Chinese President Hu Finally figures out the US is Exporting Inflation

President Hu was quoted: “For nations outside the United States increasingly high food prices accounts for the largest part of our citizens’ budget. We can not allow Ben Bernanke’s monetization of the deficit to destabilize the developing economies by exporting inflation.” Many economist are quick to point out that in many LDCs (Least Developed Countries) food accounts for 50% of a families budget whereas in the United States it food is roughly 13%. 2-20-2011.

China quit buying US financial assets in December. For years the Chinese were content to buy treasury notes and import our excess dollars and in essence import our inflation. It looks like those days are over. It looks like China along with Russia, billionaire “Spooky Dude” Soros and other countries will be establishing a new world currency.

Chinese President Hu Jintao finally figured out why mercantilism economic policies do not work, after a few trillion dollars or something like that.

As predicted by any economist with the ability to understand economics the Chinese simply got feed up with importing our inflation problem into their country. As the article below correctly points out food in the US as a percent of our budget is about 13% to 16% whereas in less developed countries it can easily reach 50% or more of the average workers budget. For us we gripe about prices. For someone living in China it can be a matter of life and death. The Chinese ate our inflation for years. Now it is our turn to choke on all the excess dollars the Federal Reserve is monetizing.

As a side note Donald Trump, the economic illiterate, wants to punish the Chinese because they gave us billions of dollars of goods and consumed billions of dollars of our excess cash. How stupid can a rich man be? The Chinese did us a favor. A trillion dollar favor. The least we can do is towel off after screwing the Chinese in the ass.

The blog below appeared in The Market Oracle on 2-20-2011

Chinese Renminbi Announced As New World Reserve Currency After Emergency G20 Meeting

By: D_Sherman_Okst

Dated [xx/xx/201x]: Fill in the future date of this article/press release by using your own common sense or Ouija board.

China’s President Hu Jintao and China Central Bank Advisor Xia Bin called an emergency meeting of the G-20 Member Countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States and the European Union) this weekend.

Saudi Arabia, Turkey, South Africa, Argentina, Brazil, China, India, Mexico and Indonesia were reported to have been extremely concerned over the recent fall of Egypt and Tunisia’s government. They expressed grave concern over the rapidly growing civil unrest caused by protests over rising food prices, high unemployment and other poor economic conditions in the region. Unrest has recently erupted in Tunisia and spread to Egypt, Ethiopia, Nigeria, Libya, Morocco, Bahrain and Iran.

Speculation is that China’s Jasmine Revolution was not able to be squelched through its iron firewall. It is believed that this is was what made President Hu take action.

China has long been concerned with inflation. Recently a growing number of its population of 1.3 billion began shouting slogans like: “We want food to eat, we want work, we want housing.”

China has seen many of its regimes toppled by social unrest sparked by high food prices.

President Hu was quoted: “For nations outside the United States increasingly high food prices accounts for the largest part of our citizens’ budget. We can not allow Ben Bernanke’s monetization of the deficit to destabilize the developing economies by exporting inflation.” Many economist are quick to point out that in many LDCs (Least Developed Countries) food accounts for 50% of a families budget whereas in the United States it food is roughly 13%.

China has raised interest rates several times – despite US objections – in attempts to mitigate their inflation.
Economist now predict that the United States will either default on its 128 trillion dollar debt or quickly suffer the consequences of hyperinflation through the Fed’s continued monetization of the unplayable portion of the deficit. 57% of the deficit is unfunded (looted) liabilities like Social Security and Medicare. 23% of the deficit is debt service. Economist say Monday’s FX rates will determine gas prices and food prices and the new value of the USD.

“There was a growing concern that Bernanke’s fiscal policies would prove the Mayan’s correct, I suspect the United States will find an excuse to wage nuclear war over this,’” said one prominent historian.