House of Paine

attack the yuan

     right now 
   you can get 
   more then 8 yuan 
   for
   one american dollar

   my guess
    if every one
    took his thumb off
    the scales
   and the system survived the
   "adjustment"

   maybe 3 yuan to the dollar's
    more like
    where we oughta be  

   the amazing thing iz

   trying to keep
   the yuan from rising

   has set off 
   a  boom
   in china
   that if left
   to work itself out 
    might  brake
   the world speed record

   --------------------------------------------




   its just a fact 
   when it comes to
   "weighing"
   currencies
      
    thumbs
    ARE ALWAYS
     on the scales

   SO 

   cause the chinese
   want to retain 
   a fixed rate 
   vis a vis
   the us dollar  

   as the dollar
   over the past year
   was
   dropping
    20% or so
   against
   all  the world's
   power currencies

   the yuan went 
   right on down with it

   and hey 

   if ever a currency looked
temporarily just right
when it was really a very weird two headed creature
its the  yuan-economy
 this past year

   running
first world 
with big uncle 
    up the wa-wa-zingee 
and getting  screams of raise it raise it raise it

   and yet  pulling
 the whole 
 east south east 
 asian wagon
with equally huge
 trade deficits
 there 


  but in truth over the longer haul
since the mid 90's
   the chinese
   have   
   managed 
   to 
   go down
   and keep going down
   what should mostly
         have been 
   an  up escalator 

   how' re
   they  doing  it  ?

   easy

   by 
   buyin
   billions
   and billions
    of U S   dollars
     with 
   even more 
   billions of 
   fresh new  yuan

   -------------------------

   blow back?

wild han price flights ?


   nope 

   not 
   so far 

   sure recently
    prices are 

   well 

   jumpy

   but 
   so far 

   the price  system 
   hasn't
    unhinged
   even 
   with all
   those new 
   fucking yuans 
    flooding out 
   of everywhere

   nope

   till now
   all one 
   can 
   see 
   is 
   just more output

    boom boom boom 

with such 
a wide open 
monetary policy 

  up front 

 nominal han G.D.P.
 was bound to rise fast

butski
in the systemically
uncertain  cut up 
between p' rises and q rises 
the lot of it
might have been pisseed away
 in simple /nasty 
price level rises


that ain't what happened folks

the production system
 zoomed instead

the q's are taking the lion share

what a story !
   ---------------------------------

   come on

   this can't go on 
   much longer 
   right?

   theres got to be 
   trouble 
   ahead
   right ?

    some day
   prolly sooner
   then later
   the chinkee  chew 
   yellow balloon 
   got  to pop
   right ?
   --------------------------------
   well
    heres pinks take 
   ---------------------------------

   maybe

   just maybe 

    theres
    so much slack

   so much 
   surplus manpower
   still to tap 

   that
    them Hanish  redocrats
    can keep 
   on
    building and building 

   producing
    and producing

   uncle
    built 
   and produced 
 like that
    between 41 and 44



   only this is asia
   and the third world
   and its 
    peace time!

   get me?
    
   roads harbors
    dams
    office buildings 
   auto plants etc etc etc 

   for now 
   anyway

   they still
      more then enough
   hard cash reserves
            to buy
   all the overseas  oil steel rice etc etc 
   they need
   to keep it keeping on 

   and who's to say
they'll even need 
to dip heavily 
   into their huge reserves

if theres enough euro-american demand growth
  ( don't bet on it though)

  can china tear up the global price level
as others pursue the han market suck
   nope

   the global economy
   also  has slack

   i say

   " let her rip
   chinaman
   let her rip "
   --------------------

   but
   my guess is 

   the top 
   redocratic types
   didn't get on top 
   by being cowboys

   and besides 
   they've
    been 
   listening too long
   and too carefully 
   to
   all the fucking  
    big time 
    occidental 
     sheep dipped
   " economic-market professionals"

   so 
    even if they
    don't  
    freak out 

   they're bound 
   to "pull back" 
   soon

   and 
   when they do
   they 
   may  
   produce 
   just the nasty
    back jerk
   that spreads world wide
   we all wish
 they could  pre-empt
  instead 
   -------------------------------

   what a pathetic outcome
   that would be 

   instead
    of facing
   the unknown 
   consequences 
   of 
    the systems 
   internal dynamics ..... 

--------------------------------------
   hey

   I know

    the whole deal
   here
   is raw

   butfuck

   thats the whole point

   for
   the first time
   in 35 years 
    
   a nation
    is  headed 
   into
    unknown 
   economic territory

" socalled
  "safe"  limits
 could get beautifully busted thru
-----------------------------------------------
   if 
   the yellow=reds
   can keep
    this expansion 
   roaring along 

   fuck 
   they might 
   brake through here
   big time

   smash a limit
   like the sound barrier

   and in the doing
   open up
    a hither to
    unknown  prospect 
   for all  humanity 

    but
   I got to say

    it 
   sure as hell
   seems unlikely

   -----------------------
    no 

    instead of
   letting
   the economy
   run as fast 
   as it can

   in stead of
   waiting 
    to find out
   what the fuck
    happens next 

   the red yellow bureaucrats
will 
   listen to 
   the sheepish shit 
  
take  council
   from
   the sober
    white
    status quo freaks
    
   ----------------------
   can ya hear
    the pale fucks 
   now

   i can

   " shit guys
   pull up pull up 
   you're headed
   for a nasty
    smash   
   and  
    crash
   pull up pull up  "
    
   ----------------------------------------

   irony

  the globe  may
   miss ta magic 
   moment
  
  like  when 
a man  
   finds  out

   " fuck amazing
   look
   if ya just hold on 
   past the buckin stage
    the fuckers calm down
  shit  
   you can ride
   these  beasts  
    indefinitely "
   ------------------------------

   but but but but
    
   the smart money  bet:

  " the chinks 'll jump off '
   -----------------------------

   moral:

    if  you're 
    attempting 
   to bust national
   economic  speed limits
   that are also 
   maybe a global first 

   whatever
    you do 
      or 
for that matter
    don't do

   never never 
   never

    listen to 
   any fuckin  white-kaps
    or
    their
           PROFESSOR Pangloss stooges

         after all brothers and sisters
    
   what the fuck 
   do they know

   they're the ass holes
    that gave us 1929 


   ------------------------------------------------