Did you really think that the demise of the United States government would be a tea party attended by white-gloved ladies and gentlemen? Did you think that Uncle Sam would just mutter into his whiskey as his tax base was stolen away by Asian mercantilists?
There will be no such tea party. Long before Uncle Sam’s checks start bouncing, there will be a rain of fire, brimstone, and plenty of death from above.
QE2 is the first installment.
Personally, I would just punch China directly in the face rather than spray the whole world with QE2 monetary shrapnel as the Obama Administration’s “dirty bomb” strategy is doing right now. But I am not in charge of this enterprise.
Crazy people are.
China began this trade war when they devalued their currency and pegged it to the dollar in 1994. They have been winning the war handily ever since. Our incompetent leaders who have allowed this to happen will now incompetently attempt to “fix it”. QE2 is their first installment. If China doesn’t play ball on the exchange rate, expect QE3, QE4, QE5 and more.
Now maybe you are thinking that we need access to China’s fast-growing economy. We don’t. China’s consumer economy is only about the size of France’s, and it is not guaranteed to continue growing. In fact, it will likely commence shrinking soon. China’s whole economy is built around exporting to the USA under unfair mercantilist terms.
That will not continue.
That is the message of QE2.
Note to China: We have asked you nicely to let your currency appreciate against the dollar. You have refused. Just who the hell do you think you are? It’s time to renounce mercantilism and adopt fair trade. Of course that will hurt your economy, but it is time to admit that your economic “miracle” has been largely achieved through cheating. It’s time to come down off your preposterous ego trip and take your place alongside more humble nations like Japan. Your export economy puts you at the mercy of Uncle Sam. You are vulnerable. And take my word for it, Uncle Sam has only started to get angry. As bad as QE2 is, it is only the beginning of a long series of horrifically destructive and reckless actions. Don’t say that I never warned you.