China Officially Raises The Bar On Currency Accountability

Hat tip to Mark at Strategic Energy Research and Capital for alerting me to this news report. 

"Because the United States' issuance of dollars is out of control and international commodity prices are continuing to rise, China is being attacked by imported inflation. The uncertainties of this are causing firms big problems," Chen was quoted as saying by the official Xinhua news agency.

Here's the actual reuters news report: Link

In the context of Tim Geithner's agenda being thoroughly squashed at the G20 meeting this past weekend, this official statement from the Chinese Government overtly conveys that China will implement monetary and financial policies which will protect its own economic interests. This is a direct and visible repudiation of the U.S. Government's attempt to exert influence on China's trade/monetary policies.

China has been quietly and diplomatically brushing off U.S. geopolitical hegemony dating back to four years ago when Bernanke and Henry Paulson went over in a determined attempt to "strong-arm" the Chinese into obeying the U.S. You can read about that here:  Link

What are the ramifications?  One glimpse of the "out of control" money printing by the Fed/Treasury is in the current spike in commodity prices, which will soon translate into much higher food prices.  Now imagine what the conditions will look like in this country once China inevitably demands that its own currency is to be used in all trade between the U.S. and China.  In other words, don't get used to the prices you are currently paying at Walmart and Best Buy.