Goldman Sachs Extends Its Cluelessness On China
Goldman Sachs has spent years blowing utter bullshit to anyone who would listen as it pertained to the China fantasy and we wrote that all of this mainstream media and Wall Street hooey was nothing but pure propaganda along the way. Now their chief economist pushes his head even further up his arse with some great insight on China allowing their currency to float upward. As we have written over and over, the yuan is headed south whether that is accomplished via communist government decree to make exports more attractive or because the Chinese economy collapses and by extension so does the currency.
Could some interim float see the yuan trade marginally higher for some period of time if hot money plows into the country and pushes it higher? Sure I would guess that could happen. I'm also planning my personal space flight to Pluto. But eventually that hot money is going to get the hammer via a weaker currency.
We can pretty much assume all of the major themes Goldman Sachs believed to be true over the long haul are going to be wrong. Not as a contrarian statement but because they will be proven to be completely incompetent as they were on their call for $300 oil, investing in Dubai, a weakening dollar, the emerging market story, the commodity supercycle, the long term viability of China and on and on and on. All things we have said were lies as they were being perpetrated by the crooks on Wall Street and their henchmen in the media.
Goldman Sachs has one major competency that has allowed them to mint money. That is of legally bribing government officials with heavy lobbying and by the insertion of former employees into government positions in the regulatory and legislative process to get policy which tilts the game in their favor. In other words, their competency is in rigging markets they want to compete in. The next one they are trying to rig is Cap & Trade.
Their understanding of fundamentals-driven markets and economics has been and continues to be mostly wrong.
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