January 20, 2011
President Obama's comments on Wednesday in a joint press conference with Chinese President Hu Jintao, misinformed the public about potential changes in foreign exchange rates and their effects on U.S. citizens.
Obama on Wednesday said that he would like to see the Chinese Yuan appreciate faster in value.
While Hu indicated that
China is committed to allowing the free market to better dictate the value
of the Yuan, Obama said China is implementing their steps to allow the Yuan
to appreciate "not as fast as we'd like."
All China is doing is
pegging the Yuan to the U.S. dollar so that their product manufacturers and
exporters can maintain some level of stability. However, the U.S. is using
this as an excuse to explain its rapidly deteriorating export market.
NIA believes China could solve their
current inflation crisis simply by allowing the Yuan to appreciate alone.
seems like the weather is always the excuse every time food prices rise.
Mainstream economists would have you believe that the world has been
experiencing never-ending droughts and floods that continue to worsen each
China is importing all of its food inflation
from the U.S. and if President Obama gets his way, China will throw its food
inflation right back into the faces of all U.S. citizens.
All the while, the American kids are antagonizing the Chinese kids, calling them currency manipulators and blaming their need for free NSLP lunches on China's currency peg (when the peg is actually preventing the American kids from starving).
later, not only will the Chinese kids throw the NSLP lunch remains back at
the Americans, but they might become so disgusted (because they paid for the
food being thrown at them) that they actually regurgitate their meals that
they worked half of the day to be able to consume, into the American kids'
China's foreign exchange reserves rose by $199 billion last quarter (its largest quarterly gain in 15 years and 78% higher than analyst estimates of $112 billion) to a record $2.85 trillion for total growth in 2010 of 18.7%.
Most likely, about 2/3 of these reserves are in U.S. dollars.
Americans have been deceived by the U.S. government and the mainstream media
into believing the U.S. economy is recovering, because the U.S. has been
enjoying the benefits of inflation without the consequences of rising
prices. When the U.S. bond bubble begins to burst and these trillions of
dollars being hoarded come home to roost, inflation will become the primary
concern of all Americans.
It is insane for Obama to proclaim that having a
stronger currency is good for China but bad for America. The rules of
economics are the same in both countries.
These simple economic principles are easy for any human being to
understand, but nobody in the mainstream media is calling Obama out on it.
The media completely accepts Obama's statements as the truth, without
providing any warning to American citizens that Obama's desired change in
foreign exchange rates will shift China's inflation crisis completely to the
We are less than three weeks into the new year and massive food inflation is already here.
SuperValu, the third-largest U.S. food retailer with 2,349 stores that operate under such names as Acme, Albertsons, and Save-A-Lot, just reported that all of their major vendors have announced their intentions to pass along rising costs throughout the calendar year and the company will be raising prices on all food items by 3% to 14%.
NIA's experience tells us that SuperValu is planning to increase prices on most goods by approximately 14%. Trust us, if SuperValu was expecting to increase prices by an average of only around 5%, they would have given an average instead of such a wide range.
(By the way, SuperValu's stock crashed 16% on the news and one of
NIA's top 10 predictions for 2011 was that U.S. retail stocks will decline
after reporting lower profit margins.)
If the U.S. Bureau of Labor Statistics (BLS) somehow manages to
report a CPI increase in 2011 of anything less than 5%, and the mainstream
media continues to report the BLS's CPI numbers as the truth, any Americans
who continue to listen to
the mainstream media deserve to lose all of their
purchasing power during hyperinflation.