IT’S OFFICIAL: Keynes Was Right
http://finance.yahoo.com/blogs/daily-ticker/official-keynes-112244405.html?l=1
Liberal/Socialist propaganda. If Europe wants to do this, it is better for the U.S. because Keynes has not worked since it was started over a hundred years ago.
China had about 1.3 trillion in U.S. bonds and treasuries a year ago. Today they have about 1 trillion. The Chinese economy has been slowing. To make up for the short fall, China sold 300 billion U.S. bonds and treasuries. They are increasing the amount of U.S. currency in the world and putting pressure on the dollar to go down. This also puts pressure on the Euro and Yaun to go up. China does more trade with Europe. By selling these U.S. bonds and treasuries they have money to prop up the Chinese economy, keep the dollar down, and pushing the euro and Yaun up. The Federal Reserve reversed its policy on the U.S. dollar and is not weakening it anymore (no QE3). However, China is doing a QE3 by selling off the U.S. bonds and treasuries that they own. These U.S. bonds and treasuries were being kept to help China’s economy when they started having problems. The more U.S. bonds and treasuries that China sells into the market will only hasten the Federal Reserve to raise the interest rates and when that happens the dollar will become king again.
