House of Paine

blog quest IV

THERE'S THIS JOE THE GREEN TOED WANG
OUT THERE IN BLOG SPACE 

A REAL BUTTERY BRIGHT NERDNIK

FIND UNDER THE FOLD
A COUNTER BLAST BY MOI


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wang sez 
 
"knzn: Won't work. China can sterilize it's dollars because it has a huge reserve of savings in RMB that it can pull out of circulation. The US *doesn't* have this pool of savings" 
"the US must save more" 
 
no joe NO NO NO

you're being very stoic 
and "there's no free lunch" like  

but you are wrong 
 
in knzn's plan the fed buys  up rmb   
with freshly minted  dollars  
and  
the potential supply of dollars
       availible to the fed's  virtual mint 
                        is ???? ... 
                                right !!!! 
 
all we need is a fed 
prepared to use what it has 
  as much of as it needs
dollars 
and not hide its powers  
for fear of inflation waves 
and de ja vue '29s  
 
this is balderdash 
 
so the trans nats 
rigged game can continue 
exchange rate based trade advantage  
is not in the text books 
but its out there in the real deal  
 
unless u  
like this rig job 
choaking off amerika's decent wage rates 
 
u need to stop thinking  
it's all 
unavoidable  
all the inevitable dismal force of global progress  
 
all amerika's nits need do 
 
is the economic equivaent of diet and exercise 
 
ie 
 
job harder and save save save save  
 
guys amerika's job households expenditure rate 
out of income and borrowing 
is not the problem at all 
 
any more then german and japanese households 
are a global problem 
because like a bizzare gang  
of anti amerikans  
they save too much