03 December 2010

Helo Ben Says "Dollar System Flawed" = "Say Good Bye to Soverignty"

Even though Thanksgiving was last week, we find something to be thankful for every day of the week.  Today, I say that I am thankful for the internet (for as long as it remains free of FCC regulation, which is a story for another day).  It is not hard to find an absurd story (or ten) every day via my Google reader, and thus they turn into blog material for you, the dear reader.  So, yes, I am quite thankful for the internet as a facilitator to why we can better educate one another, chart history, and add in some common man's sense and perspective every now and then.  Ultimately, it means that we the people get our say in what is news and what is not news, instead of being spoon feed the garbage by the cable news networks or the lame stream media. 

As the headline of this post depicts, this is a story that almost no American media outlets reported.  While I've hinted at the US economic leadership engaging in trade wars in prior postings (mainly from Zero Hedge), this is one for the record books.  Helicopter Ben has basically said outright, expect tariffs, quantitative easing / dollar devaluation, and any other radical efforts to get trade to rebalanced through out the world.  If read correctly, and as Robert Morley pointed out, the meaning of Ben's speach is that is China to be blamed for all the trade problems in the entire world. 

Huh?  Did I just read that right?  Bernanke just blamed China for the irrational exuberance in the United States that has persisted for the better half of the last century?  Now, we want to pick a trade war with our largest non-Federal Reserve debt holder?  Seems like a wonderful way to achieve that trade re-balancing now doesn't it?  Of course, while the Fed's printing processors tack on more zeros by the millisecond to the green back's money supply, the Fed's chairman is out shouting from the roof tops that we need a new internationally run money scheme that will help solve the imbalance of trade.
“As currently constituted, the international monetary system has a structural flaw,” said America’s chief banker. The dollar system is broken. “It lacks a mechanism, market based or otherwise, to induce needed adjustments by surplus countries, which can result in persistent imbalances” (emphasis mine throughout).
So, we need a new system, one that would be run by the IMF or potentially the United Nations, which will effectively force United States citizens into the servitude of the international bankers and politicians?  Sorry, not on my watch.  Color me a bit of a gold bug, but isn't that exactly why the United States had the gold standard?  Money at a fixed rate that was mean to prevent the manipulation of the money supply that has led to these "persistent trade imbalances?"  I'll save you from looking if you didn't already know that the answer was yes. 

Look, the short answer to these problems is, start spending less, fix the structural problems in our own economy (over taxation, over regulation, and over indebtedness) and world trade will fix itself.  We are seeing an end to the great world experiment with socialism and welfare and perhaps even fiat money.  Personally, I say, GOOD RIDDANCE!  It's time that we found out what things are really worth, and how the individual can pay for the things he wants and needs.  If that's too hard on people, well, too damned bad. 

Oh, and Helo-Ben, why don't you stop trying to piss of the largest external bond holder in the world?  They can certainly fight this trade war better than you, and I wouldn't put it passed them to be ready to do exactly that! 

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