Media accounts of the incident took a somewhat puzzled tone concerning the timing of the Premier’s statements. For our part, we will not pretend to know the exact motivation behind the statement itself and the timing. However, we suspect that the Premier’s comments are the first stage of a thoroughly calculated plan with regards to the the unfolding global Situation.

First of all, we expect that the Chinese economy will continue to deteriorate at a rather alarming pace. The large surplus that the Chinese Government has enjoyed for so many years will be reduced quite dramatically. Occurring concomitantly will be the necessity for a large Chinese stimulus package, one that will dwarf the faux-spending measures that have already been announced.

Secondly, the United States Government will continue to spend money as quickly as possible. President Obama will certainly request the additional $250B that exist in the Budget for shoring up Bank’s balance sheets. Now, we have conducted a thorough assessment of the banking industry and the capital levels of Major Institutions, and in our best estimation can say that the US Banking Industry requires a minimum of an additional One Trillion Dollars to bring back some degree of solvency. In other words “We ain’t seen nothin yet”.

Obviously, the two situations above present conflicting realities for both China and the US. China will face rising internal pressures to spend its money domestically at a time when the US is attempting to borrow the money to recapitalize its insolvent banking system. We assume that history (of human civilization) will repeat itself, and the Debtor nation will ultimately choose to debase its currency as a means of managing its obligations. Then again, perhaps Mrs. Clinton will be able to talk our way out of it.