China Has Courage to Protect the Real Economy. USA Lacks the Balls to Do the Same

China has announced that banks who help the real economy, conforming to official state policy, will receive liquidity in a financial crisis that could occur. The Chinese are fed up with speculation and the rise in commodity prices.

These rises in commodity prices, which are screwing American main street as well, are taking a toll on the Chinese economy. It is time that nations everywhere adopt the Chinese policy.

The USA is cowardly in allowing a QE, quantitative easing, that mostly goes to the asset inflation that the Chinese no longer want. QE that works requires regulation of speculation. We lack that regulation.

I have been calling for this regulation for years. Finally, a nation, China of all surprises, is standing up to speculation and asset inflation.

China cannot ban folks from the asset futures markets which are worldwide. They are controlled by the Anglo/American empire. It is the empire that is pushed by Niall Ferguson to be more warlike and evil. But China is seeking to stop this speculation by stopping liquidity from the central bank to the banks that engage in this speculation.

China wants a strong economy at home. The US wants to export war and speculation is a tax that will help wage those wars. The housing bubble was necessary for George Bush to steal oil from Iraq through war.

American central banks would do well to consider punishing speculating banks as China is doing. But here we could also pass a law banning speculation in lots of futures. We already have bans on futures speculation on onions and film making.

So, oil and other foodstuffs should be hands off as well. But our government lacks the courage.

It is a shame. It is robbery. And if you add the low interest rate regime of the Fed, it makes this robbery of main street by high asset prices even more odious. China even wants a fair return for savers.

The issue China faces is that there is a huge demand for credit while GDP is not rising. That means all the borrowing is going into commodity speculation. China is being upfront about it. America lies to her citizens about the very same thing.

America is becoming a terrible nation, with more wars, more speculation, more lawlessness than ever before. Something has to change or main street will suffer. Will China actually help the man on the street?

Let's hope so. Here is the video and transcript discussing this unfolding event in China.

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