here is my simple one two punch theory to the current world economy in currency terms. (sorry if this is completely wrong as i have no extensive knowledge regarding the major factors that control the economy, but more or less my logic) also, i really need to get some rest, there are more birds on the arrow, either i forgot about them or just cant see it. my beaker is only 1.4L most things come and goes.
world currency is circular in nature. everything relates to one another. china yen = cheaper than perceived value, japanese yen = cheaper than perceived value. eur two years ago = perceived value. usd 2 years ago = perceived value. aussie dollar currently = perceived value (i may be wrong with these, so please correct me if im wrong, so i can logically correct myself)
since china and japan is not gonna raise their currency in value, in order for Benanke to print free money and the most of the world seeing it the same, it has to knock down euro to be cheaper than perceived value. sorry aussie, you are next, but the European croissant is enough for dessert for now.
most sees the news of how badly greece, ireland is in debt, but who lend the money to these countries in the first place??? much like a creditcard we carry in our wallet, we currently have 5k in debt on it, but our creditcard company only ask for 20 bucks in monthly payments plus interest, but imagine if the credit card company one day knocking on your door and asked for all the five K back, can we pay for it all in one lump sum, we cant.
the united states as a country cant do this directly (asking for the lump sum) but banks reside in teh united states can (fractual in nature compared to a credit card company and people). we may perceive a few banks failing as a bad thing, but the benefit to the country in the long term is so great as it gives them a reason to s**t on the euro.
another bird benanke have on his golden arrow will be fear, its fear mixed with shorting that caused euro's 2 year back slide( cant be so easily done with money alone, money is only the small snowballl to get it rolling).
since china, japan, eur is now all cheaper in value than its worth, cant united states print out money but still retain its actually worth relatively to the world??
now what does benanke do with these so called free money. play it in the stock market, oh, but being a smartee pants that he is, he flash crashed the market first to know exactly his probability of win/lose (also how much he needs to keep the market a float, only 7 billion at once if able to bring DOW to its knees, we spend that much in a day on the Iraq war more or less).
so crash the economy had two benefit for him in the long run. 1: reason to s**t on Europe through debt collection. 2: create fear in the herd to have a reason for government intervention in the stock market. (if we can make millions in a decade starting from 100k, how much money do you think the government have) edit: actually i see three so far: 3 being buying these so called "failing" banks' stock at a HUGE discount and have zero chance of losing money.
oh but the fun for benanke doesnt stop there, we earned those 100k hard working for someone else, his playing money doesnt stop there, it FREE(relative to the world).
oh wait wait wait, wait for it, what is this, another bird i can put on my golden arrow. many think inflation is bad, but is it so bad??? its bad for those who have cash and no debt, but im sorry, most people have morgages and car payments and credit debt. by keeping the interest down, they make sure most can pay back the debt with less effort. but since world is fractual in nature, does the usa have debt as well, on hell yes we do. why dont we s**t on china too by paying back all our debt that we made in the market with our free money and inflate the crap out of our money and pay them back all the trillions in debt relatively free.
oh wait, whats the next bird that i see on the horizon, oh, isnt this nice, world market is related. oh garsh darn, i made trillions, i wonder who lost all those money, ehhh who cares, lets pay all our debt back, boost our economy and feed the masses(we need enough happy rats to power our lightbulbs), , pay back our debt with free money.
oh wait, what is this i have in my other hand, is this a F'ing bazooka? so i have 12 birds on one arrow and a F'ing bazooka in the other. oh, look at those other hunters with their small bb guns, all they can ever do is feed on the guts of my birds when im done cleaning them.
i had fun writing this story. if its completely wrong, feel free to read it as a comic relief and all i ask for is some good laughs across the globe. and i apologize if this offend anyone's country. i think of myself not as chinese or american, but earthling. ^.^
edit: before i go to sleep, i want to add something, when those aliens do come to earth and is revealed to the public, i will consider myself an universian, until then, earthling is what i perceive myself as. oh gosh, i am really tempted to write out my theories as to why alien exists. maybe another time if some people are interested in my crazy theories/stories.
but most importantly, tell me if i sound crazy?? my view changed on life just about a month ago, since then, crazy theories pop into my head.