629. Helicopter Ben is Returning

Sometimes I hate when people agree with me. Carol Pepper discusses her views in this article re Ben Bernanke providing more stimulus to the economy before the election. NOT what we need. Are we that desperate that we need to punish the world by lowering our dollar (what happens when we print more money or lower rates) so we can gain more of the world's money (our exports become cheaper and our private sector will expand). Yes, our unemployment is still too high because the world's spending is weak due to the European crisis (Europe is one of largest U.S. importers). So, let's provide them cheaper products (by pennies) and hurt their manufacturers and producers in longer term. Thus is the CURRENCY WARS going on. We saw Europe print money, China lower rates, Australia and England lower rates, etc. Printing money or lowering rates is how a country tries to get an advantage in the trade market and it boosts their economy TEMPORARILY and SHORT-TERM only. Other countries just counter the currency printing similarly to influence EXPORTS. The relationship of a countries GDP factors in Consumer Spending (C), Government Spending (G), Investments in private sector (I) and Net Exports (E-I) where I=Imports. Thus, if you can get the consumers to spend (C) more because unemployment is too high, housing low, etc., and the people are already screaming that government is too big and spending too much (G) and the private sector isn't exactly believing the future is good enough to hire and expand (I), then the only way to increase GDP is to increase net exports (E-I); i.e., GDP=C+G+I+(E-I). How is this done. Manipulate the currency - done by the Central Banks (which included the Federal Reserve). Ben controls the U.S. Central Banks and has the tools to manipulate. So, get ready for the next  spike to OUR economy, later countered by other countries, until everything is again balanced and we all accumulate more debt and punish our future generations more and more. When will the Currency Wars break the world? Or our Country? I haven't a clue. Does a hole we continually dig really end in China? Some believe the gold standard or something similar must return to stabilize the ridiculous currency wars. Mr. James Rickards in his book "Currency Wars, The Making of the Next Global Crisis" appears (haven't finished it yet) to be leading to that conclusion along with an international currency to cover the natural resources (now denominated in dollars). His book is an amazing read and clarifies all my assumptions and theories re the currency wars, trade wars, and natural resource hoarding.