Monetization in USA creates jobs in Asia

[Atash Hagmahani]

My stepmother the investment banker and I have gone around and around on this. I claim that debasing the national currency does NOT cause offshoring to reverse, but rather, accelerates it.

Marc Faber agrees with me:

http://www.lewrockwell.com/faber/faber77.1.html

Over the last two years we eased massively in the US and where did the growth take place? In Asia".

"So when we talk about job creation, do you think that Intel or a small businessman will hire more people in the US because of further monetary printing?" he asked.

"No! they will build factories in Asia and hire poeple in Asia and all the monetary policies in the US create mis-allocation of capital and unintended consequences," Faber said.

Asked by the Bloomberg anchor if a bubble in Treasuries was one of the unintended consequences, Faber said: The Treasury bonds markets and especially the 10-year and 30-year bonds have been rallying for nearly 30 years, since 1981, and we are close to all-time lows in Treasury yields.

"In my view over the next 10 years, Treasuries will be a disaster for investors," he said.

Referring to the Fed's Chairman speech last Friday, the famed investor said: "If the economy weakens, and Mr Bernanke has said it, he has emphasized that he is going to print money. So, eventually, and last Friday was a good indicator – what happened is that bonds sunk and stocks went up. Eventually the bond market will see through the money printing – that will eventually lead to inflation somewhere in the system".

He calls the consequences "unintended". I think they are intended. Basically what happens is that the Federal Reserve creates new money to loan to transnational corporations to buy products in Asia to sell here. The net effect is investment in Asia.

This is exactly the policy that has been endorsed by the globalists.

[Mike]

There are lots of people like your stepmother.  It is best to just find common ground.  How about planting a few primroses on the path to your door and talking about that?

re; monetization going to the developing world

What would you do if you had $500,000 to invest and the world were your oyster?

I would compare distressed real estate in the US, then compare it to Latin America and would probably wind up in Latin America.

I do think there will be a few deals in the US, but they won't be easy.