Seen at though Mr Bernanke still hasnt gone to the barber and done anything about that weird looking haircut of his. (shouldnt he just shave it all off) Mr Bernake testifies tomorrow about his actions to the senate. I know alot of people out there think watching Oprah, American Idol and staring at themselves in the shopfront windows seem more important, but I guess we could stop for a minute and talk about what matters most.
He has to get up infront of congress tomorrow and explain why he is a great chairman, and why he took that actions that he did. I think the guys in the sentate should introduce Bernanke to his seat by using this video as an introduction. Feel free to watch.
Remember we have shown this video here before, if you have seen it, you will realise he saw no crisis coming, employment getting better and House prices increasing over the mid to longterm. Ahhhh I will have what he is smoking!!
Anyway, would love for you to show your loyal views on what you think of Bernanke as the federal reserve chairman. Do you think he has done a good job? Or is he just yanking the chain and trying to keep everyone cool? I will let you be the judge?
Some very interesting news over the wires this morning. China, who are pretty smart, are starting to see what is happening to the US dollar.
These guys are surely on edge, and I bet they cringe each day as they bring up a chart of the US dollar. WHY? Well they know that the US dollar is in trouble. Experience teaches them a hard lesson, and they went through the same thing back in the early 1990’s.
But it was interesting to see the dollar drop after China’s central bank reiterated a call for a worldwide currency. Remember years ago when those conspiracy nuts were calling for a one world currency and a New World Order. These people were called insane, or psychopathically unstable conspiracy nutters. Forward to 2009 and the credit crisis looms on. The beginning stages of high regulation of the banking and financial system is coming about, and the US dollar and other currencies are in a lot of trouble. The perfect recipe to introduce a some of these massive changes.
Anyway…
The chinese are very smart. They think differently than alot of countries, not only that, they own alot of US dollars. They know it’s doomed!!! They are angry at the moment, and here is why!
1) The massive amount of US dollars they hold is devaluing as the price of the US dollar falls!
2) If they decided to sell a large portion or their (USD) holdings it would cause a panicked sell off by other countries further collapsing the dollar before they could exit their entire position.
So yes, they are stuck between a rock and hard place right now. It’s like one of those catch 22 situations.
China is likely to emphasize that it wants to see changes take place over the long run in an effort to shield the dollar in the short term.
But the push is nonetheless likely to weigh on the greenback and could have a significant impact on currency markets as traders attempt to gauge the potential reduction of the dollar’s role and what currencies will take its place.
China right now, must feel like they are screaming at a misbehaving boy who has his fingers in his ears, and rolling his eyes back.
Many years ago When Franklin D. Roosevelt was president of the USA he made a very famous quote. “But while they prate of economic laws, men and women are starving. We must lay hold of the fact that economic laws are not made by nature. They are made by human beings.”
It basically means that Government (human beings) are the ones making laws regarding the economy. Because the economy cannot simply run by itself. It’s the laws, rules, constraints, that fine tunes the engine in order to make it work properly. If something goes wrong then it is not these laws you must blame but the people that are these ‘law makers’.
Recently this engine (the economy) has broken down, and if we do have a situation where men and women have no money or no food who do you think they are going to blame first. I think the government is starting to see this and are panicking and have ‘plan B’ ready and will change many laws and restrictions regarding their privileges and authority in order to have more control over many situations regarding the economy.
There is one thing for certain, “Change is coming“…VERY SOON and in a big way. I would be lying to you if I gave you the normal pitch that I keep seeing on the 6 o’clock news. They keep sugar coating this credit crisis like they have miraculously found a lamp, rubbed it got 3 wishes from the genie that popped out.
The problem is, there is no LAMP, and there is no GENIE!
The video below explains this more in detail…
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