Power And Dollar

Freely Traded Chinese Currency = US Inflation = More Votes for Obama

http://www.forbes.com/markets/feeds/afx/2008/02/27/afx4706749.html

Politicians in the States keep wanting to have a freely traded Chinese currency, Yuan, see http://www.guardian.co.uk/feedarticle?id=7290417.  Chinese Yuan is likely under valued and therefore Chinese products are likely underpriced.  Therefore, a free traded Yuan would then bring up the exchange rate.  Well, that is pretty much a direct inflation for US consumers right there. 

Are Republicans trying to lose the presidential election?

Currently, inflation excluding energy costs are going up.  Well, if you consider the rise of oil too, then the inflation is actually going to be even higher.  Inflation is never a good thing for the incumbent party, when elections are getting close. 

http://www.forbes.com/markets/feeds/afx/2008/02/27/afx4703334.html

At this moment, what the US needs is more foreign investors, be they bond buyers or stock buyers.  Cutting expenses at this stage will not help the election, although it is the right thing to do.  But then the Republican controlled Congress created a task force to discourage sovereign funds:

 http://www.guardian.co.uk/feedarticle?id=7341801

One can build an endless Great Wall to protect oneself.  The cost of the Great Wall may at the end out weight the cost of facing the conflict.  How much effort can the Bush Republicans put to defeat its own presidential candidate McCain through its economic policy?  Are they now all Obama converts? 

A good leader requires 2 things: inspirational and talent management.  However, great leaders do not always get to become the leader.  Sometimes, lucks are involved.  And it seems like even the Republican Bush is ready for a chapter too.

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February 28, 2008 - Posted by | Current Affairs | , , , , , ,

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