It is not interest rates...it is Chinese that controls our financial future

Awhile ago we discussed the fact that inflation was being kept in check by the Chinese buying our bonds and keeping our interest rates artificially low.  They did this so they could get our consumers (you and me) to buy more and more things that the Chinese manufactured.  They kept their currency artificially low and no one cared about the massive trade deficit.  No one cared that the Federal Reserve was raising interest rates and the mortgage rates were falling because the Chinese were buying our paper.  We did not care because we wanted more and more things at lower and lower prices.

No one cared back then that the Federal Reserve was irrelevant!  Now, however, that the Fed may cut rates and the only effect it will have on our economy is a temporary up tick in the stock market.  Just long enough for the institutional investor to take profits and leave the poor individual holding the bag...once again!  Don't feel sorry for the individual investor, if it was not for their greed they would have taken their profits as well.    If the Fed cuts rates and it does not solve the problem, then get ready for a rapid decline in home and stock prices.

While everyone was watching the Chinese have conquered their opponent without firing a shot.  This is an ancient strategy that worked as well today as it did 4,000 years ago.  They achieved this by utilizing their more powerful opponents greed against them.  I am not saying the Chinese are bad or wrong in doing what they are doing, read the Entrepreneurial Way by author and consultant Marc Gilenson and you will see the strategy and tactic is one used by many entrepreneurs.

Now our government is trying to get the Chinese to increase the value of their currency in order to decrease the trade deficit and increasing the costs of many of the goods we buy...Inflation!  The Chinese government has realized that they can't control the growth of a free market economy through government mandate, they must slow demand for their products.  They can do this buy slowing our growth, by selling off some of their 900 BILLION dollars of American bonds, or not buying more bonds...Increased interest rates (no matter what the Fed does)!

Don't worry say the pundits... we are not heading towards the abyss called recession.  No they say our economy is fundamentally strong!  They are correct, corporate America has successfully transitioned to a global organization that is no longer dependent on the American consumer.

It's not too late, we can still take back control of our economy.  It will take Entrepreneurs that are willing to create products, pay their people well, take less for themselves and live within our means.  It will take real Entrepreneurs.  Entrepreneurs with less than two million in sales and under 10 employees to put that American spirit to work again.  It may even take some "John Wayne" Entrepreneurs!

Let me know how you or someone you know is helping us take control of our economic destiny!