When the momentum of the masses gravitates toward the truth, those that desire to suppress it have always resorted to smoke and mirrors to divert the people’s attention away from the truth and to channel their focus into avenues that waste their energies. But bankers and politicians have just crossed the line, specifically Tim Geithner. Tim Geithner is now using morally disgusting tactics of race baiting to draw attention away from Central Banks’ destructive policies of massive currency devaluation as the cause of people’s grief and misery in an attempt to misdirect the focus of their anger away from the true culprit of bankers to the convenient scapegoat of “foreigners”.
US Secretary Treasury Tim Geithner effectively blamed China for the world’s monetary crisis when he recently stated, of China’s weak yuan policy and resistance to appreciating the yuan even more: “it’s unfair to countries that were already running more flexible regimes and let their currencies appreciate.” Geithner also stated that China must change its policies of maintaining a trade surplus because with Americans saving more, they need other countries, for political reasons, to have their exports more competitive with cheaper Chinese goods.
You are 100% wrong Tim. It’s unfair to blame other countries for the attacks on American people’s wealth instigated by the US Federal Reserve. What people fail to understand about currency exchange rates is the theory of currency relativity. To say that other countries like Japan “let their currencies appreciate” is a total distortion of facts. Japan’s yen has increased a mind-boggling 51% from about 124 yen to the dollar to just 82 yen to the dollar in three years is primarily due to the US Federal Reserve’s destruction of the US dollar. The Thai baht has massively appreciated nearly 41% from 42 baht to the US dollar to 29.85 baht to the US dollar in just 6 years not because the Thai economy is booming but because the US dollar has been crashing. To say that countries have “let their currencies appreciate” is comparable to saying that British colonists “let Africans ride their ships” to America during the slave trade.
As far as international trade is concerned, the incredible weakness of the US dollar is a thousand more times more harmful to the global economy than the strength of the Chinese yuan. Every country in the world holds US dollars for international trade and every Central Bank in the world holds large quantities of US dollars in their reserves, not Chinese yuan. Is the Chinese bank rigging the Chinese yuan to be weak? Have they cut their peg to the US dollar. Yes and yes. But so what? The Chinese Central Bank was forced to cut the dollar peg in order not to destroy the yuan. It wouldn’t be so weak if the US Federal Reserve hadn’t rigged policy for 98 years in a row and deliberately devalued the US dollar by 96% to 98% during this time. If the US Central Bank ever enacted monetary policy that was beneficial for Americans instead of just for the private banking families that own them, then they would strengthen the US dollar and the Chinese Central Bank would re-establish the dollar peg. So why doesn’t Tim Geithner really tell the truth?
The Chinese Yuan’s influence over the world economy, especially when compared to the US dollar’s influence over the world economy, is miniscule despite the lies Mr. Geithner spews. But Mr. Geithner seeks a foreign “enemy” to blame because he doesn’t want Americans to understand that the most dangerous threat to the livelihoods of Americans is homegrown. And this is completely reprehensible and dangerous because the vast majority of people in every country in the world fails to properly understand the mechanisms of the monetary system and thus will channel all their frustrations of their economic misery into the hatred of foreigners instead of channeling their energy into a positive and necessary overhaul of our current monetary system.
For Timothy Geithner to whip up hatred against the Chinese for a weak yuan as the reason for global economic problems and as the reason for economic problems in America is a truly despicable low, even for him. Yes it’s much more convenient to stir up hatred against foreigners, and your smoke and mirrors game conveniently removes the attention away from your own failures, Mr. Geithner, but this blame game in which you have engaged is morally reprehensible. The monetary policy of the US Federal Reserve is far more harmful to Americans than the monetary policy of the Bank of China. If Tim Geithner called for the US Federal Reserve to significantly strengthen the US dollar, doing so would help Americans a thousand more times in the long run than calling for China to strengthen the yuan. But of course, he is between a rock and hard place now, because the US Federal Reserve has imposed artificial monetary policy in the US for so long now and created such massive distortions in the pricing of all American capital markets that doing so would cause massive short-term misery to Americans before the healing process could begin. And doing so would infuriate the nation against bankers. So the solution? Make up a fake foreign boogieman and blame the foreigner for a problem that has originated at home.
Mr. Geithner, you can blame the Chinese government for silencing, imprisoning and even killing Chinese dissidents or rake them over the coals for their vile treatment of Tibet, and stand on moral high ground, but to blame them for American economic woes has relegated you to the lowest status of an official hate monger.
Since a lot of people find visuals much easier to understand than words, look at the latest monetary base chart, dated September 30, 2010, from the Federal Reserve of St. Louis below.
If the US Federal Reserve hadn’t created nearly $1.2 trillion new dollars out of thin air in just the past two years that relegated the US dollar to the status of Monopoly money among all leading global economies, we could worry about business at home instead of trying to dictate to other countries how they need to run their monetary policy. Maybe if any American politicians had the cajones to stand up to the destructive policies of these bankers, Mr. Geithner wouldn’t need to waste so much energy every single day in spreading lies to the people but might actually be able to work on finding a sustainable solution to America’s current economic woes right here inside of our own borders.
Fellow banker Dominique Strauss-Kahn, head of the International Monetary Fund, also warned in an interview against countries using monetary policy as a “weapon”. Again this is just an idiotic warning, as every Central Bank in the Western world has used their monetary policy as a “weapon” to inflict much more harm to their own people in pillaging their wealth than any “foreign” Central Bank. Strauss-Kahn should stress that Central Banks in Europe and the Americas should cease attacking and destroying the wealth of their own citizens first before he starts complaining about the actions of outside Central Banks as the cause for global economic woes.
Politicians, unsurprisingly have entered the race baiting game as well. Senator Charles Schumer (D) recently declared, “China’s currency manipulation is like a boot to the throat of our recovery.” How about the Fed Reserve’s 98-year currency manipulation being a boot to the throat of the American economy, Mr. Schumer? At the end of September, the US House of Representatives passed a bill to raise tariffs on Chinese imports by a vote of 348 to 79. “A 25 percent to 40 percent tilt against us is unacceptable,” said US Representative Sander M. Levin (D). “This bill says we cannot and will not look the other way. We are going to act.” Charles Schumer and Sander Levin, let me congratulate both of you for having zero understanding of monetary mechanisms. If you did, you would be investigating the US Federal Reserve as the root of the problem as to why so many Americans are unemployed and struggling today.
But this race baiting game doesn’t just end with bankers and politicians. The mainstream media has also joined the race baiting game. A New York Times editorialist, stated on September 17th, “It is good to hear Mr. Geithner speaking out. It was also good to hear Japan this week criticizing China’s currency manipulation. The Obama administration now needs to persuade more countries to speak up. That may be the only way to get China to abandon its victim act and its policy that is doing huge economic damage around the world.” No, what actually would be good is for the New York Times to stop spreading misinformation and lies and to not allow journalists that do so to write for their paper. There has been no greater damage done to the global economy than the US Federal Reserve’s consistent and artificial devaluation of the US dollar for 98 years but yet there has not been one American banker, not one American politician, and not one American mainstream journalist that has the balls to tell the truth instead of taking the cowardly route of blaming foreigners for our problems (with the exception of Ron Paul).
I’m disgusted with our bankers and politicians because not only is this race baiting game morally foul but it also will undoubtedly produce more Vincent Chins. As an Asian American living in the United States in the 1990’s, I have been harassed and illegally searched by police multiple times for no reason, witnessed dozens more friends illegally searched and intimidated by police, and called “chink” more times than I can remember. Yes, these incidents all happened in the 1990s, not in the 1950s or 1960s. So when I tell you I know that a result of Tim Geithner’s race baiting will be another Vincent Chin, I know what I am talking about. Mr. Geithner’s racially charged propaganda is the first step to creating the type of racial animosity that allows a Mussolini or Hitler-type persona to rise to power. You may think this is a stretch to make this comment, but the implementation of false beliefs into the psyche of a nation is how tyrants always rise to power.
So who is Vincent Chin? Vincent Chin was a Chinese American that was beaten to death by two racist unemployed Detroit auto employees that sought any Asian-American scapegoat to unleash their vile hatred against Asians that resulted from Japanese auto manufacturers’ increased US auto market share during the early 1980s. Before bashing in Vincent Chin’s skull with a baseball bat, the two murderers yelled at Vincent, “It’s because of you little motherf**kers that we’re out of work.”
There will come a time when Americans, unemployed, hurt, scared, and miserable, will direct their misguided anger against foreigners instead of rightfully directing it towards bankers. And who will we have to thank when another Vincent Chin is beaten to death? Tim Geithner, Dominique Strauss-Kahn, Charles Schumer, Sander Levin, and the New York Times. Or instead of Vincent Chin, perhaps the weak-minded that fall victim to Mr. Geithner’s race baiting games will beat a Russian-American to death when our leaders eventually ramp up their “blame game” to include foreigners other than just the Chinese. Mark my word, US government and banker propaganda against Russia is coming soon to a TV or newspaper near you. Or maybe an Arab-American will be beaten to death when the media starts running stories about a Middle Eastern country that defects from the devaluation game as well. After all, the politicians would be able leverage the built-in hatred from 911 to easily blame select Middle Eastern countries for our problems as well. Instead of pointing the finger at others, Tim Geithner, Dominique Strauss-Kahn, Charles Schumer, and Sander Levin all need to look in the mirror when looking for parties to blame. If they did, they would find the true culprit to blame. As this economic crisis deepens, the rhetoric of these men will assuredly serve as an impetus behind a surge in hate crimes.
All of these so-called “leaders” are wolves in sheep’s clothing that have unilaterally failed to attack the true root of this problem one single time during their tenure. That culprit is the dying US dollar and the miserable failure known as the US Federal Reserve. I only pray that before the next Vincent Chin happens, people will see through the smoke and mirrors of these charlatans and think for themselves.
Author acknowledgement: JS Kim is the Chief Investment Strategist for maalamalama, an independent investment research firm dedicated to helping the retail investor avoid investment fraud and to build wealth at REAL rate of returns given the massive currency debasement policies of Central Banks today. This article is dedicated to the memory of Vincent Chin, Amadou Diallo, Yusef Hawkins, Ming Hai Jim Loo and all other Americans killed as a result of hate crimes. R.I.P.
Republishing rights: The above article may be reprinted on other websites as long as all text and links remain intact and unaltered, including the above author acknowlegement.
