It should be of interest to OROGs and their friends that since the beginning of the calendar year, the policies of the central government and those in charge of the exchequer...the Federal Reserve Bank and the United States Treasury Department....have managed to substantially devalue the American dollar in its standing against the Mexican Peso and the Canadian Dollar.
It should be noted that while the spotlight is shone about 96% of the time on the Red Chinese situation, in terms of economic inter-relations and currency comparisons, Mexico and Canada, with a combined population of one - ninth of Red China's population, actually do double the import/export combined value activity with the United States as Red China does.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The total import / export activity between Red China and the United States comes up to almost exactly 500,000,000,000 USD (Five hundred billion dollars- American Currency)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The total import / export activity between the United States of America and the Republic of Mexico and the Dominion of Canada falls thus:
Mexico import/export with the United States: 490,000,000,000 (four hundred and ninety billion dollars - American Currency
Canada import/export with the United States: 610,000,000,000 (six hundred and ten billion dollars - American Currency.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Total Mexican and Canadian trade with USA: 1,100,000,000,000 (one trillion, and one hundred billion dollars - American Currency,
(this note: figures came out very, very close to the rounding entered here. They have been simplified for the purpose of mental digestion. Also, the rounding favoured slightly the Red Chinese figures because El Gringo Viejo did not want to be accused of "Trying to make Red China look bad". Actually Red China does that all by itself.)
ooo000OOO000ooo
Therefore, monetary policy that affects our truly closest trading partners affects them and us much more than that activity that is conducted between the Peoples' Republic of China and the United States of America. And now....with Quantitative Easing XXXVII or whatever edition....the American dollar, since the 1st of January has managed to lose 3% of its value against the more disciplined budgetary practices of Canada and Mexico. Both currencies have increased by almost precisely equivalent amounts....with the Mexican Peso being slightly stronger....as the Quadroika named above either planned or did not plan, depending upon the day they are asked about the phenomenae.
The Japanese have taken note of what the Quadroika is up to, and they immediately began their own Quantitative Easing CCDXXVI that has kept them in a form of economic suspended animation for the past 20 years. Their currency has depreciated against the American dollar by about 15% during the last three or four months.
Almost all, if not all, the increase in the world's oil market price has been due to the passive devaluation of the dollar brought on by GLOB's Quantitative Easing, In terms of oil's price per ounce of gold....the price has remained the same or gone down a bit.
Try explaining that to the typical Obama voter!
El Gringo Viejo
