowners are insolvent make me wonder how far behind is the United States? Gulf Oil Spill: Mission Accomplished or Ongoing Crisis? Posted by: George Washington Post date: 10/23/2010 – 20:07 Mission accomplished … wait, WHAT??? Navigation PollsDonate To Zero HedgeRecent posts Shopping cart View your shopping cart. User login Username: * Password: * Create new accountRequest new password Zero Hedge Reads Angry BearBearish NewsBoom Bust BlogChina Financial MarketsChris Martenson’s BlogContrary InvestorCoyote BlogCredit WritedownsDaily CapitalistDaneric’s Elliott WavesDealBookDealbreakerDr. Housing BubbleFalkenblogFibozachiFund My Mutal FundGains Pains & CapitalGlobal Economic AnalysisGonzalo LiraImplode-ExplodeInfectious GreedInvesting ContrarianJesse’s Café Américain Market FollyMax KeiserMinyanvilleMises InstituteNaked CapitalismOf Two MindsOilPrice.comPension PulseShanky’s TechBlogThe Daily CruxThe Mad Hedge Fund TraderThe Market TickerThe Technical TakeThe Underground InvestorWall St. Cheat SheetWashington’s BlogWealth.netWhen Genius Prevailed Home Germany Calls Out Geithner’s Hypocrisy, Says Money Printing Is FX Intervention Tyler Durden's picture Submitted by Tyler Durden on 10/23/2010 15:23 -0500

BrazilGermanyMonetary PolicyrecoveryTim GeithnerYuan

After months of US bitching and moaning about China’s so called unfair exchange policies, when it is the US Fed which is the biggest currency manipulator in the world by orders of magnitude, one country finally had the guts to stand up and call out Tim Geithner on his endless bullshit. At the G-20 meeting, per Bloomberg, GermanEconomic Minister Rainer Bruederle said that the Fed’s “pushtoward easier monetary policy is the “wrong way” to stimulategrowth and may amount to a manipulation of the dollar. Excessive, permanent money creation in my opinion is anindirect manipulation of an exchange rate.” The fact that China was smart enough to peg its currency to the most rapidly devaluing currency in the world is a different story altogether, and merely confirms that they are leap and bounds more sophisticated in their monetary policy than anyone gives them credit for. If Geithner wants to prevent a relative depreciation of the Yuan versus all other currencies in the world (especially the EUR, against which it continues to be in freefall), the answer is simple: stop bloody printing!

And with Tim Geithner present, could the G20 meeting possibly not end up being a total farce? Of course not:

U.S. Treasury Secretary Timothy F. Geithner dismissed prospects of mounting criticism of the Fed’s approach in his press conference after the G-20 meeting yesterday. When asked whether he expected Germany’s criticisms to gain steam, he replied: “I do not.”

In the future, when asked if he ever had problems with being called an idiot and a moron by virtually everyone, Tim Geithner will have the same reply.

And the stand cup comedy continued.

The Treasury chief declined to comment directly on the Fed’s policy, while also saying that major economies like the U.S. need to make growth a top priority. One of the global imbalances is the disparity between rapidly expanding emerging- market economies and too-slow growth in developed nations, he said.

“We are going to continue to try to strengthen the recovery under way so we can dig out of this as quickly as we can,” Geithner said.

In other words, the Fed will celebrate the recovery “under way” by printing another $1.5 trillion in money.

It has gotten so bad that Germany is now directly siding with Brazil which spat in the face of America and decided to not even show up, demonstrating just what it thinks of Geithner’s endless hypocrisy.

Low interest rates and weak recoveries in industrialized economies such as the U.S. have forced investors to flood emerging markets with capital, providing resources for growth yet also threatening to spur inflation, asset bubbles and over- valued exchange rates. Such concerns have prompted economies from South Korea to Brazil to take steps to slow the inflow of speculative cash.

“I’m not a friend of this but I can understand” why Brazil introduced capital controls, Bruederle said.

And just so there is no confusion as to whether Germany’s critcisms will gain steam, below is Zero Hedge’s projection of what the Fed’s balance sheet will soon look like.

 

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by Bananamerican
on Sat, 10/23/2010 – 15:31
#672262

uh, i don’t know if you heard but Geithner is for a strong dollar™….He said so……

Login or register to post comments by MarketTruth
on Sat, 10/23/2010 – 16:29
#672333

And the students in China literally laughed at Geithner right at his face when he discussed America’s “strong dollar” policy. The Chinese, plus Brazil and Germany, are not as stupid as American sheeple.

Login or register to post comments by uno
on Sat, 10/23/2010 – 18:16
#672443

American sheeple is just fat, stupid, greedy and lazy.  I just saw this:

Hawaii has gone farther than most, allowing a family like Gonzales’ to earn up to $59,328 and still get food stamps.

http://www.huffingtonpost.com/2010/10/22/food-stamp-usage-soars-am_n_772287.html

Why are we subsidizing families with that much income.  

Login or register to post comments by MarketTruth
on Sat, 10/23/2010 – 19:47
#672578

Hawaii is in a very bad financial situation far worse than many know. Still, what about those on the mainland of USA who are enjoying 99 weeks of UE benefits?

“And I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property — until their children wake-up homeless on the continent their fathers conquered… The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.” — Thomas Jefferson wrote on May 28, 1816

Login or register to post comments by yipcarl
on Sun, 10/24/2010 – 01:05
#672978

exactly.  and IRONY…..is andrew jackson on a federal reserve note….

Login or register to post comments by dark pools of soros
on Sun, 10/24/2010 – 02:25
#673002

Jefferson also.. the $2 bill

Login or register to post comments by AnAnonymous
on Sun, 10/24/2010 – 02:42
#673010

The Chinese, plus Brazil and Germany, are not as stupid as American sheeple.

 

 

That is your opinion. Mine is that at the exclusion of Germany, none of the quoted countries is advanced in the gang mindset which is the US trademark.

US citizens are not stupid. They are perfectly aware of the US not going against China for currency manipulation.

The US does not oppose currency manipulation. It practises it lavishly. The US opposes rivals in currency manipulation. And an article posted on this site shows China to be the least able in this field.

Typical gang mindset: the US gangs up on the weakest rival in order to gain efficiency.

That is not stupidity. But gang behaviour.

And Geithner is right: Germany’s ‘policy’ wont gain steam. Germany is an oddity on world stage as the integration of the Eastern Germanty is still leaving them at counter cycle.

Anyone applying ‘German recipe’ without being itself at counter-cycle is doomed to fail.

Another typical gang trick: boast about coke dealing being so better than crack dealing, less devasting for society as stuff.

Both Brazil and China have seriously to further their education in the gang mind set instead of laughing off their asses. Because in this department, they are terribly lagging behind.

Login or register to post comments by ISEEIT
on Sat, 10/23/2010 – 18:27
#672460

These fucktards are past pathetic. I understand that they are playing with a well worn ball, but WTF? America has been reduced to a state of absurdity. The left so adored claiming that “the rest of the world hates us”. I’d much rather be hated than laughed at. Ridicule: A potent weapon indeed and in present times a ‘teachable moment’ for the global morons leftist who have so catastrophically failed once again.

Bush was a tool but at least he pulled his shift with some dignity. This shit is embarrassing!

Login or register to post comments by Bananamerican
on Sat, 10/23/2010 – 19:10
#672527

“Bush Pulled His Shift With Some Dignity” is the title of my next rock opera…

Login or register to post comments by vote_libertaria…
on Sat, 10/23/2010 – 15:37
#672267

Sooooo stocks up 3% Monday???

 

You know…..just because.

Login or register to post comments by yipcarl
on Sun, 10/24/2010 – 01:07
#672981

and the vxx down another 3%, that will make i think 37 days,,,errr i lost track>

Login or register to post comments by Commander Cody
on Sat, 10/23/2010 – 15:38
#672271

Germany, Brazil and China are just getting started.  Just wait until their buds show their stones.  Geithner is a lying asshole mouthpiece for the Fed-Wall Street money cartel.

Login or register to post comments by A Man without Q…
on Sun, 10/24/2010 – 05:22
#673063

It looks like, as expected, any agreements were worthless, given Germany’s comments and the following from Japan:

“While several member countries of the G20 hailed the summit in South Korea as a success, Japan immediately broke ranks to declare that, contrary to the spirit of the communique, it would continue to devalue the yen if it saw fit.

Yoshihiko Noda, Japan’s finance minister, said: “A prolonged appreciation in the yen is not good for Japan’s economy. Our stance, that we will take appropriate, bold action if needed, is unchanged.””

 

http://www.telegraph.co.uk/finance/economics/8082701/G20-vows-to-avoid-currency-war.html

 

The US attitude is, as always, they can do as they please and the rest of the world should just suck it up.  Question is, just how fx sensitive are trade balances?  US trade deficits are dominated by oil, cheap crap from China and high end products from Europe.  These are fairly inelastic, in my view, but if crude prices start to rise towards $100, this is going to cause a lot of pain and anger.  The Fed worries that inflation is too low, but doesn’t seem to worry that the method of measuring it is bullshit (no fuel or food and the absurd OER.)  

I wonder with the midterms round the corner, the Fed will under deliver on QE2, causing the markets to drop sharply and therefore showing the new crowd in Washington that they need to let the Fed do as it wants, for the sake of the economy.  The government can then say, we need to make these decisions because of the damage caused under the previous regime etc etc (which is a time honored method for breaking campaign promises.)

 

Let’s just remember, this is not about employment, or growth, or price stability, this is about the Fed saving the banks.  Solvency is measured in nominal terms, but mark-to-fantasy can only continue until the cash runs out.  Interest accrued is not the same as interest received and add to the mix the large rise in mortgage put backs and you have a banking system in worse shape than in 2008.  2008 was a crisis of liquidity, which the Fed can always resolve, but 2010/ 2011 is going to be a crisis of solvency, and in the absence of real growth only the right sort of inflation can fix it.

Login or register to post comments by huntergvl
on Sun, 10/24/2010 – 06:40
#673095

“I wonder with the midterms round the corner, the Fed will under deliver on QE2, causing the markets to drop sharply and therefore showing the new crowd in Washington that they need to let the Fed do as it wants, for the sake of the economy.”

I have been thinking the same thing, ‘A Man.’ The FED can just as easily engineer a market crash (even easier) as manipulate the markets up for the last 18 months. The only humans left in the stock market at this point are mostly retail investors (the whales are still in equities, but the ‘right’ equities). By collapsing the market say 20% and revisiting the uncertainties of say, ’87, congress will be able to pass any legislation it wishes as America panics. A crash would lend a hand to the republicans as well since they are ‘seen’ as the conservative fiscal party (all nonsense of course, but the propaganda still works until it doesn’t).

QE2 is already in the books and another banking meltdown is imminent. This won’t be like the first TBTF disaster when Paulson made taxpayers bail out the banks. Now that the likes of PIMCO are suing B of A, it’s a dogfight between the big guns and this time, TBTF won’t work. It’s not taxpayers on the hook this time, it’s PIMCO, and since they are ‘players,’ B of A is already toast. PIMCO wants their money and B of A doesn’t have enough for them or all the players coming after them…..Counterparty risk finally rises up out of the muck after 3 years of bullshit to collapse what was a ‘perceived’ orderly decline.

Login or register to post comments by bank guy in Brussels
on Sat, 10/23/2010 – 15:44
#672277

Tim Geithner and money bunny Maria Bartiromo on YouTube:

« Geithner lies for 4 minutes straight about US Dollar »

 

Login or register to post comments by uno
on Sat, 10/23/2010 – 18:39
#672480

Bunny?  Bride of Frankenstein is more like it.  

Login or register to post comments by ebworthen
on Sat, 10/23/2010 – 15:51
#672282

Timmy says:

 “Stop printing money?

No, no, it can’t be that simple.

There must be a formula or algorithm somewhere…

…the banks need the liquidity…we must…have…debt…to solve…a debt…crisis…

…must…be…a more…complicated…answer…

…Chinese smarter than me?…

…not…possible…

…does…not…compute…

…Daisy…Daisy…”

Login or register to post comments by Milestones
on Sat, 10/23/2010 – 16:46
#672348

Luv it HAL.  Milestones

Login or register to post comments by Sean7k
on Sat, 10/23/2010 – 18:32
#672466

Repeated citations by world finance leaders calling Timmy a moron never get old, do they? Love it Hal. +100

Login or register to post comments by LowProfile
on Sat, 10/23/2010 – 21:49
#672739

“the answer is simple: stop bloody printing!”

Not bloody likely…

Login or register to post comments by sushi
on Sat, 10/23/2010 – 15:52
#672284

Anyone with any projections of what the Nov 3rd printing will do to the dollar. Down yes, but how much?

Login or register to post comments by TheGreatPonzi
on Sat, 10/23/2010 – 15:59
#672290

If the FOMC meeting gives birth to a less-than-expected QE2 (let’s say, 500 billion dollars or less), the dollar may actually strengthen, before replunging 6 months later. If it’s superior to 500 billion, you may see a 20% drop in the dollar value (and a consequent up in the gold value). It the QE2 is absolutely desperate, such as 1.5 trillion and more, then you could witness the immediate extermination of the US dollar on Forex, and a start of hyperinflation in less than 3 months.

Login or register to post comments by LeBalance
on Sat, 10/23/2010 – 19:13
#672533

Or (just maybe) they will pull out all the stops:

 

Login or register to post comments by itiswhatitis
on Sat, 10/23/2010 – 15:52
#672285

So the rest of the world starts to call bullshit on the Fed’s actions . . .  what happens from here:

 

1) Fed says fuck you and prints anyway.  Currency wars get worse as does the depression.

2) Fed holds off printing for now, dollar strengthens and the market tanks and the depression continues.

Meanwhile we still have:

HFT’s continuing to make this market a farce until it implodes on itself.

“Fraudclosure” prolongs the housing pain for several more years.

Insolvent banks continue to hide behind TBTF policies of a corrupt government.

Interest rates at zero as far as the eye can see continuing to cause more and more pain to the average retiree who can’t stomach the insane risk everywhere else.

 

Login or register to post comments by sushi
on Sat, 10/23/2010 – 16:00
#672292

There are reports the French and Chinese have had meetings in regard to some form of replacement for the present world reserve currency. It is rumoured to be based on a basket of inputs: pm’s, energy, Russian virgins and other rare items.

I think you get the ROW on one side and the US on the other. Places such as Zimbabwe would likely remain allied to the US as they share certain similarities but other than that I think the world is going to be staring at the greatest cleavage since the height of the cold war.

Login or register to post comments by DCon
on Sat, 10/23/2010 – 16:08
#672307

what’s the ratio of gold/silver to Russian virgins?

Login or register to post comments by decon
on Sat, 10/23/2010 – 16:19
#672318

DCon,

You’re pushing the envelope with your handle bub!!

 

As for the gold/russian virgin ratio, well, the math lesson at the end of the comments should tell you what happens when you divide by zero.

Login or register to post comments by knukles
on Sat, 10/23/2010 – 17:26
#672398

Wee ze French do not appreciate ze reference to ze Russkins for zey are not part of ze deescusshun wes ze Chineses.  Aind let me teel you estupide Americaines ze propair exchage raite ess how manee bars of cheese smell soap to zee periodic baths can ze Chineeses maike for our countree. 

Pffhhhhhht!  

Login or register to post comments by LeBalance
on Sat, 10/23/2010 – 19:17
#672543

Go away or I shall taunt you a second time!

Login or register to post comments by bronzie
on Sat, 10/23/2010 – 22:09
#672764

classic Monty Python

US monetary leaders: “We have been charged by God with a sacred Quest”

and the whole world laughs in their faces …

Login or register to post comments by tmosley
on Sat, 10/23/2010 – 23:04
#672838

The the Tea Party is the Black Night.

Of course, the movement they start is the police who come to interrupt the final battle at the end of the movie.

Login or register to post comments by equity_momo
on Sat, 10/23/2010 – 17:55
#672425

Look , the dollar debauchery is just that , but much like the decline of the Roman Empire , there is no real alternative as a Reserve Currency , so the French and Chinese can really go piss all over each others face , they can not formulate a credible replacement to the dollar.

Its dollars and gold , the military and free money. Everyone else is just pretending.

Login or register to post comments by Calculated_Risk
on Sat, 10/23/2010 – 20:34
#672632

so the French and Chinese can really go piss all over each others face

 

 

is there a website for this? you know, for research… for a friend…. ahem.. nevermind….

Login or register to post comments by sushi
on Sat, 10/23/2010 – 15:54
#672286

Follow up:

How long before the dollar drop shows up in US input prices and begins to drive cost-push inflation?

How many months after that before the Pitchfork Army marches on Washington?

Login or register to post comments by Robert J Moran
on Sat, 10/23/2010 – 16:02
#672297

Even Chinese university students laugh at Mr. Geithner!

Login or register to post comments by weinerdog43
on Sat, 10/23/2010 – 23:26
#672861

Woopee.  American students laugh at premier Wee wee.

Login or register to post comments by MeTarzanUjane
on Sat, 10/23/2010 – 16:04
#672299

Well we all know about the Germans. Didn’t their concentration camps persecute the very people who run the shadow government/economy here in the US?

The Germans are biased and cannot be trusted, ask Schindler he’ll tell you.

Login or register to post comments by desgust
on Sat, 10/23/2010 – 18:01
#672430

Yes, Tarzan, you apeshit, your right. Go back to your apes!

Login or register to post comments by zaknick
on Sat, 10/23/2010 – 18:13
#672440

Actually, Hitler was financed by the same interests who run the US. I think the joo thing had the creation of the zionist entity as its purpose. I can’t explain it any other way because it is true that Rothschild financed Rockefeller’s little fascist clan here in the US and Rockefeller received weekly reports from Mengele’s overseer.

 

Google Rockefeller and Mengele if you don’t believe me. Also see Edwin Black’s research on this and on IBM actually databasing the extermination through its EU subsidiaries.

Here’s a pic of Prescott Bush (a staunch supporter of eugenics) and “Lord” Rothschild:

 

http://www.scribd.com/full/38660644?access_key=key-n9sgu6j4k3h8ftj9w8i

 

Remember, Bush, Rockefeller, Carnegie, Kellogg, they are the ones behind this:

 

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Carrie Buck v. James Hendren Bell, Superintendent of State Colony
for Epileptics and Feeble Minded
Citations 274 U.S. 200 (more)
47 S. Ct. 584; 71 L. Ed. 1000

The ruling was written by Justice Oliver Wendell Holmes, Jr. In
support of his argument that the interest of the states in a “pure”
gene pool outweighed the interest of individuals in their bodily
integrity, he argued: We have seen more than once that the
public welfare may call upon the best citizens for their lives. It
would be strange if it could not call upon those who already sap
the strength of the State for these lesser sacrifices, often not
felt to be such by those concerned, in order to prevent our being
swamped with incompetence. It is better for all the world, if
instead of waiting to execute degenerate offspring for crime, or to
let them starve for their imbecility, society can prevent those who
are manifestly unfit from continuing their kind. The principle that
sustains compulsory vaccination is broad enough to cover cutting
the Fallopian tubes.

Holmes concluded his argument with the infamous phrase “Three
generations of imbeciles are enough”.

 

They’ve replaced it with the new Jim Crowe, the “war on drugs”, among other ethnic cleansing, genocidal schemes:

Population Task Force

Among Bush’s most important contributions to the neo-Malthusian cause while
in Congress was his role in the Republican Task Force on Earth Resources
and Population. The task force, which Bush helped found and then chaired,
churned out a steady stream of propaganda claiming that the world was
already seriously overpopulated; that there was a fixed limit to natural
resources and that this limit was rapidly being reached; and that the
environment and natural species were being sacrificed to human progress.
Bush’s task force sought to accredit the idea that the human race was being
“down bred,” or reduced in genetic qualities by the population growth among
blacks and other non-white and hence allegedly inferior races at a time
when the Anglo-Saxons were hardly able to prevent their numbers from
shrinking.
Comprised of over 20 Republican Congressmen, Bush’s Task Force was a kind
of Malthusian vanguard organization which heard testimony from assorted
“race scientists,” sponsored legislation and otherwise propagandized the
zero-growth outlook. In its 50-odd hearings during these years, the task
force provided a public forum to nearly every well-known zero-growth
fanatic, from Paul Ehrlich, founder of Zero Population Growth (ZPG), to
race scientist William Shockley, to the key zero-growth advocates infesting
the federal bureaucracy.
Giving a prestigious congressional platform to a discredited racist
charlatan like William Shockley in the year after the assassination of Dr.
Martin Luther King, points up the arrogance of Bush’s commitment to
eugenics. Shockley, like his co-thinker Arthur Jensen, had caused a furor
during the 1960s by advancing his thesis, already repeatedly disproven,
that blacks were genetically inferior to whites in cognitive faculties and
intelligence. In the same year in which Bush invited him to appear before
the GOP task force, Shockley had written: “Our nobly intended welfare
programs may be encouraging dysgenics — retrogressive evolution through
disproportionate reproduction of the genetically disadvantaged…. We fear
that ‘fatuous beliefs’ in the power of welfare money, unaided by eugenic
foresight, may contribute to a decline of human quality for all segments of
society.”

During hearings on the Social Security amendments, Bush and witness
Alan Guttmacher had the following colloquy: Bush: Is there any
[opposition to Planned Parenthood] from any other organizations or
groups, civil rights groups?
Guttmacher: We do have problems. We are in a sensitive area in
regard particularly to the Negro. There are some elements in the
Negro group that feel we are trying to keep down the numbers. We are
very sensitive to this. We have a community relations department
headed by a most capable Negro social worker to try to handle that
part of the problem. This does, of course, cause us a good bit of
concern.
Bush: I appreciate that. For the record, I would like to say I am
1,000 percent in accord with the goals of your organization. I
think perhaps more than any other type of organization you can do
more in the field of poverty and mental health and everything else
than any other group that I can think of. I commend you.

Which is why domestically these are the results of his, and the
other wealthy, fascist interests at the CIA’s, “drug war”:

http://www.leap.cc/cms/index.php?name=Web_Links&l_op=visit&lid=152

Login or register to post comments by StychoKiller
on Sat, 10/23/2010 – 19:58
#672589

Holmes concluded his argument with the infamous phrase “Three
generations of imbeciles are enough”

Maybe so, but WHO keeps electing them to high office??

Login or register to post comments by 66Sexy
on Sun, 10/24/2010 – 03:19
#673025

9/11 was an inside joo

Login or register to post comments by Waterfallsparkles
on Sat, 10/23/2010 – 16:13
#672303

I have to say that I have a lot of respect for China.  I think the moves they have made are a lot smarter than our Government.  They apparently saw that Bernankie was going to print to oblivion.  They stockpiled Gold, Copper, and other precious metals.  They protected themselves from Bernankie.  They tie their currency to our Dollar so that no matter how much Bernankie prints they stay competitive.  What is wrong with that?  They are building while materials are inexpensive and accumulating housing at todays dollars.  What is wrong with that?  If materials go up so will the cost to build housing.  So they are locking in their construction costs today.  They are buying our Farm Land.  It would be a tragedy if in fact that the Chinese own our crop production and ship it all over seas.

I dislike saying it but the Chinese are very smart and have in effect outsmarted our Fed, our Government.  They will soon be able to purchase most of American Companies and Real Estate for pennies on the Dollar.  Which will give them a foot hold into America.  After that maybe some time in the future they will Own America lock stock and barrel and we will be Serfs on our own land, all without one gunshot.

Login or register to post comments by AnAnonymous
on Sun, 10/24/2010 – 02:54
#673015

What is wrong with that?  They are building while materials are inexpensive and accumulating housing at todays dollars.  What is wrong with that?

 

What’s wrong with that? They openly show they do not believe in the official propaganda mainly led by capistalist forces on malinvestment and stuff like that.

They openly show that in a near future, a strong scarcity issue might appear.

When propaganda is striving in one direction, propaganda does not like anything that exposes it.

Notice the US acted the same. The subprime crisis was simply an elaborated means of hoarding houses on the US territory while construction materials were still cheap because abundant.

The US demand on housing matters heavily: purchasing your private house is part of the US dream. The US has to deliver on this one. It appears that the demand for houses might come from 10 million household whose work output (revenues) should not enable them to buy a house.

The US stockpiled on houses in order to meet this near to come demand.

Nothing different from the Chinese. So the Chinese appear as rivals to the US effort.

That is what is wrong.

Login or register to post comments by Cojones
on Sat, 10/23/2010 – 16:16
#672314

Thanks to Julian and his buddies we’ll see a big boom in the MIC, so this currency war will blow over in a couple of weeks. The focus will shift from Timmah and Ben towards  Gates. http://www.thedailybell.com/1246/Comes-a-Blond-Stranger.html

Login or register to post comments by zaknick
on Sat, 10/23/2010 – 18:24
#672455

Where is the smoking gun? Julian Assange is a plant is the premise of the cartoonish conjecture at that site. What’s missing is the why. What has he released that serves the interests of the bankster/mic/msm fascist complex?

 

Opinion are like you know what …. bla bla bla.

Login or register to post comments by tmosley
on Sat, 10/23/2010 – 20:19
#672611

Exactly.  Claiming that the CIA would release this kind of information is just stupid.  They have NOTHING to gain from this.  R and D are equally liable, so there is no political benefit.  Military culture has full control of the sentiment among civilians in the US (witness no-one spitting on returning soldiers like they did in the 60’s–it is rare for them to be called baby-killers as they were back then).  People even beleive that they are somehow defending our freedoms, even as the dragging war on “terror” is stripping us of them.

National madness.

Login or register to post comments by Comrade de Chaos
on Sat, 10/23/2010 – 16:19
#672316

While I do think the printing is absolutely moronic at this point idea, not doing anything about the Chinese peg will only bring us to the square one, China 15 vs US 0. 

 

Why 15? because it’s been over 15 years (or more) of the official Chinese policy to take onto the path of the export oriented growth model. And while usually the world trade is not the zero sum game, in this case it seems it is, the US = 0. 

Login or register to post comments by tom
on Sat, 10/23/2010 – 16:26
#672329

How did Captain Obvious get into a G-20 meeting? This is a major security breach.

Login or register to post comments by Fidel Sarcastro
on Sat, 10/23/2010 – 16:49
#672351

Bob Pisani was there?

Login or register to post comments by knukles
on Sat, 10/23/2010 – 17:27
#672401

Ben got him in.  Wanted someone to unknowingly take the ridicule.

Login or register to post comments by Waterfallsparkles
on Sat, 10/23/2010 – 16:31
#672336

The FED is abusing their money printing ability as the World Currency.  The actions they are taking is hurting Countries all around the World.  They are Printing Trillions causing Millions to starve thru higher commodity prices.  They are throwing Trillions at the Banks so the can pay Billions in Bonuses while the majority of Americans starve, cannot heat their homes and lose their homes to the Banks. Thru higher commodities, food prices and oil the World over. 

No wonder the Foreign Government are angry at Geitner, Bernankie and the FED.  They are causing a Global Disaster.

Login or register to post comments by cxl9
on Sat, 10/23/2010 – 16:54
#672356

the majority of Americans starve, cannot heat their homes and lose their homes to the Banks.

1. The majority of Americans are starving? Do you have a good cite for that?

2. If they’re losing their homes, then they don’t need to heat them. It’s one or the other.

3. Do you really believe the things you say?

 

Login or register to post comments by Stuck on Zero
on Sat, 10/23/2010 – 16:31
#672339

Question for the Author … if China’s currency is tied to the dollar and their rate of inflation is 14% what is the rate of inflation in the U.S.? 

 

Login or register to post comments by Mentaliusanything
on Sat, 10/23/2010 – 18:00
#672428

Question for the Author…. If China’s GDP is 9% and their inflation is 14% …are they going in reverse?

Login or register to post comments by macholatte
on Sat, 10/23/2010 – 16:35
#672342

 Tim G = Puppet

 

Three months after a summit in New York state last July, Soros pledged $50 million to INET, which promises “to promote changes in economic theory and practice” by “providing the proper guidance” to “the next generation.” 

 

Despite its name, its philosophy is nearly a century old. The group blames the economic crisis on free market capitalism and promotes a return to the theories of John Maynard Keynes. INET hosted its inaugural conference April 8-10 at King’s College, Keynes’ school, and called on economists to “apply the same Keynesian courage and innovation” to ending the worldwide recession.

 

 The challenge ahead is to manage a peaceful decline of the west while rescuing as many of the west’s liberal political and economic values as possible…We need new global governance which can both manage the ascent of China, India, Russia, Brazil as well as the relative decline of the United States and Europe. Europe and the US must concentrate on shaping this new global governance and enshrine its progressive values within it, while they still have some power to do so.

George Soros’ New Plan for Globalism and Crony Capitalism 7/12/10

http://nlpc.org/stories/2010/07/09/george-soros-new-plan-globalism-and-crony-capitalism

 

Login or register to post comments by tewkatz
on Sat, 10/23/2010 – 16:49
#672350

Why doesn’t the Euro/pound/etc. peg themselves to the dollar too?  I mean, pick a ratio that works for each country and maintain that ratio…

Login or register to post comments by cxl9
on Sat, 10/23/2010 – 16:59
#672365

I think they tried that with Bretton Woods.

Eventually the imbalances kill you…

Login or register to post comments by Mr.Kowalski
on Sat, 10/23/2010 – 16:57
#672362

Herr Bruederle might soon have bigger fish to fry than TurboTimmy:http://notayesmanseconomics.wordpress.com/2010/10/22/problems-mount-again-for-the-public-finances-of-portugal-ireland-spain-and-greece/  

Login or register to post comments by Lapri
on Sat, 10/23/2010 – 17:05
#672372

Chinese will buy their debts (not sure about Irish one) just like they are buying Greek debt, dumping US$ for Euro to buy them at a discount. And these bonds will be guaranteed by none other than Germany.

Login or register to post comments by trav7777
on Sat, 10/23/2010 – 19:45
#672573

LOLZ.

You know what this is?  It’s the SAME FUCKING mercantilist recycling game that china has done with the USD for decades.

Just buy all the debt you can find, recycle NO surpluses with actual trade, just buy the currency up by funding the deficits and bonds.

China wants to cheapen WRT the Euro now and fuck them in the ass too.  China intends to intentionally bankrupt all its potential trading partners…for what???  So they can produce and sell then to WHOM?

We’re not going to give our countries over to these Go playing slope morons on account of the paper they own!  We’re going to do what the British did in the 19th century and that’s sail our roundeye navies and go shove opium up their asses again.

Login or register to post comments by Milestones
on Sat, 10/23/2010 – 17:06
#672373

Many years ago I read “The Decline of the West” and consider it one of the more important books I have enjoyed but for the life of me I cannot recall Spengler ever say that the decline and demise of the west was from sheer unadulterated stupidity.

Wrong again!!   Milestones  

Login or register to post comments by Bill Lumbergh
on Sat, 10/23/2010 – 17:08
#672378

Geithner, Summers, and Bernanke…the Economic Dream Team of the millennium.

Login or register to post comments by lizzy36
on Sat, 10/23/2010 – 17:21
#672393

tiny tim, jabba the hut, and ben shalom……..living the dream.

Login or register to post comments by treemagnet
on Sat, 10/23/2010 – 17:43
#672421

Its a bluff – POMO is QE2.0 

I know, I know, I’ve said this before.  On a lighter note, Timothy and Benjamin…..

how ’bout….Timamin, or Benothy or Timjamin.  I prefer Timjamin – sounds like a spice or seasoning, lets vote!  TD, can you set up a vote counter thingy?

Login or register to post comments by Rasna
on Sat, 10/23/2010 – 18:05
#672423

Given the circumstances and given the fact that QE has not provided the bump in GDP and unemployment reduction, adding more QE to the mix at this point makes no sense… This is the only round that the Fed has in the chamber that can make any difference at the right time and for the right set of circumstances…

Now, my ant brain main not be able to take into account the nuances and subtleties of world finances, that the mega-brains in the Treasury and Fed can, but is there the slightest chance that the whole QE thing is a giant political head fake?  Goosing the market up to the highwater mark of ’08 and then letting the thing plunge and save the QE bullet until later?  Orwellian double speak – Geitner: Strong $… RumplestilBEN: Spinning more and more dollars out of thin air (saying straw would do a disservice to straw).

I’ve seen analysis, as most of you have that $1.5T of new QE gets us a few basis point bump on GDP, and maybe a little help on unemployment (U6 will still be horrendous), so where’s the upside?  IF QE fails down the road, what’s next?  Add to that the fauxclosure crisis and the potential of massive putbacks, then it seems to me that the Fed efforts are misplaced, and that they are solving the wrong problem… If they take the blinders off, and start working to facillitate job growth, revitalizing our manufacturing and forcing fiscal responsibility on the part of Congress then maybe we start getting somewhere…

It seems that the Fed borders on becomming irrelevant if they push QE2 and it fails.  Coupled with the corruption and fraud that is inherent in the financial markets, It was a breath of fresh air to hear Chris Whalen’s interview over at King World News, http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/10/23_Prem…

The Fed needs to be abolished, corporations need to lose their “personnood”, TBTF need to be allowed to fail, The SEC and CFTC need to be cleaned out and the reset button pushed with better regulators, The Justices Dept. needs to get busy, and most incumbents need to be voted out of office…

I almost forgot… PEOPLE NEED TO GO TO JAIL… Not just 1-2 minor players, but a lot of people, big fish and small frye… That will begin to restore faith in the system.

 

Login or register to post comments by prophet
on Sat, 10/23/2010 – 17:55
#672426

Strong dollar = we don’t plan on outright devaluation or default.

Login or register to post comments by Irwin Fletcher
on Sat, 10/23/2010 – 18:19
#672445

Yo Timmy, there’s a word for “growing” a small minority of a population (your bankster co-conspirators) at the expense of the rest: theft. In biology there’s a word for it too: cancer. Hopefully, one day an angry ZH reader will find you alone in a hot tub.

Login or register to post comments by f16hoser
on Sat, 10/23/2010 – 18:26
#672458

Tim, I’ll make this reallllllllly easy for you, click HERE: http://maxkeiser.com/2010/10/23/michael-hudson-debt-jubilee-and-debt-parasites/

Then, stay with me, click the “Play” button. Questions?????

 

Hoser

Login or register to post comments by f16hoser
on Sat, 10/23/2010 – 18:31
#672464

Hey Tim, you guys gave away all our bullets to China via Wall Mart

 

Hoser

Login or register to post comments by mcguire
on Sat, 10/23/2010 – 18:53
#672494

HELLO!!!  did anybody else get a message in their brokerage accounts like this??:

On Saturday, October 23, 2010, from 5:00 p.m. ET until 9:00 p.m. ET, X Investments, LLC will participate in an industry-wide disaster recovery exercise which may result in the brokerage website being unavailable for all or part of the event. Please contact us to place transactions if you are unable to access your account online during this exercise. We apologize for any inconvenience and we thank you for your patience.”

 

anybody?  beuler??

Login or register to post comments by f16hoser
on Sat, 10/23/2010 – 20:43
#672641

Not from TDA.

 

Hoser

Login or register to post comments by Minion
on Sat, 10/23/2010 – 21:01
#672667

Nothing from Tradeking.

Login or register to post comments by trav7777
on Sat, 10/23/2010 – 19:41
#672565

WTF is everyone’s problem with this?

The dollar NEEDS TO DEVALUE.  The goddamned trade imbalances have made dollar devaluation GROSSLY OVERDUE.

Fuck the ROW; what the fuck does Germany think, that they can have a PERPETUALLY weak currency and have export surpluses FOREVER?  JFC, the math does NOT WORK.

If the French and Chinks and the rest go to a basket commodity currency, there will be a TOTAL crash in China, which DEPENDS upon currency devaluation to feed export growth.  WTF?  Commodity basket currency will FORCE trade balance!  And neither China nor Germany nor Brazil WANTS THIS.

They WANT the goddamned US to go into massive debt, they NEED IT for their own stupid export/jobs sectors.  They knew all a’goddamned-long that we would NEVER be able to actually REPAY in today’s dollars!

These nations NOW acting as if this shit is some sort of a surprise is the most hypocritical and laughable bullshit EVER.  Germany and China must be forced at some point to ACCEPT trade balance and the long overdue devaluation of the dollar and the loss of their #1 export markets.  Either that or DO NOT COMPLAIN about the debts we rack up.

Don’t fucking TAKE our productive capacity, make it your own, then fucking vendor finance in a circle jerk and then expect someone with NO INCOME from which you REFUSE to buy anything ANYWAY to repay you!

This is like china prior to the Opium Wars; they just wanted all the silver in the world and the Emperor REFUSED to allow bilateral trade.  It ended in WAR; that’s how this shit ends up.

China refuses to buy anything from us, refuses to open its markets, Brazil is massively protective of domestic production to the point of having insane tariffs on ANYTHING imported, how the fuck do THEY EXPECT us to repay if they will not BUY?

They have FINANCED a customer that they themselves BANKRUPTED.  We should have cut China loose decades ago, but everyone in this clusterfuck went in with eyes wide open.  Listen, honeys, don’t GO TO A GANGBANG and then come out crying about how you just got fucked!

Login or register to post comments by Minion
on Sat, 10/23/2010 – 21:04
#672673

The irony of it all is that mercantilist economies are accepting US debt as payment for their trade surplusses…… which is a terrible long term investment (pretty good in the 80s, however 🙂

It all balances out, but the real question in my mind is what will the banksters do to get paid……  when they own all the real estate, governments, farm land, and (possibly) militaries, is one world system too far off? 

Login or register to post comments by PeterSchump
on Sat, 10/23/2010 – 20:02
#672593

Germany the country of fiscal responsibility.  Times are a changin’

Login or register to post comments by gs_runsthiscountry
on Sat, 10/23/2010 – 20:36
#672634

I just want to know, can we call out Germany for having their pimp Bill Gross influence policy?

Good grief…..Munich, Germany=Allianz=Pimco=Bill Gross= and next Treasury Secretary?

Login or register to post comments by Bose Einstein OracIe
on Sat, 10/23/2010 – 20:58
#672661

+1 SPY NOV CALL @ 0

Login or register to post comments by buzzsaw99
on Sat, 10/23/2010 – 21:02
#672669

Piss on foreigners. The only reason they’re so bitchy is because usa dollar devaluation makes it harder for them to export and thus collect even more clownbux. The criminal usa banking cartel is giving them just what they deserve. It sucks for j6p tho.

Login or register to post comments by Paul Bogdanich
on Sat, 10/23/2010 – 22:58
#672830

The answer is simple he say, stop bloody printing.  If we did that a couple of things would have to happen.  Cuts in Defense by roughly 50%.  Social Security present payments curtailed at least 20%.  Medicare curtailed by at least 30%.  And a refusal to pay market interest rates on Treasury obligations.  Here’s your interest rate take it or leave it.  If we did all those things then we might, might be able to pay our bills out of current income.  With this political leadership and this population what are the chances of even beginning to move in that directon?  The main problem in the US is the media disinforation and a truly ignorant population.  Very, very stupid people indeed.    

Login or register to post comments by tony bonn
on Sat, 10/23/2010 – 23:29
#672866

“Tim Geithner on his endless bullshit.”

if tim geithner didn’t have endless bullshit he would vanish into thin air.

in the era of floating exchange rates no currency should be pegged…doing so creates price warps…the signal necessary to reverse course is muffled….a rising yuan would signal to irresponsible americans that the import party had gone on too long and it was time change direction….

but that hasn’t happened….health cannot return to the usa economy or dollar until the privations of irresponsibility come home to roost….so far that hasn’t happened.

as much as i bash the usa i have no love at all for the chicoms…however, as as creditors, they have a right to be pissed about our currency debasement.

 

Login or register to post comments by TonyV
on Sat, 10/23/2010 – 23:40
#672881

U.S. Treasury Secretary Timothy F. Geithner dismissed prospects of mounting criticism of the Fed’s approach in his press conference after the G-20 meeting yesterday. When asked whether he expected Germany’s criticisms to gain steam, he replied: “I do not.”

Whoever asked the question is the idiot here. What exactly did he expect Geithner to say?

Login or register to post comments by Pillage
on Sat, 10/23/2010 – 23:48
#672891

According to Bullard, CNBC’s go to QE2 pumpaholic, 100 billion upfront and re-evaluations for further purchases as data comes in……come 2011 Bullard is no longer a voting member and neither is uber dove Rosengren, unfortunately we lose Hoenig but gain hawks Fisher, Plosser, and Kocherlakota.

4 voting members change in ’11

In ’10 there are 3 doves and 1 hawk

In ’11 there will be 4 hawks and 1 dove (evans)

If the vote isn’t for a set amount over a certain time and decisions to buy more go like Bullard suggest by votes for more bond buys as data comes in then by ’11 the case becomes less clear for more QE as more hawks enter

Login or register to post comments by eigenvalue
on Sat, 10/23/2010 – 23:56
#672901

Then you mean you expect on Nov 3, the Fed will give a larger QE2 than the market expects because of the number of doves that can vote now?

Login or register to post comments by Pillage
on Sun, 10/24/2010 – 00:52
#672968

I expect them to do what the most vocal fed official says, Bullard:

1. Nothing, GDP comes in bte or inline

2. 100 billion upfront and votes going forward to see if more is done

 

It’s all mind games, remember Larry Summers on the day or two before an unemployment report saying how bad it would be and as turns out it wasn’t bad. The Fed likes to voice it’s intentions though so this may be the plan as Bullard has said it multiple times as well as the WSJ’s JON HILSENRATH .

Is the market going to be happy with 100 now and maybe more later?

Login or register to post comments by eigenvalue
on Sun, 10/24/2010 – 01:03
#672977

Heard that despite of the voting process, Ben Bernanke still has the dominant role on the final decision. 

Some say that 500 billion QE2 has already been priced in. If that’s a ” 100 billion upfront and votes going forward to see if more is done” package, guess the market will tank.

This week PMs has already been beaten down due to China’s interest hike and maybe Bullard’s remarks. 😦

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