Forty-thousand new layoffs were announced yesterday yet Obama is wasting time trying to forge a bipartisan consensus on the stimulus. Democrats have the votes to pass the measure now, but the president prefers to dawdle and try to placate resistant Republicans for what kind of long-term political support, I do not know. Meanwhile, American families suffer.
Is it possible to see China not as a separate entity from the US economy but an integral part ?
ReplyDeleteIf yes, then assume that the Yuan's false pegging is a component of our currency and that we have relied on that false pegging - DESPITE ALL hoop-la otherwise - for cheap goods, somethings cheaper than what Kmart or Gemco offered in the early 80's,
for a complete halt on inflation of consumer goods.
Further that this false pegging is much alike to Argentina's peso to dollar peg - which was aimed at halting rapid hyper-inflation and deflation cycles.
So when anyone complains about the Yuan - it is either a diversionary tactic or really a reverse psychological play of irony - that of confirming that we really need the peg !
Last October, after having talked with my Bank of America branch manager while mentioning Argentina - he became very focused and actually answered my questions while providing me with a muted voice that totally revealed that he was briefed on possible shut downs :
1. safety deposit boxes will not be available to access since the bank will be closed.
2. FDIC information must be completely filled out and the main names on accounts must be unique and not duplicated.
Anyway, any posts on where the stimulus dough is going ?