“Leaders of 20 major economies on Friday refused to back a U.S. push to make China boost its currency’s value, keeping alive a dispute that raises fears of a global trade war amid criticism that cheap Chinese exports are costing American jobs.” — MyWay News
The G-20’s failure to adopt the U.S. stand has underlined Washington’s reduced influence on the international stage, especially on economic matters. In another setback, Obama also failed to conclude a free trade agreement this week with South Korea.
The biggest disappointment for the United States was the pledge by the leaders to refrain from “competitive devaluation” of currencies. Such a statement is of little consequence since countries usually only devalue their currencies – making it less worth against the dollar – in extreme situations like a severe financial crisis.
What does this all really mean?
The latest series of G20 meetings represent salvos coming out of the Fed in its battle to stave off the collapse of American casino capitalism, using the tried and true stratagems of economic domination and out-and-out piracy.
Quantitative Easing rounds are in fact broadsides in the form of monetary aggression against overseas markets, which in effect floods these markets with monopoly money as fast as the Fed’s keyboards can conjure it up. The overseas response to this aggression is resulting in delays to the natural upward re-evaluation of their own currencies as these economies overtake previously emerged markets, as well as competitive devaluation in the form of frantically printing and distributing their own currency, all of which has the effect of throwing gasoline on the smoldering cinders of a currency war.
Stimulating the North American jobs market is no longer a consideration for US policy makers. This is all about power, all about who will dictate economic policy to the world and therefore dominate the world in every other aspect. The happy days of domestic US asset bubble gambling are over because they’ve all burst, with the underlying structural integrity beyond any attempt to salvage by patchwork and re-inflation. Instead of trying to inflate the tattered shreds of the US economy, Helicopter Ben’s strategy involves the creation of asset bubbles in overseas growth markets, by opening the Fed’s floodgates to release an ocean of fiat liquidity all over the world.
What we’ve been witnessing is the creation of an economic alliance of countries such as Brazil, Russia, India and China that will defend against US attempts to dominate them through gangster monetary practices. The writing is on the wall for the greenback. The dollar is finished.