The New World Order of the Chinese is rushing forwards during this global trade retraction while the Old World Order holds many secret meetings, hoping to harness the Chinese and control world populations. The delusions of the Old World Order gang are actually hilarious. The only way they can keep their wealth is to undermine their imperial home base, the US/UK global empire. So, this is what they do! Imagine that.
First, despite a global downturn, or maybe even, thanks to the global downturn, China’s diplomacy surges ahead. The US media giants have, as per usual, studiously refused to look at the news that Taiwan and China are rapidly reaching unity. Like when first, the Berlin Wall fell, then, without consulting at all with the US, Germany suddenly reunited, so it is here: China’s big breakthrough when the KMT opposition leader suddenly took a phone call from Hu, has led to the election of the KMT on a platform of closer relations with China and now, the bid Official Visit.
Hu has a consummately astute and careful diplomatic organization which is tremendously successful. Even as the US tries to corral the world into insulting China all the time, for example, blasting China for censorship while Europe not only has very severe censorship, authors, politicians, historians, filmakers, all sorts of people are even put in prison or forbidden travel due to unpopular views about religions of various sorts.
Meanwhile, Western media hammers the Chinese government for suppression of religious conversations? Or how about the US hammering on China for being mean to the Tibetans while at the same time, butchering Muslims on the borders of China! As well as the US refusing to punish itself for violating a host of international laws concerning torture and warmongering? No, the holier than thou machine of the West cranks out continuous attacks on China. I fail to see much difference, personally.
That is, the fading remnants of our own First Amendment rights of free speech are rapidly being eroded as it has been totally destroyed, in Europe. Our Second and Fourth Amendment rights are also heading down the tubes, too. We can’t accuse the Chinese of torture, for example, without looking like total fools.
Since there is very little ideological differences between the US and the Chinese communists [US right wingers are more communistic than the Chinese, even] the thing we must examine is what is working for the Chinese as well as what is failing for the US.
Chinese top political advisor Jia Qinglin met with Taiwan-based Kuomintang (KMT) Chairman Wu Poh-hsiung and his delegation at the Great Hall of the People in Beijing Monday afternoon.
Right now, the US is so embarrassed by our Presidents being utter puppets of our allies, they no longer have big, fancy diplomatic events. The greater the power of the alien leader has over our puppets, the quieter the receptions they expect when slipping over here to give orders. Case in point: Israel’s latest visit.
Jia, chairman of the National Committee of the Chinese People’s Political Consultative Conference, said the cross-Straits relationship had made breakthroughs after a historic turning point in the past year.
Actually, this goes back to 2005 which was three years ago. As usual, I was right on top of things back then and correctly analyzed it:
- Wow. The Chinese leadership is moving at lightning speed now. They disciplined the Japanese and now Taiwan has seen the light and is learning to kow tow properly. Of course, the Chinese leaders want a happy union and as little blut und drang as possible so they will be most accommodating.
- This is an IMPORTANT MOMENT IN HISTORY. Mark this day down on a calendar. The Nationalist Party narrowly lost the last election. This election was as disputed as the Gore/Bush election here in America. It is a clear sign that Taiwan is utterly divided in serious ways. A divided nation is a weak nation.
Instead of being smart, the US diplomats picked up speed in criticizing China over human rights issues while simultaneously, trying to use China to get the rich Bilderberg gang, richer. Here is an old story and cartoon I did a year later:
The first pandas were brought over to America to demonstrate joint friendship and a desire to form alliances. But now this is all gone and we are trying to shove the entire planet into eternal wars with all of Muslim and all Chinese as well as kicking in the Russians, Venezuelans and a host of other people, seemingly endless list.
The American zoos are under the impression they were making a business deal to make easy money for themselves sort of like how we kidnap killer whales and put them into clown acts at aquariums. The Chinese have stringent rules for their cuddly diplomats so they can’t be forced to dance or jump through hoops or in other ways, entertain drooling masses of screaming children.
China tried sending a panda to Taiwan and the previous government rejected it. But they had an election and the KMT won and immediately, asked for the Diplomatic Panda and got it. Here is another article I wrote about the impending merger of Taiwan with China: January 2008: Diplomacy: Taiwan And China Will Join In This Decade!
Back to the original article here:
Improved relations had yielded practical benefits for people on both sides, and cross-Straits peace and stability had been highly praised by the international community, said Jia.
The KMT and the Communist Party of China (CPC) had shouldered greater responsibility in promoting the cross-Straits relationship, said Jia, also member of the Standing Committee of the CPC Central Committee Political Bureau.
Just as when Germany reunited, this utterly changed the balance of powers in Europe, so it is in Asia: Japan and South Korea fear the impending Chinese union and instinctively know, that China will rule the roost just as Germany now dominates all of Europe.
I strongly suspect the European Union as a ‘state’ or rather, a ‘confederation’ was rushed through by alarmed neighbors of Germany. This way, Germany’s potential power is neutralized and watered down by a host of smaller economic units. This can’t be done to China. China dwarfs its neighbors in all potential realms: military, financial, industrial and population levels all are immensely greater if we project into the future. China is, during this depression, flexing its muscles:
By Ambrose Evans-Pritchard
Richard Fisher, president of the Dallas Federal Reserve Bank, said: “Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature.”
HAHAHA. The stupid Federal Reserve official who wants to cut US social services and increase military spending, is being called on the carpet by his Chinese masters! HAHAHA.
“I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States,” he told the Wall Street Journal.
No kidding! These are the sorts of questions angry fathers ask wild spending sons who come to beg for a bigger allowance! These are the questions powerful bankers demand answers to from third world nations! His recent trip to the Far East appears to have been a stark reminder that Asia’s “Confucian” culture of right action does not look kindly on the insouciant policy of printing money by Anglo-Saxons.
This is unfortunate because Evans-Prichard is the son of the British Empire, that rotting carcass offshore from France. China invented paper money. China also discovered that this permitted governments to spend more on wars. And China discovered, this led to inflation and the collapse of the economy [inflation is very evil in the long run!]. All this, while the Brits were still running around, fighting William the Bastard and losing in 1066 AD.
Mr Fisher, the Fed’s leading hawk, was a fierce opponent of the original decision to buy Treasury debt, fearing that it would lead to a blurring of the line between fiscal and monetary policy – and could all too easily degenerate into Argentine-style financing of uncontrolled spending.
He is correct in his belief but stupid when it comes to what we must cut. Running immense deficits to pay for distant wars is insanity. He thinks it is hunky-dory. Today, at the Berlin Memorial Day parade here in NY, I chatted with a severely brain-damaged young man who was a classmate of my son. He used to be very athletic and participated in sports and other school activities. He went off to Iraq, got blown up and now is barely able to lift his head and has to use oxygen bottles to stay alive.
He costs the government over a million a year to keep alive. I know how this works: over time, the government will be disgusted that he still lives, hasn’t committed suicide or died of drugs or alcoholism. Once his poor mom gets too frail to keep up caring for him, he will end up on the streets except he won’t stay alive for even a week.
This young man should have led a productive life and had a family and built himself a house on his mother’s farm and done all the things healthy people do. All the chatter I hear lately is how can we get rid of these people who can’t work, etc. This is horrifying. By the way, someone else is going to China and smiling and making smooching noises at the communists:
Yes, our very own top elites, those guys who own Congress, are the bestest of buddies for the Communist Chinese leaders! So much for all our domestic propaganda about how mean the Chinese are and how dangerous it is to do business with the commies.
Beijing finally lit the fuse.
HAHAHA. First, the Japanese did the ‘carry trade’ number to us, now the Chinese?
By announcing the launch of a new market for dollar-denominated bonds that are issued by non-financial firms, China has now taken a major step toward modernizing its capital markets. All planned out, long ago. The move hasn’t made much of a splash here in the United States. HAHAHA…isn’t our media a wonder? Free press…pffft—But I was in China, heading my annual investment tour of that country, when the announcement was made. And believe me when I tell you that China’s company executives, investors and government officials fully understand the implications of what’s just been done….
Duh. They immediately understood because they know about the 50 Year Plan. They were probably ecstatic, the government was green-lighting this particular stage of the game.
Given what we know about China’s global natural-resource-acquisition ambitions, the first entrants into this new market will likely be one or more of China’s huge natural-resource concerns that are presently scouring the globe, creating captive supplies of the very commodities that will be necessary to ensure China’s future growth. Intelligence at work, I may add. My experience here suggests that high-tech and infrastructure companies will follow almost immediately. This is why GE was visiting. Many of those firms may head straight for Taiwan, —see all my old China/Taiwan articles predicting this—thanks to newly inked agreements that make it easier for Mainland China companies to invest across the Taiwan Straits for the first time in decades. After that, these firms will direct their appetites for acquisitions elsewhere around the world….
United, they will dominate everyone.
Call it the “Mother of All Carry Trades” – only this time it will be yuan-based, instead of yen-based….
The Japanese will restart their part of the carry trade. Both expect the US to run much higher interest rates in the near future due to too much money printing in the Fed Reserve. Oil and gold are climbing, gold is assailing the $1,000 an ounce level this last month.
First, it’s conceivable that the sheer volume of dollar-denominated bonds could indirectly prop up the U.S. dollar. Not only would that potentially wreck traders who are betting that it’s headed the other way, it could actually solidify U.S. and global markets that are still searching for an anchor. By implication, this could also wreck the “gold bugs” who are betting the farm, instead of investing in the precious metal as part of a disciplined investment strategy.
Um, this guy is STUPID. HAHAHA. The price of gold was very flat during the Japanese Bubble years. Then, during the beginning of the Japanese carry trade, gold still was flat. But when the Asian Currency Crisis hit, gold began to climb and with the ZIRP system, it rose higher and higher and is going for $1,000 again.
The resumption of any carry trade will certainly cause things to move again but I suspect the US will not be the happy recipient of this loot. Namely, we are rapidly becoming tapped out. All we want now are loans for our empire so we can go to war.
Second, for those on Wall Street who continue to believe they are the “masters of the universe,” the strength and ferocity with which China’s dollar-denominated bond market may develop will probably come as a rude shock. Not only are the vast majority of Wall Street firms likely to be cut out of the underwriting process, but chances are very good that they’ll probably be relegated to the back seat when it comes time to pony up in the never-ending game of global one-upmanship.
When Zeng said to me, ‘I be bank’, long, long ago, I was amused. Now, I am grim. China decided not to be just another player in the international financial games, they collectively decided, they would RUN the world’s ENTIRE financial system and be the hub of all banking….back in 1984. Not recently. This stunning success in this long range game plan of there still amazes me. They actually are doing it.
And third, depending on the ultimate size of this new bond market, the prices of resource-based companies and commodities could go sharply higher as investors realize there is a potentially unlimited source of funding chasing relatively few quality assets. To the extent that Chinese companies mirror Beijing’s plans for the future, the same will be true for technology, medical and infrastructure plays.
This carry trade money will not flow to the US. This capitalization process will cause money to flow into the hands of the Chinese. The Chinese don’t mind inviting the head of GE to negotiate surrender. They want these guys to help them in implementing their 50 Year Plan. The rewards are great. Anyone assisting the communists get whatever bonuses they desire. They get to write their own checks and being creepy gnomes, they jump to do this. So they collect immense fortunes while throwing away all the tools, controls, powers and systems that built their home bases, long ago. And they really imagine, the Chinese will pet them and protect them, later.
Below is a chart I heavily modified:
Go to bottom of page to see enlarged graph.
The post-Nixon floating fiat currency regime has stabilized in a downward spiral. That is, everyone is seeking to weaken their currencies vis a vis the US for trade advantage but this is now folding into itself like a Möbius strip run over by a dump truck.YouTube – moebius animation 5
There was no ‘carry trade’ in 1971. There was the ‘get the gold from Fort Knox’ system which is why the US terminated the gold standard. The value of the yen increased as we see from the dollar/yen graph above.
OK: if the author is correct and a carry trade focused on China will develop, how is this going to kill gold prices? See what happens when we don’t look at the data. While the yen was stable, with only a small change vis a vis the dollar [but dangerous variations!] the price of gold as valued in yen, rose relentlessly during the carry trade era.
In the decades following World War II, Japan implemented stringent tariffs and policies to encourage people to save their income. With more money in banks, loans and credit became easier to obtain, and with Japan running large trade surpluses, the yen appreciated against foreign currencies. This allowed local companies to invest in capital resources much more easily than their competitors overseas, which reduced the price of Japanese-made goods and widened the trade surplus further. And, with the yen appreciating, financial assets became very lucrative.
With so much money readily available for investment, speculation was inevitable, particularly in the Tokyo Stock Exchange and the real estatemarket. The Nikkei stock index hit its all-time high on December 29, 1989 when it reached an intra-day high of 38,957.44 before closing at 38,915.87. Additionally, banks granted increasingly risky loans.
Prices were highest in Tokyo’s Ginza district in 1989, with choice properties fetching over 100 million yen (approximately $1 million US dollars) per square meter ($93,000 per square foot). Prices were only marginally less in other large business districts of Tokyo. By 2004, prime “A” property in Tokyo’s financial districts had slumped to less than 1 percent of its peak, and Tokyo’s residential homes were less than a tenth of their peak, but still managed to be listed as the most expensive in the world until being surpassed in the late 2000s by Moscow and other upstarts. Tens of trillions of dollars worth were wiped out with the combined collapse of the Tokyo stock and real estate markets. Only in 2007 had property prices begun to rise; however, they began to fall in late 2008 due to the financial crisis.
As exports soared, Japan’s domestic markets sat mired in deep depression. A 90% loss in value vis a vis the bubble’s easy credit era. Think this isn’t our own fate? Of course, it can be and probably will be. Japan could declare bankruptcy. After all, its debts are immense. It lost trillions in bad loans. But unlike the US, it has one thing running in the green all the time except this year: trade. And trade is the key! If you run a trade profit surplus, you can run governments in the red.
The US and UK are experimenting with running the trade and the government in the red at the same time. Not a sane choice.
China will ease government controls this year to stimulate private-sector investment amid an economic slowdown, the top economic planner said in an online statement Monday.
The government would narrow the scope of projects requiring approval “by the maximum extent,” the National Development and Reform Commission said in its 2009 plan on deepening economic reforms….
The power of approval will also be transferred to lower government levels to spur private investment.
The government encourages the use of non-governmental capital in such key sectors as petroleum, railways, power generation, telecommunications and public facilities.
See? As the US is forced to tighten standards and pass laws regulating things, China is loosening up. Which is what you do in a depression. The US must tighten up because this is what you do after creating massive bubbles.
The unnamed banks from France and Japan are expected to set up their Chinese mainland headquarters in Shanghai to expand their China business, said Yan Qingmin, head of the Shanghai Bureau of the China Banking Regulatory Commission, on Saturday.
The city has aims to attract more institutions to boost the city’s global financial center ambitions.
”Shanghai is ready to be a major financial hub with its concentration of banking, non-banking and market infrastructure facilities,” Yan said.
Zeng, the guy who told me, ‘I be bank!’ is one of the Shanghai gang, the guys who basically decided, after hanging out in Manhattan, they wanted to take Manhattan and Staten Island, too. And I expect, when the WTC II is finally finished, they will take over that, too. And not let anyone wreck it, too.
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