If a government is just printing money like China was said to be it is hard to view any activity with regard to monetary policy as being motivated by any other means than this.
Secondary proof that China manipulates monetary policy is that China has always had a strong GNP and that makes one wonder how much changes to monetary policy it has really needed to make. Thereby it would again seem that its changes to monetary policy would have an ulterior motive to them; they give Chinese companies a Government sponsored reason to welch on deals with United States Companies after US companies have done virtually everything required to receive payment for their sale.
Something just does not seem right concerning this. Is this indeed China's way of playing tit for tat with America over allegations of currency manipulation? And I do not indeed deny that America does make money from currency manipulation. But I would instead say that currency manipulation is indeed an inherent flaw of the commodities market and futures trading.
Thomas Paul Murphy
Copyright 2012 Thomas Paul Murphy
Originally published on 02 09 2012 at: Www.themilwaukeeandwisconsinnews.blogspot.com