Here is an excerpt from recent article of his ,
The American political elite – right and left – believes that we are different from the Europeans because we issue the dollar and therefore have some special privileges forever.
But this is not the 1950s. Asia has risen. Europe will sort itself out and become more fiscally Germanic. The Age of American Predominance is over.
Our leading bankers looted the state, plunged the world into deep recession and cost the United States eight million jobs. Now many of them stand by with sharpened knives and enhanced bonuses – willing to suggest how the salaries and jobs of others can be further cut. Consider the morality of that.
Will no one think hard about what this means for our budget and our political system until it is too late?
CHINA TO BAIL OUT SPAIN
Watched a news video that showed the leadership of Spain sit down at a table across from their Chinese counterparts with about 12 people on each side of the table.
The Chinese looked like a conquering force signing papers after one country surrenders to another after a war.
Some pundits say China benefits from this a variety of ways, it allows China to diversify out of dollars, keeps a competitor to the dollar the Euro afloat, opens up the possibility of dual technology transfers of going to China to give China access to more advanced weaponry , gives political leverage to China in the case of rising protectionism within the EU pretty much a win win deal for China.
Of course this empowerment comes from the trade deficits that the US runs with China that gave China this surplus capital to give it more power.
INDIA INVESTIGATING BUYING OIL FROM IRAN USING JAPANESE YEN , OR DIRHAM.
The Dirham I believe is some type of Gulf currency either from Qatar or U.A.E.
The main significance of this is less dollars to be needed by an major emerging economy India and further pressure on the dollar.
PIPELINE BEGINS SUPPLYING OIL FROM RUSSIA TO CHINA.
I believe this whole deal was done outside of the dollar in a bilateral trade arrangement between China and Russia.
CHINA EYES BUILDING HIGH SPEED RAIL SYSTEM IN CALIFORNIA
Per article U.S. lacks both technology and expertise in high-speed rail will need outside help to build railway.
Read in comments section on this article that much of trains original technology came from Siemens the German company I don’t know if that is accurate or not.
But this article points out that the US is much better at engineering bonds as opposed to things in the real world.
I guess about 8 months ago would have been when US Federal Reserve would have started raising short term interest rates to stave off the inflation we are now seeing in commodities like gold, food and oil.
Federal Reserve chief Bernanke said he wanted some inflation so he is getting it.
Prices in houses are still deflating though, odd mix of deflation and inflation going on in different areas of economy.
Price Gold 1421.60 oz, cost of cup of coffee and my favorite coffee shop went up .20 cents in a month, from 1.95 for large cup of coffee to 2.15 a cup , and gasoline is 3.39 cents a gallon here.
This is definitely inflation in these items.
Hope everyone has a prosperous, healthy and peaceful 2011..