Ovvero: Pararsi un po' il cul* in questo pazzo pazzo mondo di carte filigranate, iperfinanza globalizzata e picco delle risorse

mercoledì 12 agosto 2015

Jesse: What Recovery? Currency Wars

Secondo Jesse la mossa cinese di svalutare di un 2% lo Yuan è un chiaro e semplice segnale agli USA che il Dollaro è troppo forte.

Troppo potere e troppo denaro è finito in questi anni - come negli anni '20 che portarono al wall street crash del '29 - nella finanza, nelle mani dei banchieri e di un 1%, lasciando le classi medie occidentali senza il denaro per costiture la domanda di beni e prodotti necessaria ad una vera ripresa.

Jesse's Cafè Americain - Gold Daily and Silver Weekly Charts - What Recovery - Currency Wars
11 August 2015

China shocked the world markets overnight by devaluing their currency by the most in two decades.

A devaluation of this sort is designed to improve the domestic economy by stimulating exports, lowering domestic costs of production relative to other sources, and to inhibit imports by raising their relative prices.

In other words, China clearly signaled that the US dollar, to which they were matching their own currency, is overvalued relative to the state of the global economy, and especially their own.

China is 'the canary in the coal mine' for the global economy, a major source of labor and supply. Their own economy is sick because demand from overseas is down.

And why is demand lower? Because multinational corporations and the banking system have been financializing nearly everything to increase corporate profits and the wealth of a very few, pretty much at the expense of everyone else.

So if the people do not have the money to buy, and cannot keep increasing their private debt to service consumption because of the predatory lending and fees in the system, guess what happens to aggregate demand? Duh.

This is not new. This is not unknown to economists. Thanks for Wall Street Parade for reminding us of Franklin Roosevelt's campaign speech delivered at Oglethorpe University in 1932 during the depths of the Great Depression.

"Our basic trouble was not an insufficiency of capital. It was an insufficient distribution of buying power coupled with an over-sufficient speculation in production. While wages rose in many of our industries, they did not as a whole rise proportionately to the reward to capital, and at the same time the purchasing power of other great groups of our population was permitted to shrink.

We accumulated such a superabundance of capital that our great bankers were vying with each other, some of them employing questionable methods, in their efforts to lend this capital at home and abroad. I believe that we are at the threshold of a fundamental change in our popular economic thought, that in the future we are going to think less about the producer and more about the consumer.

Do what we may have to do to inject life into our ailing economic order, we cannot make it endure for long unless we can bring about a wiser, more equitable distribution of the national income.”

The bankers have everyone focused on their interest rate antics while they have inflated their balance sheets obscenely, primarily for the benefit of the denizens of the FIRE sector who are acquiring productive assets and establishing monopolies with that paper. The Fed is a key regulator of the banking system. And they are failing badly.

You may disagree with the methods that FDR used during his 'New Deal' but I think his analysis of the problem was correct.  Andrew Jackson made similar observations in a different time and used different methods to address the issue. They are outlined in his famous Farewell Address.

"But with overwhelming numbers and wealth on their side they are in constant danger of losing their fair influence in the Government, and with difficulty maintain their just rights against the incessant efforts daily made to encroach upon them.

The mischief springs from the power which the moneyed interest derives from a paper currency which they are able to control, from the multitude of corporations with exclusive privileges which they have succeeded in obtaining in the different States, and which are employed altogether for their benefit; and unless you become more watchful in your States and check this spirit of monopoly and thirst for exclusive privileges you will in the end find that the most important powers of Government have been given or bartered away, and the control over your dearest interests has passed into the hands of these corporations."

The problem was not paper money per se, but the concentration of power and wealth which the abusive use of the monetary power had granted to a few powerful individuals and institutions. No system is foolproof when a foolish people will allow the unscrupulous few to operate it in secrecy and without transparency, accountability and the rule of law. And if anything is clear, the crony regulation by the Fed and others of the Banking System, or lack thereof, is a failure and the source of much of our mischief.

tutto da Jesse

1 commento:

  1. Si stampano i soldi e se li distribuiscono tra di loro.
    Prima che crolli tutto, si compreranno tutti i beni reali e lasceranno la moneta fiat (dicesi: carta igienica) nelle mani dei poveri illusi!