Monday, June 21, 2010

My Letter to the Wall Street Journal re: China Revalues the Yuan

Re: China's Yuan Rises to Highest Level Against the Dollar in Modern Era

Dear Sirs:
I cannot impress strongly enough upon your readers my recommendation that they read Murray N. Rothbard's The Mystery of Banking. Rothbard explains in capsulized form the means by which our central bank, the Fed, has created the conditions for a much higher price level in America (what most people wrongly call "inflation"). There is no way to stop this process now, because the Fed is intent upon reflating the economy, which is short-hand for destroying the purchasing power of the dollar by printing massive amounts of money. Why will it do this? Because it is the only way the government itself can repay its debts, at least in dollar terms. China now understands this. It has moved from confidence in the dollar to loss of confidence in the dollar. Therefore, it will reduce its dollar holdings by repatriating them to the US. Other nations will follow. This will increase our DOMESTIC money supply and push prices much higher. Do not believe that anyone is the cause of this other than our own government. We are about to reap the wages of a half century of money inflation.

Patrick Barron

No comments:

Post a Comment