Home > American Society, federal reserve, World Issues > Wall Street Journal Offers Bad Advice To China

Wall Street Journal Offers Bad Advice To China

Its always humorous to hear U.S. newspapers give financial advice to another nation. A Wall Street Journal Article, written by Tom Orlik, is a prime example of why I get such a chuckle from these rags. In this article, Tom shows that he is a Bernanke robot by suggesting that “China’s government wants to fight inflation and redistribute income, giving households a bigger slice of the pie. Higher interest rates would achieve both.”

Raising interest rates helps narrow the gap between rich and poor? Who edits this stuff? Higher interest rates do only one thing. Higher interest rates make banks more money. End of story. I hope TOM ORLIK is under 40 years old, because if he lived through the 1970’s where America tried the old “raise the interest rates and help the poor” program that Mr. Orlik suggests, and does not remember what a disaster it was, then shame on him.

China has done a great job ignoring all the horrible ideas coming from America. Bernanke’s suggestion of lowering the value of the RMB was another one. Nothing like asking the poor in China to give up 10% of their savings to help stabilize the American dollar.

Taking advice from the Federal Reserve, or from Wall Street Journal writers is like accepting the advice of a teenager who just maxed out their first credit card. Lets recap:

1) China has raised a society of 1.3 billion people from a 3rd world status to the summit of global economic power in one generation.

2) China has built the most modern infrastructure and most powerful banking and investment programs on the planet. They are building everything from within, taking care of their own society first. (Maybe our United States can take a lesson from that playbook)

3) China’s RMB is 100% owned by the citizens of China. US Currency is 100% owned by private banks.

4) China’s 1.3 billion population is coming out this year as the largest consumer population in history. Their buying power, starting this year, will dwarf every financial spending boom in the history of humanity.

So lets stop trying to give advice to China. Articles like Orlik’s “Beijing Can’t Have it Both Ways” just show our own foolishness. Its time for America to play “catch up” and start paying attention to its own financial disaster instead of handing out advice to China. Oh, and we should stop putting out our hands for more China funding of our weak dollar too. Its time to stand on our own feet.

Itia (Abroad)

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