Tuesday, March 8, 2011

The Revolution that Needs to Take Place in China and Germany

China continues to weaken its currency by propping up the dollar. This money printing by the Chinese is creating severe price inflation in the country. It is a mad policy based on the mercantilist notion that a country must prop up its exports. It will create havoc in the country and perhaps lead to civil unrest. All for the short-term benefit of a few elitist exporters.

This mad notion has also taken hold in Germany, though the lessons from the runaway inflation of the Wiemar Republic in combination with a unified currency among the many countries of the European Union, make it impossible for Germany to have its own money printing fest, the average German, through taxation, is in the bizarre situation of supporting  elitist exporters and those i the PIIGS countries who believe that they have a "right" to live off the state (When in fact they are living off of Germany).

Martin Feldstein in today's WSJ comments on the German situation:
While hard-working German voters may resent the transfer of their tax money to other countries that enjoy earlier retirement and shorter work weeks, the German business community supports paying taxes to preserve the euro because it recognizes that German businesses benefit from the fixed exchange rate that prevents other euro-zone countries from competing with Germany by devaluing their currencies.

One of these days the Chinese and Germans may wake up to the mad central planning of their leaders that is causing nothing but pain, suffering and a lowered standard of living across their countries. If the masses do wake up and overthrow their mad leaders, through the voting box or via a march to physically takeover the headquarters of the central planners, it will be a grand day indeed, if the revolutionaries keep in mind that private property, the rule of law, free markets and a private gold standard are the keys to a prosperous country.

Revolution is in the air. This is the revolution I would like to see in these two great nations.

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