Money is the financial war war

dollar index since mid-September into the downward track, has yet to reverse the decline. Singapore dollar, Thai baht, Malaysian ringgit, the rupiah against the U.S. dollar have hit a new high over the years; the Brazilian real, Korean won and other currencies against the U.S. dollar began to appreciate more clearly. Was also the appreciation of the RMB exchange rate channel, Diego high.

United States launched the war to prove safety of Chinese currency, the currency started the war, the aim is control of a great shift in the global distribution of wealth.

Economic prosperity, the United States "with the money of other countries caused by their own rich"; recession, the United States "with the money of other countries spread their risk." The current global crisis in the United States is performing a transfer of risk has shifted and one of the "drama."

United States launched the war to prove safety of Chinese currency, the currency started the war, the aim is control of a great shift in the global distribution of wealth. In fact, the currency war is the financial war, the war is wealth, who will come to the right to control the currency distribution of wealth and control of the flow.

U.S. "economic egotism" financial policy has been its capability. Over the years, the huge junk bond issue money and the United States the two major engines of economic growth. Dollar standard has actually evolved into the U.S. debt based system. The end of 2008, the U.S. government, social security, enterprises, individuals, nonprofit organizations total debt has reached 8 times the gross domestic product. 2009 U.S. budget deficit is about 1.47 trillion U.S. dollars, accounting for 9.9% of GDP, respectively, in 2008 and 2007, 2.16 times and 7.84 times for the peak since 1945. America's fiscal 2009 total debt of 12 trillion U.S. dollars, accounting for 82.5% of GDP. The Fed started the potential quantitative easing monetary policy intention is to greatly expand the monetary authorities through the balance sheet, so that the monetization of fiscal deficits, once again offset the cost of debt. In this sense, the United States is not afraid of inflation, the U.S. currency but this may be the biggest beneficiary of the war.

This "zero-sum game" The biggest victims are represented by China's emerging economies. Today, the inflow of 20 major emerging economies, the country's international hot money, regardless of the speed and scale are more than before the outbreak of the financial crisis. According to Brooks estimated that in April 2009 during the first half of this year, the international financial capital flows to these 20 countries reached 575 billion U.S. dollars annual scale. Among them, the first half of 2010, emerging economies into the international capital flows to Asian countries were 78.6% of the appreciation pressure on the currency composition of these countries, laid the inflation risk. Data show that 20 emerging economies, nearly 2 / 3 of national real interest rates negative, upward pressure on overall price level is enormous.

In addition, the U.S. policy of quantitative easing in these countries caused a serious deterioration in the balance of payments and foreign exchange reserves. For those with a fixed exchange rate countries (mostly Asian countries and regions), the trade surplus and huge foreign exchange reserves in U.S. dollar as the major currencies generally, in the United States imposed quantitative easing policy, it must be national or regional The currency market access requirements, while continuing large inflows of liquidity, will also lead to enter the country increased money supply endogeneity, directly play a role in changing the monetary policy mechanism and the role of the environment, thus weakening the autonomy of monetary policy.

The recent appreciation of the renminbi to force the United States has been "more than a stone carving": both want to cooperate with the U.S. export-led economic growth, structural adjustment, weak domestic demand following the economic recovery, but also want to dilute debt revaluation, disguised as U.S. deadbeat means, More importantly, hopes to implement a currency devaluation by China and the U.S. dollar of wealth between the "great diversion."

When people concerned about the proliferation of U.S. dollars, while behind the United States may ignore its debt risks. The global spread of U.S. dollar debt madness is the greatest interest of creditors "diluted." For China, China's foreign reserve reached 2.64 trillion U.S. dollars, and how to re-examine the status of creditors, manage debt is imminent.

Nearly half a century, the United States with "dollar standard" not only support the international circulation of its debt, also used the money "valuation effect", through debt or a disguised devaluation of the currency of the increase in national wealth. Pricing in international trade, the world's foreign exchange reserves, and international financial transactions, the dollar accounted for 48%, 61.3% and 83.6%. "The U.S. dollar basis" in fact has evolved into America's "debt based system." As a currency issuing countries, through issuance of foreign currency in order to fulfill payment obligations or diluted the burden of external debt, namely, by default reserve currency devaluation in disguise to pay its external debt obligations. Only from 2002 to 2006, the amount of U.S. foreign debt to total 3.58 disappeared trillion.

I am afraid that the U.S. force there is a greater appreciation of the renminbi's purpose is to inflate the economic bubble in China after the attack China. In fact, the appreciation of the RMB, while the name of the international purchasing power, along with the RMB against the huge depreciation of the purchasing power of existing assets, as well as the acceleration of international hot money inflows, this process will obviously result in inflationary pressures in China, especially in asset prices areas.

For China, the Japanese need a high degree of vigilance, "warning." Year as a starting point to sharp appreciation of the yen, the Japanese monetary policy after the Plaza Accord in the United States kidnapped the introduction of inappropriate interest rate policy after another, gave birth to the late 80s of last century's asset bubble burst in 1990, was. Period of 5 years later, the Japanese national capital loss of 800 trillion yen, nearly two years of GDP, Japan into a "decline of the decade", coupled with a decade of this century, Japan's growth recession has lasted a full 20 years.