637. Fuel for Helicopter Ben's Fire

"Manufacturing growth slows, labor market struggling" highlights Reuters here. Just what Mr. Bernanke was looking for to pop the cork on his $267B Twist expansion. The "fixed deck" has been chosen, the cards marked, and we wait only for the deal so we can play our hands -- or have our hands played for us. Currency War III started in 2010 and it's Ben's turn to deal after some of the other countries have already dealt their rate cuts or printed money. Our exports have become more expensive and spending worldwide has been reduced. Thus, our economy gets a double whammy. Companies will NOT hire in this environment. Now you can stimulate the companies by cutting the capital gains tax to put it in line with the other countries so our companies can afford the increased costs, or you can devalue the dollar to make our exports cheaper abroad. Well, since the world is hurting, the latter doesn't make much sense since they can't afford to spend more even on THEIR manufactured products. I doubt if anybody will accumulate debt. Thus, purchasing power is stagnant. However, Ben can not make the decision on corporate capital gains cuts. Guess who needs to? You got it, the anointed one and his partner in crime the Democratic led Senate. This will never happen. So, we will see Ben spring and we will see the market respond upwards and then crater later before fall because nobody abroad can spend more. thanks Ben. Thanks OBlunder. Just once can you do something right and make this prediction wrong?