Home / Asia / China’s Yuan Has Risen 1% So Far This Year
Print Friendly and PDF

China’s Yuan Has Risen 1% So Far This Year

Written by Gary North on May 7, 2013

The Chinese currency, which is rigged, has risen 1% against the dollar this year. If it were not rigged, it would have risen far more.

The Chinese central bank inflates. The Federal Reserve inflates. The Bank of Japan inflates. The European Central Bank inflates, the Bank of England inflates, the Reserve Bank of Australia inflates. The central banks all inflate to keep the recovery going or to get out of the recession. All over the world, central banks are inflating as never before in peacetime.

Voters don’t know. They don’t care. Most voters have never heard of a central bank. They assume that people in charge know what they are doing. They know only this: they are not the people in charge. They are correct about this. Voters are not in charge. They have no say in the matter.

The race to the bottom is on. The central banks are on a collision course with reality. It is not possible to fund businesses if the central banks are buying government debt. The commercial banks are not lending to small businesses. So, only big businesses are able to raise money. Big business and big government are doing just fine. Main Street isn’t.

Committees of monetary experts in central banks around the world are deciding on policies that will re-shape the world. Yet these experts have only one permanent policy: inflate. The day they move to monetary stability is the day their economies move toward the first stage of recession. So, they inflate.

Bubbles, bubbles everywhere. But the voters do not understand. The voters think the people in charge can be trusted, or at least must be trusted by default.

Continue Reading on online.wsj.com

Print Friendly and PDF

Posting Policy:
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse. Read more.

3 thoughts on “China’s Yuan Has Risen 1% So Far This Year

  1. Sutekh says:

    Inflation is basically theft by fraud. So the upshot of all this is that the world is now government by thieves.

  2. "The central banks all inflate to keep the recovery going or to get out of the recession."

    There's a third reason: They inflate because they have the unique privilege of creating money from thin air, lending it out, and charging interest on it. The more they create and lend, the more they make (other things being equal). It's theft, and it's incredibly lucrative. But you knew that–I just wanted to make sure the readership did too.

  3. Jackspraat says:

    Fools and their money are soon—elected.