Pumping the yuan to save the $$?

BushCo's fatal delusion.

It shines the light on an unpleasant fact: "investors" bailed out of those CDOs and freed from SIVs with public money, take the profit from short sales and hot-foot it to China, leaving no money for modest Main Street loans.

Remember?

As Hoovervilles sprouted their ugliness and squalor all over the US, "flight capital" was Hoover's particular concern. Wedded to the Rube Goldberg contraption known as the Gold Standard, he would not budge on unemployment benefits. As the numbers of starving and displaced persons exploded, Hoover was hated and ridiculed. FDR beat him hands down, but in 1933 the inauguration was not 20 January, but March 3.

The Depression deepened during the long interregnum. Hoover attempted to get FDR to sign on to his programme*, in the meantime, but FDR - who had a wall of words for everyone and anyone - kept smilingly mum and met his beaten rival only once.

1933, you will not have forgotten either, was the year of the attempted fascist coup in which Preston Bush participated. There was a lot of talk about "benevolent" dictators and those who didn't fall for Merkin Nazis (i.e.: those funding Nazi militarism and fuelling propaganda mills in European capitals) took FDR's reserve as a sign that he would be just that one. The rest is the big H.

So how does this work when pumping the yuan? The ghost of Herbert Hoover is doing the Rube Goldberg thing with public money, instead of gold.

Rethugs definition of "government" has always been: Heads I win, tails you lose.

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*Based on a fascist canard which still has currency: the "unfairness" of the Versailles Treaty and reparation payments to France and Britain. Both countries needed capital to rebuild, but baldfaced propaganda made it appear necessary for them to accept payment in kind - finished manufactured products - in lieu. Not for nothing had US financiers backed the Rhone military-industrial complex...Reparation payments to France and Britain were immediately applied to the debt these countries had accumulated, during the war, to the US. So you can see for yourself how cessation of payments by Germany would adversely impact the US economy. And how sullen and sulky and vengeful Merkin Fascists were likely to be. Still are. Rage makes them stoopid.