ΩΩThe US finally decided to start a one-sided trade war with only one country: China. This, on top of a raging war in Afghanistan and huge budget deficits. China will retaliate and hit us very hard where it hurts: we want a weak currency, we shall get our wish in spades. And trust me, it will hurt, big time.
.
ΩΩWorld gripped by ‘international currency war’ guardian.co.uk: First came this warning from the Bank of China’s roster of leadership, aka, our bankers who hold a huge amount of US dollars in their FOREX stash as well as tons of US debt: U.S. Dollar Is ‘One Step Nearer’ to Crisis, Yu Says (Update1) – Bloomberg.com. The Democrats are terrified of the voters and figure this is time to go save our lost industrial base which moved not only to China but to Japan, Germany, Canada, Mexico, Brazil and a host of other nations. For the longest time, I have advocated simple tariffs and barriers to prevent loss of US industrial jobs. So here it is: House Votes for Greater Tariff Powers – NYTimes.com
.
ΩΩThis is aimed ONLY at China. Thus, it is totally and utterly ‘illegal’ as so far as our ‘free trade’ treaties and deals. Worse, it fixes absolutely nothing at all. It is definitely a bandaid over a gaping wound pulsing huge amounts of blood but we amputated our entire auto industry rather a while ago and handed most of our domestic auto markets to the Japanese, not the Chinese.
.
ΩΩJust as playing stupid currency games in the FX markets did absolutely nothing to protect our industries and save our jobs, selective tariffs on only one trade partner while letting all the rest run riot is futile and worse, leads to war since it is economic warfare, not a set policy which is designed to operate against all trade that is ‘unbalanced’.
.
ΩΩTwo days ago, Goldman Sachs suddenly announced they are running away from Chinese banks: ICBC Shares Fall After Goldman Sells $2.25 Billion Holding – Bloomberg.com. It is painfully obvious that all the employees in the Senate and the House who work for Goldman Sachs (that is, our ‘representatives) let their bosses know what was afoot. Obama’s party is on the ropes and is now willing to launch full frontal attacks on the Chinese in order to gain some foothold even though most of our office jobs being exported are going to…India! Not China.
.
ΩΩDuring the last summer Olympics, the US and EU media went entirely hysterical about how they were certain the Chinese would fail to pull off a great Olympics. China proved them wrong on nearly every count. It was an amazing production. Now, India is hosting the Common Wealth games and they are still very much a third world country in many ways: India hires monkeys to guard Games venues — msnbc.com.
.
ΩΩYes, they have monkeys on patrol. On leashes. All sorts of starving animals like sacred cows wander all over the games sites and even into the housing. Ceiling falls: More chaos dogs India’s Games -msnbc.com. Of course, India is chock full of insanely cheap labor and the plan is to move all our production now in China to…India. It will NOT come anywhere near the US. The Democrats hope to fool voters into thinking, stopping China will magically bring our businesses home again. It most certainly will not.
.
ΩΩJust the other day, I got a survey call on my cell phone. I was rather irritated to hear the voice on the phone because she was very obviously calling from India so I refused the call. Once upon a time, many thousands and thousands of US workers did these jobs. Now, it is approaching zero. There are many, many such jobs which are being exported and this is rising, not falling. Instead of taxing US corporations which send jobs overseas, we are putting tariffs on only one facet of this job loss system.
.
ΩΩIceland is still raging mad at the bankers who left the citizens holding a stinking bag of garbage. Geir Haarde, Iceland Ex-PM, Indicted For Role In Financial Crisis is most interesting news since we should be doing this, too. Arrest the entire Bush administration! Arrest Greenspan! Someone has to pay the price for leading us off a cliff! Instead, half of the nation suffers from attention deficit disorder along with our media and thus, cannot even recall what happened, when. So it is a total mystery as to how we got into this floating fiat currency/free trade/war deficit spending mania. Childishly, most of the chatter is about cutting taxes.
.
ΩΩWell, I have news for everyone: taxes are the least of our problems! If China reacts nasty to our selective trade barriers, we could end up paying $20 a gallon for gas. Hyperinflation has been greedily staring at us like a cat watching a mouse hole. This creature knows that if we irritate the Chinese, they might unleash $2 trillion US dollars into world currency markets. And yes, the yuan will rise mightily against the dollar but the price of oil will do the same.
.
ΩΩIf the yuan is four times more valuable than the dollar, we shall see all the oil flow to China since they can outbid us in world markets and they will do this. Already, they outbid us in most markets. Japan is more like the US in that the ruling elites there view the people as excess population to be thrown out with the trash. Due to voter irritation, the new government decided to crack down on the lenders who get ZIRP funds from the central bank and then practice usury on the workers. Takefuji Goes Bankrupt After Consumer-Loan Crackdown… Bloomberg.com. This is the biggest lender to the poor saps who struggle to keep a roof over their heads.
.
ΩΩRiots and strikes are paralyzing large hunks of Europe. Here is one funny story from Ireland: ‘Toxic Bank’ Truck Blocks Irish Parliament – NYTimes.com. Direct action is what governments understand best. The US is very diffuse so we don’t have national general strikes. But we may see some serious disorders if the working poor are left with no oil. Japan calls on China to make more efforts to ease tensions › Japan Today: Japan is very nervous since China squeezed them in rare metals markets. The US open declaration of currency/trade wars with Japan’s biggest trade partner isn’t going to fly well in Tokyo.
.
ΩΩNow, the story about Hitler and his stupid tactic of attacking Russia while attacking the US shows us that this is stupid. The US is fighting a futile war right on China’s western border. Obama Argues for Continuation of Afghan War — News from Antiwar.com. We just expanded it even more into a despairing population in flooded Pakistan: Here is Obama’s latest peace prize pronouncement: We need to make clear … the cancer is in Pakistan’.
.
ΩΩSo, the fix for the US is to launch both trade as well as assassination wars on several fronts. We are definitely losing the War on Drugs as well as the business about illegal aliens: Gustavo Sanchez, Mexican Mayor, Stoned To Death. Every day, the drug cartels hammer the government in Mexico. We have a trade deficit with Mexico, by the way. And we spend lots of money trying to stop drug imports.
.
ΩΩAnd remember Haiti? Oh, how everyone cried for the poor people there in this excellent third world hell hole: Haiti Still Waiting For Pledged U.S. Aid. 90% of world pledges to fix Haiti are forgotten. And this is the fate of any ‘cap and trade’ derivatives system set up by governments: it will fix nothing. The hard work of redesigning our culture so we don’t suck up gallons of oil every hour must start now but we can’t do it when we are spending our precious funds on fighting the Taliban right on the border of China and are fighting China while not using tariffs wisely.
.
ΩΩNamely, tariffs should pay for our government! They should be on all things, not select things. And these things must be priced so they can’t undercut our own prices for domestic production! How simple is this????
Culture of Life News 
Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall.
All the king’s horses and all the king’s men
Couldn’t put Humpty together again.
THE CHINESE CONNECTION
by Byron Dale
“Many times, when explaining to people across America why we must convert our money system back to a debt-free representation of wealth, I hear the comment, “You may be right. But there is nothing we can do. It must collapse first”. When I ask when they think the collapse will happen no one seems to have an answer and no one can tell me how a collapse would solve the problem. I’m not convinced there will be a collapse.”
“The ‘collapse’ theory is based in the concept that there must be a day of reckoning for the constantly growing debt. Yes, banks will experience increasing difficulty finding people with the ability to borrow. More and more people will not have enough the cash flow to make loan payments. Their debt load will be too great.”
“Few consider that America is not the whole world! The last big crash in 1929 brought about a change in our monetary system that was not for the better. There is no law of nature that guarantees America must be or will always be the greatest nation in the world. Like nations of the past, America could simply deteriorate into just another third rate nation. Another nation could become the greatest! Those in total control of the world’s money system and therefore the world behave like parasites, living off the host until the host is too weak to feed them. Then, they look for a new host. I see these parasites moving to make China the next great nation and their next great host!”
“History shows that nations with the greatest money supply have the greatest growth. A nation can grow just as fast on debt money as it can on wealth money—at least for a long time.”
“The Chinese people have little personal debt. They’ve been tightly controlled and held down economically by government action. That’s slowly beginning to change. Many large U.S. Corporations and others which have allegiances to nothing but money have moved there factories to China to take advantage of cheap, under-paid labor.”
“The controllers of world debt-money are preparing to open the floodgates of unlimited debt-money upon the Chinese people. There has been very little lending by banks (creation of debt) in the form of personal loans to finance cars, houses and other durable goods. But, change is coming to China. Banks are starting to extend personal loans to the Chinese people.”
“While the maturing debt-money system slowly drags America down, China’s the newly born debt-money system will spur growth there.”
“This scenario does not have to happen. We don’t have to sit back and let the money lords destroy America and steal our life potential. We don’t have to make the mistake our great grandparents, grandparents and parents made because they did not understand or care about how the money system works.”
“We are engaged in an economic war, a war for Liberty and Justice for All. We must either fight and gain economic freedom or remain passive economic slaves in debt servitude to the money masters.”
“…When all money is created as loan principal and uncreated when the principal is repaid, there is no way to create the interest which must also be paid – it is a ponzi scheme plain and simple
http://www.wealthmoney.org/articles/Chinese-Connection.html
Oh gosh, I think America is going to see a lot of chaos between now and Dec 31st.
well, how about this….disgusting…
http://www.zerohedge.com/article/here-how-worlds-biggest-bond-funds-and-others-just-not-you-get-advance-notice-what-fed-about
Elaine,
did you see this one?
http://news.xinhuanet.com/english2010/china/2010-09/30/c_13537203.htm
“China welcomes WTO ruling on US ban on Chinese poultry imports”
the whole monetary system is beyond adequate or honest, it is vengeful… and until debt is negotiable money itself will becoming increasingly crude and worthless as a tool for true wealth…
.
.
abandon hope
I can’t help but note here that in a number of countries, exporting jobs out of the country is a crime. In South Korea, the penalty for exporting jobs is up to and including the death penalty. Here in the US, we subsidize multinational corps. for off-shoring as many jobs as possible. It should be self evident that exporting jobs destroys an economy. What’s confounding to me is WHEN will the American people take to the streets and DEMAND some worker protections? I recall that in France a 3M executive was taken hostage by his employees because of the American style work rules he wanted to impose. I guess too many Americans have had their brains turned to mush from all the junk food and junk TV they watch.
http://globaleconomicanalysis.blogspot.com/2010/09/defending-chinas-trade-policies-what-if.html
lets fight these lossy liyers
we do nut need them.