Download Comparing the Chinese and US Central Banks

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Comparing the Chinese and US Central Banks
Guardian: China stuns financial markets by devaluing yuan for second day running
CEC Comment: The People's Bank (Chinese version of our FED), seems to be owned controlled by the state,
rather than by the biggest banking moguls, as in the USA, EU, and UK.... Martin Farrer and Fergus Ryan,The
Guardian, August 12, 2015, in Beijing, write: "China stunned the world's financial markets on Wednesday by
devaluing the yuan for the second consecutive day, triggering fears the world's second largest economy is in worse
shape than investors believed. The move sent fresh shockwaves through global markets, pushing shares sharply
lower and sending commodity prices further into reverse as traders feared the move could ignite a currency war
that would destabilise the world economy...There were widespread losses in Asia, and in Europe stock markets
...The Chinese currency hit a four-year low on Wednesday after the People's Bank of China set the yuan's daily
midpoint even weaker than in Tuesday's devaluation."
People's Bank of China - the central bank of China
Your editor adds, for the benefit of us money
victims
Central Banks devalue and re-value their currencies all the time through the practice of buying or selling (in the
USA) US bonds, notes and bills. The US Central Bank is called The Federal Reserve (The FED). The International
Monetary Fund (IMF) might be regarded as super central bank that seems to be an extension of the two central
banks who won W War II, the US FED and UK's Bank of England. The unfortunate rule of central banking is that
the winners of war own the central banks and the losers are looted. The US FED is privately owned and
controlled through several major banks, and it has been thus since 1913. This mean our vote has no influence
whatsoever over our nations monetary (debt) policy.
In contrast, The Chinese central bank, called the People's Bank, seems to be owned by the state and appears to be
controlled by the politicians who control the state, rather than the biggest bank moguls as in the USA and UK. This
also means the votes of citizens (if they have a vote) has no influence over monetary (debt) policy. Chinese policy
seems to be coordinated in the hands of political leaders, and is less likely to be controlled by private bankers. As I
see it, public ownership by the communist party, as in China and Russia might be a better choice, if we had a
choice.
Which evil is worse... to have control the money system that underlies your every financial move in the hands of
Lloyd Blankfein, the billionaire current president of Goldman Sachs, and J P Morgan Chase president Jamie
Dimon, or the China system where the central bank is run, as best we know, by the party apparatus that controls
and appoints the political leaders whose names we often forget? The same is probably true in Russia, where
Vladimir Putin probably dictates the policy of the Bank of Russia while he is in command, or as the religious
leader in Iran control its central bank.
To sum it up, we Americans are caught in a financial mess because most of our future is tied to our Dollar. Each
banker mentioned has had his hands slapped for fraud in office, and each giant bank that owns the FED, from
Wells Fargo to Morgan Chase, took $ billions in bail out money from the treasury less than a decade ago, ripping
off every one who depends on the stability of our savings.
China is devaluing to prop up its exports...that's how devaluation works, at least for a while. It is oh so simple, but
if every country did it together it would have no real impact, but to make prices go higher.
One almost unnoticed beneficiary of the China financial carnage in the last few days is gold and silver, which have
finally started to slowly rise in price. Why, because these cannot be printed. - Charles E Carlson
By this author about the eventual impact from the sale of US bonds:
"US Treasury Bonds,The Godfather Of All Bubbles," April 27, 2015: http://whtt.org/us-treasury-bondsthegodfather-of-all-bubbles/
"China stuns financial markets by devaluing yuan for second day running":
//www.theguardian.com/business/2015/aug/12/china-yuan-slips-again-after-devaluation
Post date: 2015-08-12 15:18:54
Post date GMT: 2015-08-12 15:18:54
Post modified date: 2015-08-18 16:46:55
Post modified date GMT: 2015-08-18 16:46:55
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