439. The exchange rate of Chinese currency (9/30/06)

China has kept the exchange rate of its currency against dollar for more than ten years. The undervalue of Yuen lowers the cost of Chinese products. It created a huge trade deficit for US. That deficit surpassed $200 billions last year. Many economists said that made US losing millions of job opportunity. But to raise the Yuen's value will cause an inflation in US since now so many merchandise are imported from China. That would force the interest rate going upwards. Feds wouldn't allow such thing happening. So China could stick to its fixed exchange rate.

China did raise Yuen's value by 2.1% on 7/21/2005. It coincided to second London bombing. Obviously it was part of Feds' plan in their framing case. The framing case went soured, and further revaluation of Chinese currency postponed.

This March, the huge trade deficit against China caused an angry storm in Capital Hill. A bipartisan bill to slap a 27.5% tariff on all Chinese products would be proposed if China kept on manipulating the currency. But at the end of March, the plans for the bill dropped. Sen.Charles Schumer and Lindsey Graham, the most relentless critics of China announced cease fire. They said they would revive the bill in September if the condition not improved.
The interest of US had to give way to the interest of Feds.

Today is the last day of September. Yuen climbs up 1% and something since then. Far from the 25% to 30% revaluation the senators want. Where is the tariff bill and the voice of lawmakers? None is heard. Because the home prices dropped in August - the first year-over-year decline since 1995. So go away tariff bill. Go away trade deficit. (Even if China likely will swell its trade surplus a 20% this year) Feds need help.

There is a historical current account deficit and trade deficit for US. Oil price has doubled this year. The inflation and high interest rate is unavoidable. Yet the interest rate of 10 year treasury note drops to 4.6%. Compare with the 5.25% of overnight federal fund rate, It's absolutely abnormal. Another strange thing is, I saw rare media reporting any explanation for this absurd phenomenon. Economists have no idea what it is. I here offer people a window how Feds manipulate all these. For their interest in real estate market, they abuse their power to make a mess in economy. As everything is tightened to the extreme point, US is facing a depression.

440. October surprise (10/5/06)

Foely sex scandal; the cover up trouble of Hastert; Rice was pre-warned of 911 attack .... All happened years ago but surge in this October. It's a blackmail. Demos have no ability to do so. The master mind is the Inside Group. They control media and intelligence. When CIA come out to prove they have warned Condoleezza Rice about the coming terror attack two months before 911, we saw the result of the Port Goss' resignation 4 months ago. GOP lost the control of CIA. It now becomes a weapon against themselves.

What do they want this time? A law to expand their police power? (warrantless surveillance), control of DOD? (replace Rumsfelt), or bigger, war on Iran.

They need the approval of Capital Hill on all of these. Republicans control the House and the Senate. So the people having trouble this time are all GOP.

Though media says Demo will win in Mid-term election, it is a propaganda. To put more pressure on GOP, to squeeze more concession from them.

So probably there will be an October surprise. Another terror attack in US, (likely a dirty bomb attack) to justify another war. Like what 911 has done. Thus, GOP will still remain in control. Anyhow, the inside group prefers a war-loving Party.

The October surprise will be a big event, a nice distract for a framed case. I received a letter from an inspecting company in the end of September. It says they are authorized by my insurance company to inspect my house (exterior) in next few weeks. That I should examine the photo ID of their representative if I am home. I think it is part of Feds' October plan. I have my fire policy with that insurance company for 20 years. This is the first time they request an inspection. Feds know I am home all the time. They have no problem to have any ID. The inspecting company may belong to an Inspecting Bureau.

Not a coincidence, my wife is arranged for a China tour between 10/10 to 10/18. Her last tour was in later September last year when a big framed case had been arranged on 9/24/05.
Though she cooperated with Feds she had been planned to death in each framed case.

Beware of an October surprise.