Why Paul Tudor Jones Must Have LOVED Bernanke's Speech Last Night

Photo: Source: Financial World, July 11, 1989 Photograph by Alex Quesada/Matrix

Ben Bernanke just gave a speech about the same thing legendary hedge fund manager Paul Tudor Jones dedicated his entire recent letter to investors to.China as a currency manipulator.

In his speech last night, Bernanke accused China of throwing a monkey wrench into the global recovery and blamed China for slow global growth and a potential “End to the Tepid U.S. Recovery,” as Mish Shedlock puts it.

And as MarketWatch put it:

Federal Reserve Chairman Ben Bernanke put aside traditional central bank niceties and launched a direct attack on the slow pace of China’s steps to strengthen its currency.

PTJ said as much late last month, when he wrote this:

What is remarkable is the lack of any concrete policy initiative in the US to change this. For several years, the US Treasury has threatened to name China as a currency manipulator 2 but has always found a basis for avoidance.

If, as Mish Shedlock predicts, Congress takes Bernanke’s speech as a call to call China a currency manipulator, it’d probably make PTJ a very happy man, considering that he called for a re-evaluation of Chinese currency just last month.

The Chinese have set the RMB/USD peg artificially low, he wrote, and it’s inevitable that soon the US, the main buyer of China’s exported goods, will no longer be able to afford them – because, he writes, “China’s export strategy is completely unsustainable.”

HOPEFULLY, Bernanke’s speech will go somewhere and it will make PTJ want to stay in the biz a little bit longer. In which case, thank you Bernanke! 

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