252. The PROTECTIONISM Word

Lo and behold, protectionism rhetoric and actions raises the dragon from its lair. Remember the CAUTION I gave you about steer clear of the protectionism word? O's administration didn't hear it I guess and has hurled one more egg at the red dragon. Less than a month ago the administration ignited a battle with China when they indicated that we will be selling arms to Taiwan. Was this because China is selling arms to Iran and won't cooperate with our sanction desires? The egg was the latest berating of the Chinese government for its Yuan policy, specifically if a country's currency is low compared to other countries it has an advantage in selling its products, i.e., Export Advantage. What's true these days is unknown. However, I did see numerous reports the last week that the Yuan actually gained strength against the dollar which would suggest that OUR exports to them and others have the advantage. Go figure. But, back to the bad economy finger-pointing, which is how I see it. O and crew think China is the blame for our bad economy. Couldn't be the mismanagement of our spending could it! Or the stupid Housing and financial crisis caused by OUR government. Or the ridiculous bailouts of companies that should have been left to fail. No. Now we are strapped with further increasing debt and have to BLAME it on somebody else. Hence PROTECTIONISM wars are starting. NOT good for the stock market. We are still in the infant stages of any protectionism war, but the NEWS PEOPLE are starting to pick up on it and that in itself is bad because we all know how much the news people influence things despite being wrong 80+ % of the time. So, watch your back -- we're on shaky grounds again. Hopefully this minor incident where China is reducing its Treasury debt (or is it -- see bottom of article) could just be more NEWS sensationalism. Yet, the news people are the WORD-people and next time they may just come out and use the actual word "protectionism." That would send markets spiralling down -- for today's actions see this.