US Credit Rating Falls While China’s Rating Soars

As the US rushes towards a total crash into the debt wall, the rest of the world struggles with the effects of the flood of US trade and credit dollars created in the last 40 years.  This made everyone else richer but the deteriorating quality of this flood of free trade dollars has caused economic chaos now that China is no longer simply holding FOREX dollars.  One thing is certain, a huge amount of trade dollars are being held in the gold countersink as gold rises to over $1500 an once based on fears the US will finally blow up its own self.  

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This gold dead weight actually buoys up the value of the dollars used in business across the planet by isolating these dollars where they cease circulating.  This is exactly like how FOREX holdings operate: they sequester currency so it ceases to circulate, thus holding up the value of the dollar!  The dollar continues to lose value vis a vis gold but gains value vis a vis export/import items!  Slowly, gold is resuming its role as a counterbalance to money printing in this very odd way.

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Of course, there isn’t enough gold in the world to sequester the US trade deficit which is running at over $50 billion a month.  That would come to $600 billion a year, a totally unacceptable problem.  The US is seeing furious debate about adding even more to our national debt even though the main problem moving our nation into default lies not in the government overspending, overspending on maintaining a military empire that loses money every day…it comes from the red ink in trade.

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Part of the lunacy of the present debate is the number of American manufacturing jobs tied to export markets: 40%.  This is all RED INK jobs.  That is, every export fails totally to match imports so these export jobs are losses, not gains.  The more export jobs we have, the worse the trade deficit.  When only 5% of Americans worked at export jobs, we had a trade deficit less than $1 billion.  With nearly half of our manufacturing jobs aimed at exports, we have a deficit over half a trillion a year.

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This bleeding of jobs, losing several million manufacturing jobs while raising the trade deficit from $1 billion in losses to half a trillion losses a year, is the fundamental basis of what is killing our economy.  The entire debate about all of this in our media, in DC, in the banking circles, with the Bilderberg billionaires, is all about government spending and taxes, not the real problem.  Obama has frantically been scouring the earth, looking to create even more trade red ink, signing free trade deals with say, South Korea.

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First, here is the news about how wretched our politics has become:  Obama shatters fundraising goal with $86M – USATODAY.com

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Obama campaign manager Jim Messina announced the totals Wednesday and called the early effort a “monumental achievement.” He said the team is using the money to build Obama’s campaign infrastructure coast to coast.  Messina said more than 552,000 donors helped fill Obama’s coffers, including 260,000 who gave for the first time. The average donation: $69, he said.

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Take 1,000 $10 donations and mix this in with a few dozen $1,000 donations and it looks like Obama is very popular with the masses.  Unfortunately, the $1,000 donations buy the regard and love of Obama while the $10 ones buy nothing.  So even if thousands and thousands of voters give $10 each, they get near zero influence compared to a dozen big donors.  This is how AIPAC operates.  They fund raise and hand it over in a bundle to the politicians who then think they are running for the Knesset, not Congress.

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Obama will preserve some of our social services which is more than what the GOP plans to do!  Meanwhile, as a reminder of how cutting social services and firing government workers leads towards revolutions, Greece set to default on massive debt burden, European leaders concede  while in Italy money supply plunge flashes red warning signals.  This month there have been riots in Ireland and bombs going off while  Ireland’s debt Cut to Junk by Moody’s as EU Seeks to Contain Crisis .  While in Japan, as the Nuclear Dragon eats relentlessly away at the environment and  heat deaths quadruple especially with the elderly,  Kan’s pursuit of nuclear station-free Japan could deal serious blow to business.  And Italy sold five-year bonds at the highest yield in three years and the government was forced to call a confidence vote on an austerity package that aimed to show the nation can tame Europe’s second-largest debt burden.

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In all first world economies, it is all about cutting back spending and firing workers.  Cutting social services while depressing incomes of the middle and lower classes.  This is classic in the older, Victorian-style of economic pendulum swings whereby everyone gets jobs and gets richer during bubbles and then, when these crash, everyone has to starve or die except the very rich who have money and then can buy up all assets and property at cheaper prices.

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This, in turn, always leads to riots, insurrections and revolutions as well as major wars.  To stop this pendulum swinging, even beginning with WWI, it was decided that there should be graduated income taxes whereby, the richer you are, the more you pay in percentage in taxes.  This, in turn, prevented accumulations of too much wealth at the top and recirculated wealth downwards which then would percolate back upwards again, keeping the system going without going into depressions every 20  years.

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This system has been wrecked by tax cutting during war time in the US.  And destroyed by the US wealthy class when they foisted free trade on the nation.  By putting the nation perpetually into trade red ink, they relentlessly destroyed the finances of the middle and lower classes and at the same time, cut their own taxes so now the rich pay a smaller percentage of their income in taxes than the middle class.   This, in turn, has made them much richer and when things go bad, it encourages them to hide or hoard their wealth by turning it into gold holdings or moving it overseas so it can’t be taxed during downturns to revive the general economy.

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President Obama storms out of debt negotiation meeting, warns GOP not to ‘call my bluff’ when Cantor said he would consider a short-term debt-limit hike, something Obama has said doesn’t solve the problem.  The GOP is desperate to slither away from even the vaguest responsibility for putting forth a sane budget.  They have decided to hand off their Constitutional responsibility to pass a budget onto Obama so they can then turn around and blame him for financial responsibility.

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They want him to cut things, not them.  They want him to reduce SS and Medicare, not them.  But this is illegal and they know it and it shows Cantor and his gang are unfit to be in Congress.  What is particularly irksome is how they bloviate endlessly about the Constitution.  Obviously, they have no desire to follow its rules.  Neither does the Democratic party which runs war after war illegally with no Congress declaration of war.

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The present example is, as all of them so far, a war against a Muslim leader who stupidly disarmed his nation based on American promises of protection.  Hillary, one of the world’s biggest war criminals, is meeting today in DC with the top Russian State Department equivalent making a deal so we can transport stuff through Russia to Afghanistan since we lost Pakistan, and to get Russia to back us in our demands that Gaddafi resign.  There is no connection between foreign policy and Congress except in one key, brutal area: AIPAC.

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AIPAC insures that Congress greenlights anything and everything the Knesset wants.  So it has become an echo chamber for Israel and this is costing us very, very dearly the most noxious way, in trillions of war cost dollars.

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Here is another news story about the present financial crash in DC which reveals the true plans of the GOP:  McConnell Warns of Risk to Party, and Country, of Default – NYTimes.com

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Recounting how the 1995 government shutdown helped President Bill Clinton win re-election the next year, Mr. McConnell said any impasse that hurt the nation’s credit and led to government checks being delayed could have the same result for President Obama.

 

 

“He will say Republicans are making the economy worse,” Mr. McConnell, who is recognized as one of his party’s top political strategists, said in an interview with the radio host Laura Ingraham.

 

 

“It is an argument that he could have a good chance of winning and all of the sudden we have co-ownership of the economy. That is a very bad position going into the election.”

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This is the end result of the Southern Strategy: to court racists, to move Federal dollars into the Deep South via military spending and to attack welfare queens in northern cities as the cause of financial problems.  Couple this with Wall Street in NYC wishing for tax cuts and free trade and we got this deal between the very rich and the very racist and voila: Republican victories especially if you stir in fears of gays kissing in public.

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This gang wants no ‘co-ownership of the economy’ because they are thieves, not responsible citizens.  The very rich who have gotten much richer by moving our industries to cheaper labor venues are not responsible citizens.  They are looters.  They know, if they paid tariffs on imports, they would have much smaller profits for themselves so they lie about this matter.  This is why no media, no politician is tying the trade deficit into the financial messes we are in.

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Americans are very anxious about the future and want a balanced budget but I see even in my small town, how deluded people are, wanting a huge military while paying virtually no war taxes, wanting to grow while not realizing how free trade has drained away our local businesses to the point, the town is on the verge of vanishing.  Indeed, my advice to my own town is to disband and cease being one so the county would have to take up our services.

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My town is mainly Republican and it is sad, watching them flounder as their own leaders drown them like kittens in a bucket of cold water!  They cannot figure out why their economic condition is getting worse and worse.  They want some sort of escape but due to deeper fears in the irrational part of the brain, they are more frightened of gays getting married and above all, are scared of Jesus who will come here and slay all of them if they allow gays to kiss in public.  Irrational fears are much harder to assuage than rational fears.

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The GOP is infested with ‘End of Times’ believers.  So is the Democratic party, in this case, the global warming people are running around, screaming about how we are all going to die and we need to tax CO2 production to save the planet.  So people who would lean towards the Democrats are scared off by this ‘using modern civilization’ tax.  A tax to be imposed on rich and poor but will mainly make the poor much, much poorer.

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If the Democrats were running on a platform of ‘A solar array on every roof’ just like the ‘chicken in every pot’ line of post-WWI America, there would be some sense of optimism and hope.  But running on an energy/production tax that falls on rich and poor alike (only, like rain, if the rich have umbrellas, they don’t get wet), this is very unpopular.  Couple this with the Democratic plan to legalize millions of illegal aliens and you get a very, very unhappy working class ‘whites’ who fear the Democrats enough to support the insane Republican plans.

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Both the DNC and RNC as well as our media play back memory stories all the time about the Bush/Clinton election 20 odd years ago, all of this commentary leaving out the last time we had an anti-free trade candidate, Ross Perot.  This man has been nearly totally wiped off the face of the earth since then.  He tried to start a rebel party like the Tea Party but it crashed and burned really fast.  The Tea Party had the exact same people during the first months, as Perot’s party only it was taken over, rather than destroyed, by the Republican machine.

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There is now no anti-free trade candidates even though Ross Perot’s famous quote, ‘Giant sucking sound of jobs going overseas’ still resounds, though never mentioned in the news, of course.  Meanwhile, all of this is causing our major foreign creditor/trade partner to issue warnings:  China Dagong Rating Agency Chairman: US Debt On Negative Watch 

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“The U.S. federal government’s debt repayment ability is falling,” Guan said.  ”Various factors affecting the repayment ability of the U.S. federal government are deteriorating continuously. If there isn’t any significant change in its debt repayment ability and willingness within the period of observation, Dagong will downgrade the U.S sovereign ratings,” the report said.  Moody’s said Wednesday it was placing its top Aaa rating on U.S. government debt on review for a potential downgrade.

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This is no idle threat.  Proof that being a creditor nation means controlling international finances, we see today that the Nomination of China’s Zhu as deputy chief has global significance and indeed, he is going into office there next week and the Chinese plan, since the 1980′s is to take over the IMF.  And there is a 100% chance of this happening.  The French still monopolize this position but the crashing EU finances means an end to this farce and Britain’s banking system is causing public unrest as it goes down the tubes.

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A day of irony ends with this news:  Celebrating 90th Anniversary of Founding of CPC.  Yes, the commies still run China.  China isn’t paradise, it isn’t perfect, it has many problems but one problem China does NOT have is, being run deep in the red in all ways like the US!  China isn’t collapsing like Japan!  China isn’t running massive trade and budget deficits like the US and Britain!  China isn’t a loose confederation of warring states like the EU.  China is a united country, even if some parts by force (EXACTLY like the US which fought internal bloody civil wars, too!) and China is led by people who want China to prosper, not go to hell in a hand basket just so a tiny elite can loot the place.

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This is a significant difference and it may take time for people to figure out that big nations with powerful leaders who look after the people and protect them and give them social services and enlarge their economies and keep the peace are preferred to places with anarchy, chaos, huge differences between the rich and poor and traitors who work for foreigners rather than the citizens.  Being a citizen is an important concept. Citizenship should be based on being born in a country, not being a member of this or that tribe or religious faith.  Citizenship means paying taxes and getting services and voting for people who represent the interests of the citizens, not some lobbyist who bribes the winners of elections.

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Fixing America means killing fund raising for office and restoring the fair media practice we had before Reagan killed it.  Now, the media can ignore anti-free trade candidates while the League of Women Voters no longer runs real debates for President but rather, this has been hijacked by billionaire media owners who have a servant ask the candidates leading questions so they can hide the true questions that should be asked.  The one major change since Ross Perot got to stand next to Bush and Clinton in those debates is the ability now to prevent any future Ross Perots from daring to stand up to the hand-picked candidates chosen by the Bilderbergers and our media owners.

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To the horror of our ruling parties, Ross Perot polled ahead of both Bush and Clinton six months before that election and he got over 17% of the vote, swinging the election to Clinton, a very significant showing for a newfangled, third party candidate.  He is still a billionaire and no longer talks about the giant sucking sound since he has decided he will get in the Billionaire Yacht built by god’s orders to replace Noah’s ark.  And then sail merrily away.

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Several years ago, he launched a website that talked only about government and social spending in the hopes of scaring everyone into cutting these vital services rather than tax billionaires like himself and so he launched 

Perot Charts

perotcharts.com/ - Cached

Thank you for your participation in this website. Because of reduced visits, we are discontinuing the website. We appreciate your interest. The Editors.

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HAHAHA.  How stupid is this?  He gave up after only one year of running this site because no one was interested.  If he had started an anti-free trade site with graphs and charts and commentary, he might have gotten some readers.  Instead, he was so interested, he gave up.  He is now passively going along with fellow plutocrats and will descend into the grave after not saving America and frankly, he doesn’t care anymore.  On the other hand, the Chinese rulers are very concerned about China and its strength and glory and will fight tenaciously to make China stronger and more powerful and this is the difference between China and the US that is most striking.

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