China to raise prices on U.S. consumers by 30%

China devalues U.S. buying power by 30%, but preserves the present value of Chinese-held Treasury Bonds.

This means that by summertime, and certainly by next holiday season, Chinese goods will be 30% more expensive, for the same low-quality merchandise. This may cause some buyers, like Walmart, to look at manufacturing in other countries. And may cause American merchandise to sell better in comparison, thereby decreasing the trade deficit.

The reason for this is an increase in the commodities market, which caused an increase in food prices in China. The government had to cap increases in food prices for the people, and decided instead to pass along the price increases foreign buyers.

Keep in mind that the picture above is deceiving.  While China's economy grew many times faster than the U.S. economy did recently, the Chinese GDP is still 1/3 the U.S. GDP. Many many Chinese continue to live in poverty even though they work.

We only produce 13 trillion a year

I know when we throw around bills with billions and billions then we start talking about trillions and trillions, one becomes numb to the numbers. So let's look at what the United States actually *can* do.

The gross domestic product of the U.S. in 2007, according to Wikipedia, is 13.8 trillion dollars. That's it. No more.

It is for this reason that Obama's insanely large spending bills are cause for revulsion. A few trillion here, a few trillion there. We can't possibly pay this back. Our country will be bankrupt. Our currency will be devalued. Our children will suffer under the yoke of financial slavery. This is not OK. Call your congress-people and senators and just say NO. They need to calm down their pie-in-the-sky plans for nationalizing *everything* and present budgets that are based on reality.

Who is going to pay for these programs when we have chased off all the producers of our society. Do you think that people who make over $250,000 are going to sit still and allow themselves to be victimized? I assure you, they will make other plans. They will adjust. They are smart enough to figure that out.

Who does that leave paying the taxes? YOU. Period.