The recent stock soaring trend has believed to be an indicator of economic recovery. Though the stock market was against so many odds , but surprisingly, it managed to climb to the absolute maximum in the May. Whatever bad or negative news can be retranslated or reiterated as the good news to the public through the medias and by the U.S. government. "... better than expected" is the most frequent phrase used by the medias to soothe the public's nerve, from GM bankruptcy to the record high mortagage deliquency are all quoted as positive sign of an economic comeback.
To my understanding, the obvious market manipulation(low volumes and irrational stock rallies) is not only a reflection of market's momentum itself , also is mainly served to coordinate the mission of Geithners' trip to china so as to show the Chinese government a strong sign of American economic rebound and to persuade Chinese government to extend their continuous buy of US debt because Chinese government's action on the us debt will be the signal to the rest of the world as well. I rather call this as a fully and well carved conspiracy.
Geitherner is a scheme artist. He holds Chinese government as a hostage in order to proceed his Ponzi scheme because US has no other options but keeps the game going, which needs fresh blood to kick in. Before the game is over. chinese government seems to be his last backup that he can rely on to borrow from Peter to pay Paul. If Chinese government is smart enough not to repeat the same mistake of increasing the holdings of gigantic amount of us government debt, China certainly can get out of this economic mess much quickly.
If the chinese government is wise enough to dump the US debt, which will corner the US to the brink of bankruptcy. The cost to China? the risk of depreciation of 700 billion dollars of foreign reserve, but the payback is significant by bringing down the US from the superpower of the world to the Russia Second and most importantly free China from the leash that reins China since the first day of accumulation of huge american debt. If the China government doesn't have guts to give it a shot, at least, I expect that the Chinese government can exploit this opportunity as a leverage to defer the US from intervening in China's interests in the South China Sea. We can seize this this chance to reclaim all the islands in the southern sea once in for all. On the one hand, China government can negotiate with the US about buying american debt, on the other hand, China government can take action and wage the war to reclaim the disputed islands. Of course, how the China government finds a good excuse and initiates the war is the technical part.
overall, O8 administration is a big time gambler. O8 himself has a faith that the only way to keep the ball rolling is to print money and have foreign countries to pay off. If it does work out, US will still hold the superpower for ...how long? who knows, but one sure thing is that they will continue to overspend Chinese hard working money and indulge themselves in consuming Chinese cheap products. On the top of that, they will pose themselves arrogantly as a life savior to China by showing a large scale of trade deficit to China with borrowing the money from China to import Chinese low cost goods. What a joke! I hope that China government is not a big time sucker! and let's see what is the outcome of the Geithner's trip. |
狗仔卡
发表于 2009-6-2 05:24 PM
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变色卡
发表于 2009-6-2 05:34 PM
