How About A Glass Of Shut The Hell Up

I am tired of listening to the Chinese lecturing the US about being responsible. China acts as if buying treasuries is some sort of act of benevolence. The Chinese buy treasuries because they want to keep the yuan artificially low. This has the effect of making their labor cheaper and makes China more competitive. It also has the effect of making US labor less competitive. Cheap credit from China had the knock on effect of helping fuel the credit bubble. After helping to create the problem, they now want to lecture us as well?

1 comment:

Anonymous said...

It's all rhetoric.  The s&p500 is really a chinese index now.  The divergence between the A shares and s&p is that  US corporate profits are largelyl derived from US exports and sales to chinese consumers while the chinese markets reflect chinese exports to an already dead US consumer.  I believe a manipulated weak dollar continues to bid the s&p further and is another form of quantitative easing.