Real American assets went Chinese; financial assets went Arab

Goosing consumption without inducing inflation was achieved by under-pricing Chinese labor while overpricing Arab oil and sustaining American consumption by promoting an asset bubble that would mask the loss of the American worker's purchasing power until the US industrial asset base was sufficiently devastated so that it no longer mattered whether the American consumer could or could not sustain demand. 

The stripping of American real assets has gone to the Chinese while its financial assets have gone to the Arabs. 

The price of oil couldn't rise without triggering price inflation absent the concurrent fall in the price of consumer goods. They couldn't transfer the financial wealth to Arabia without at the same time transfering the real wealth to China, where the mis-priced Chinese labor off-set the mis-priced Arab oil. Both the price of oil and the price of Chinese labor have been too low. 

The collusion of the Arab, Chinese and American governments have enabled this mis-pricing to prevail and to facilitate the transfer of wealth out of the American theater, where the abundance is defended by Constitutional and democratic protections, to the world centers of crony capitalism where the power elite have a free-er hand at managing the world's economic system. 

Inflation is the self-propelling and self-reinforcing rise in the price of factors, not a rise in the price of assets. So long as asset prices rather than factor prices rise, inflation will be kept in check. The key to accomplishing the wealth transfer was to shift from factor inflation to asset inflation by arranging for the very stable low-priced factor of Chinese labor coupled to the very stable, low-priced asset of American money. 

Paul Volker represented the slayer of the dragon of factor inflation that was ignited by the first oil shock; Alan Greenspan represented the champion of asset inflation that enabled the second oil shock. What was Larry Summers thinking? Why did Bob Rubin, Alan Greenspan, Ben Bernanke, Bill Kristol, Milton Friedman & Co. oversee the most massive voluntary transfer of wealth in human history to the oil shieks of Arabia? How warped a Jewish identity can they get? 

The Jews are still the most flagrant violators of God's covenant, the most activist facilitators of the resource curse.