After accusing China being responsible for the housing bubble, Bear Stearns, Lehman Brother, Merrill Lynch, AIG, Goldman Sachs, Bernie Madoff and the Fed’s stinking balance sheet, Fed Chairman Bernanke now says China is the reason why the U.S. has almost double-digit unemployment, distressed housing prices, unAmerican consumers and unacceptably low inflation. Keep it up, Ben!
In its new cover story, the outdated British newspaper THE ECONOMIST produced the same old BS it has been manufacturing since the Cold War. Xi Jinping is not an emperor, and the Chinese people are not serfs or slaves. As much as you wish it so, the CCP has little to do with Communism. Presidential dynasties are a phenomenon almost universal. But then, disconnectedness to reality has always been a sign of decline.
is that this is a study that has little forecasting power. Theories are formulated post-fact. According to the classic economics theory, quantitative easing should lead inflation to go up and the country’s currency to depreciate in value. Though that is certainly not the case in the 21 century globalized economy we are in today. US government’s printing press was in full steam, yet deflation is a concern and USD is stronger still.
Always wondered what kind a conversation it would be when the two extremes meet:
For people who make a living by offering predictions, it is worthwhile to track how well their crystal ball work on the long-term.
The famous once-analyst Meredith Whitney is currently forecasting impending crisis for the 50 states in the U.S.
“Crippling debts and deficits are about to make individual states the next casualty of the credit crisis…But other states, such as California and Michigan, will burden the entire country should the federal government decide to step in with a bailout. States are required to balance their budgets, but massive debt-service payments could prevent that from happening in many states and necessitate the federal government to step in.”
After sleeping with the devil (read: Chinese government) for a number of years, Google woke up one day and decided it had enough. “I’m going to leave you now,” said Google. “The world knows you are evil. And you see, my philosophy is ‘Don’t Be Evil.” Thanks for the &^%&*(&…Hey, it was never good, you *&&^@!”
A few months later, Google still hasn’t packed up and get its ass out of the devil’s chamber. At the moment of departure, Google had an epiphany: Being the most innocent being in the universe, it needs the nourishment of devil’s scum to stay strong. “Please, can I stay?” Google plead to the devil, all teary. A moment later, Google hardened its voice, puffing on a cigar, said in a slow feminine voice: “My dear, whatever you do, you are evil. Let me stay, I shall $@#% you harder than before. If you don’t, I will send all your nude pictures to my minions.”
Sometimes you find a glimpse of humor in dreary Bloomberg stories: Keeping the yuan pegged to the dollar has been “a great source of stability” for China and the world, the Columbia University professor told reporters in Hong Kong today. While U.S. President Barack Obama welcomed the move, “he is not an economist,” Mundell said.
I love these interviews with Chinese officials (I posted one previously of Chinese Ambassador in the UK having tea with the FT) or executives. These people don’t talk to foreign press that much, and their manners are interesting to watch:
FT talks with Beijing Auto.
For all those who think their stash is never thick enough, here is the federal poverty level.
Still a long way to go to be officially poor?
number of person(s)
1 $10,830 $11,913 $13,538 $16,245 $18,953 $20,036 $21,660
2 $14,570 $16,027 $18,213 $21,855 $25,498 $26,955 $29,140
3 $18,310 $20,141 $22,888 $27,465 $32,043 $33,874 $36,620
4 $22,050 $24,255 $27,563 $33,075 $38,588 $40,793 $44,100
5 $25,790 $28,369 $32,238 $38,685 $45,133 $47,712 $51,580
6 $29,530 $32,483 $36,913 $44,295 $51,678 $54,631 $59,060
7 $33,270 $36,597 $41,588 $49,905 $58,223 $61,550 $66,540
8 $37,010 $40,711 $46,263 $55,515 $64,768 $68,469 $74,020
First number (annual income) is 100% of poverty, second is 110%, 125%, 150%, 175%, 185% and 200%.