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No market is more important than China, according to Stephen King, chief global economist at HSBC in London. His latest quarterly report contains a chart showing increasing exports to China are correlated with faster GDP growth.
Among the winners are Singapore, Malaysia, South Korea, Saudia Arabia, Chile and Australia. Among the laggards are those that have been most aggressive in loosening monetary policy - America, Britain and some big members of the euro zone.
"Relative to GDP, the United States, France, Italy and, in particular, the UK have made hardly any progress in exporting to China: indeed, the UK's China exposure looks to be not much more than a rounding error," King wrote.
Originally posted by spangledbanner
Ben Bernanke must be insane.
He is devaluing the USD through unlimited 'quantitative easing' [printing money to give to the Banks) and has started a Currency War.
Why devalue the USD? To help exporters would you think? Well no actually. China is helping their friends like Australia, South Korea and Malaysia. China is helping its friends rapidly increase their GDP growth. Exporters in nations that are friendly to China are doing great.
America on the other hand is missing out on the opportunities in China. America needs to do more to help its exporters. American politicians need to stop the anti-China rhetoric and embrace the Asian Century.
Ben Bernanke's audacious policy of unlimited Quantitative Easing risks turning the United States into a third world country. Is it brinkmanship or suicide?
But then again, what Berananke is doing with his other hand is he is bailing out the big banks and telling Americans that it is a stimulus to make it easier for Americans to borrow Its a Bank BailOut if you missed it. They arent stupid enough to call it that again though huh?
So the only upside to destroying the value of your domestic currency ( which is also used as a Reserve for now ) would be if it helped exporters. But it doesnt. China doesnt like when the Reserve Currency holder starts a Currency War. They certainly are not going to assist.
The chief economist at HSBC London explains how America is missing out on the Asian Century.
No market is more important than China, according to Stephen King, chief global economist at HSBC in London. His latest quarterly report contains a chart showing increasing exports to China are correlated with faster GDP growth.
Among the winners are Singapore, Malaysia, South Korea, Saudia Arabia, Chile and Australia. Among the laggards are those that have been most aggressive in loosening monetary policy - America, Britain and some big members of the euro zone.
"Relative to GDP, the United States, France, Italy and, in particular, the UK have made hardly any progress in exporting to China: indeed, the UK's China exposure looks to be not much more than a rounding error," King wrote.
www.thestandard.com.hk...
So the only real winners in relation to QE unlimited are the US banks that are recieving backdoor bailouts. I have a feeling that this will be the last time that the American people bail their banks out. This is the beginning of the Asian Century and the Federal Government of America is intent on being left behind.edit on 24-12-2012 by spangledbanner because: (no reason given)