Monday, October 25, 2010

Germany, One Of The World’s Biggest Currency Manipulators, Accuses U.S. Of Currency Manipulation

Let’s use this post as an example of how countries around the globe have and continue to endlessly manipulate their currencies for personal gain.  Not only personal gain, but personal gain at the expense of other nations.  Or as many like to call it today, free markets.  Hahaha.  The only thing free is media air time banksters and crooks use to manipulate the public.  You see, the economic model of neoliberalism encourages countries to prey on each other rather than create models of sustainable economic development.  In other words, wealth is generally created at the expense of someone else.   Globalization is all about predation. 
Germany is one of the world’s most successful currency manipulators today.  And they have been for decades.  Frankly, this is not a matter of blame.  This system morphed out of nothing because the United States wiped its hands of its obligations as the world's reserve currency under one of the great crooks of our time, Richard "Dick" Nixon.  (By the way, he did so at the behest of the economics community and the criminal banksters.)  Germany is simply taking advantage of a system which allows them to manipulate their currency.  So why wouldn’t they?   Every nation is a currency manipulator under this economic model.

The Euro was most likely conceived by bureaucrats in France and Germany to provide unfettered access to larger markets for their exports.  Exports from very protected industries that were shielded from competition and subsidized by domestic policy.  (ie, currency manipulation.)  This isn't an indictment of either country.  It's just a fact.  Would you rather have a job or not?  Additionally, including weak export nations into the Euro zone benefits France and Germany by weighing down the value of their currencies with the much weaker euro currency instead.  In other words, adding the dogs of Europe's economies into the eurozone benefits France and Germany by weighing down the euro curency.  What does this mean?  Well, amongst other things, the weaker nations of the eurozone have paid for Germany’s cost of reuninifcation of East Germany through this dynamic.

In other words, when the euro was first set up, the weaker nations were given a much higher exchange rate into the euro zone than their currencies deserved.  And that meant they had greater purchasing power to buy more exports from France and Germany without any type of import regulations or tariffs.   This benefited Germany and France and provided substantial economic activity in these two nations.  Exports into propped up euro countries effectively paid for the cost of German reunification while burdening these weaker nations with tremendous debt.  So, why are the Greeks, the Spanish, the Portugese, the Italians and the Irish broke?  It isn't because they like vacations or only work 46 weeks a year as many idiots would tell us.  It is because German and French banks lent them astronomical sums of money to buy exports from French and German factories.  And the higher the unifcation value of each of these country's currencies, the more they could afford to buy from the French and the Germans.  And that means the greater the ultimate mess it would create in these "second tier" eurozone countries.  And now in retrospect were doing just that with the countless German companies bribing officials in weaker euro area countries to buy endless products from Germany which were not needed.  (Remember, while many are bullish on Germany, we have been and remain very bearish.)

I think now you can understand how currencies are manipulated for personal gain at the expense of another nation.  And why we have remarked that the Greek people should default on their foreign debts.  This fraud in Greek and other euro nations is no different than what is happening in the U.S. housing market.  Bankers preyed on homeowners, most of whom were manipulated for personal gain by banksters.  Now on the back end when the system collapses, who suffers?  Again, the homeowner who bears the burden of the great debts built up by a criminal banking system.  Debts that we are now backstopping with endless bailouts and burdens placed on us by the Federal Reserve and politicians.  Ditto in Greece where society and necessary social programs are being ripped apart by the criminal activities of endless spending for the sake of a very few.  And now the burdens or subjugation created by new banking bailouts of Greece.  The bailouts serve no purpose other than to make sure the banksters get their criminal take on the backs of the Greek people.  Effectively enslaving the people of Greece for the criminal activity of globalization.

Germany accusing the United States of currency manipulation is a little like the devil himself blaming others for sin.  Germany personifies currency manipulation. 

Title link here.

Next post will be our look at the Greek crisis through the lens of reality we promised some months ago.
posted by TimingLogic at 11:11 AM

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