China Rescues Europe But Demands Respect Or Else

The US public and the multibillionaires who run our country all refuse to acknowledge the role trade plays in making countries either richer or poorer.  Habituated to continuous trade deficits paid for via money printing, the arrogance of the US is huge.  We use our trade deficit as leverage for things we want done in international affairs.  Alas, this is misused nearly entirely on behalf of expanding many wars, mostly against Muslims, and protecting Zionists.  So the US loses power, prestige and economic vitality whereas China does the opposite and grows ever stronger.

 

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The US printed over two trillion dollars in the last three years in order to fund world free trade and continue massive deficits while lending another six trillion dollars to international bankers who created this whole mess in the first place, bailing all of them out when they all faced bankruptcy when the Derivatives Beast turned on them and tried to eat them all.

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This very expensive rescue operation has allowed the international bankers of the West to continue their merry ways.  This, in turn, caused a huge commodity spike as they all played the world commodity markets to make up for real estate and business lending losses.  This, in turn, then caused global economic collapse for many people who can’t afford massive energy and food inflation.  This, in turn, is fueling many revolts, revolutions and mass demonstrations as well as crimes in many countries the US once thought were well secured.

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The US can still lend to foreign powers at ZIRP rates just like Japan has done for many years but this is increasingly difficult since this reduces the value of the US trade dollars which then makes it harder to make a profit on trade with the US.  This contradiction in matters is typical of all real-world systems: you can’t escape reality forever.  The longer you try this and succeed, the harder reality slaps back when it finally get reset.

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Once upon a time, China was the world’s biggest economic entity and had an amazing production system run from a central government.  For several thousand years, China was one of the most civilized places on earth with many technological breakthroughs from domestication of animals and plants to gun powder.

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For a brief while, Europe surged ahead of China and then invaded, using Chinese-invented gun powder, and looted the place.  The Chinese culture collapsed and when Mao took over, he finished it off and left a total wreck behind except for one thing: universal schooling based on the German Bismark system was finally launched there and this is the seed bed where the present Chinese giant arose.

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One other thing that is very funny is, Chinese students had to learn about Karl Marx and read about capital and labor and what these really are.  Coupling this lesson with lessons from history (I had no minor hand in this matter) the Chinese figured out how a thriving industrial base coupled with a strong government leads to international power.  Sovereign wealth is power but only if a state is strong and can defend itself.

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Libya had a lot of sovereign wealth but no political or military power when set against NATO.  So, when Libya’s dictator had a slight domestic disadvantage, NATO leaped in and destroyed the country.  But NATO cannot destroy China.  The last attempt at this was to back Tibetan and other rebels and then condemn China for stopping insurrections.  Now, the shoe is on the other foot as Europe begins to have insurrections which they must suppress.  So, the turn to China to save them from their own follies.  And so China states its diplomatic price for Italian rescue

 

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Mr Wen said he had spoken to José Manuel Barroso, the president of the European Commission, laying the conditions for Chinese intervention.
“I made clear to him that we are confident Europe will overcome its difficulties and make a full recovery. We have on many occasions expressed our readiness to extend a helping hand, and that we are willing to invest more in European countries.”

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“At the same time, we need bold steps to give redirection to China’s strategic objective. We believe they should recognise China’s full market economy status,” he said, referring to World Trade Organisation rules.

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“To show one’s sincerity on this issue … is the way a friend treats another friend,” he said.

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When Wen speaks, he chooses his words with great deliberation.  He is the right hand of Hu and both have funded and built up a massive diplomatic corps which crafts diplomatic responses to events.  The US has one, too, but alas, it is entirely a Zionist operation so all it does is figure out how to make Israel, not the US, stronger and stronger and all it has done is isolate the US and Israel from nearly everyone.  The only reason we have any allies at all is due to our trade deficit, not our power.

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This key element in what is wrong with our entire diplomatic corps is never examined by the media because that is nearly 100% Zionist and therefore, sees no dangers in this cock-eyed system.  But China’s diplomatic corps does have a united purpose and that is to make China richer and stronger and all initiatives must tie into this or heads will (literally) roll.

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China has accumulated roughly 800bn euros of eurozone bonds over the last decade, mostly from the AAA core such as Germany, France, and the Netherlands. This has been a crucial factor explaining the strength of the euro.

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It has intervened a number of times in peripheral markets since the crisis began, allegedly accumulating €50bn (£43.48bn)of Spanish debt.

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Wow!   Talk about ‘I be bank!’  When Sheng boasted to me, back i n 1987, right on the heels of the diplomatic group in my home finally figuring out how banking works with industry, I was amused until he later told me about the 50 Year Plan.  That made my hair stand on end and I warned the State Department about this and they thought I was both stupid and crazy.

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To this day, the State Department still holds this view and my warning fall on deaf ears.  I want a functional State Department that protects American interests because I am an American.  Recently, Justin Raimondo who runs Antiwar.com was whining about how evil the US is and said he was thinking of leaving.  Like many people who struggle with the state to wrest it away from irresponsible hands, he gives up much too easily and underestimates how difficult it is to flee a total imperial wreck.

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I happen to like my citizenship and it was dearly bought by my ancestors who came here several hundred years ago.  I won’t toss it into the trashcan just because some Zionists have seized power and are steering our ship onto the rocks.  Europe will eventually bow to China and as the US loses more and more economic power, China will be the main capitalizer of all business on earth and will cease buying sovereign debts and begin buying up all our economic systems from stocks to factories.

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Already, the Chinese have both Europe and the US by the short hairs, holding a total of $2 trillion in sovereign debt.  This is no insignificant sum.  It is massive and unheard of.  In the past, nations used to be very leery of selling their government debt to anyone, not even their own citizens except in time of wars, for example.

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The US is at war with Islam.  These wars are extremely expensive.  To fund these wars, the US didn’t sell war bonds to the US citizens but rather, went slinking off and sold it all to China.  The interest rates on these war bonds were set at a low rate which was OK with China since the Chinese understand, selling war bonds to a country which is viewed as a future enemy is insane.  The US thinks it can continue military build-ups in Asia while selling war bonds to the Chinese.

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This is so insane, I can’t believe it is happening since never, ever, in history, has a nation done something this dumb.  The US is demanding China not build a navy while begging China to buy our war bonds so we can continue fighting many wars in Muslim countries!  This sad state of affairs comes right out of the Zionist war machine that ignores everything while focused on stealing olive groves and hovels from the poor Palestinians.

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In the past, Europe and America sold all this massive debt to Japan which was once a sovereign economic power. But this is dead, totally dead.  And here is more proof that the Japanese system is in full collapse after decades of ZIRP financing:  Japan shut out of Forbes list of Asia’s top 50 firms – The Mainichi Daily News

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This year’s “Fab 50” list is topped by China with 23 companies, up from 16 last year, followed by South Korea with eight companies and India with seven.

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“The trend of Chinese corporate dominance underscores the view that the story of Asia is increasingly the story of China,” Forbes said. “No country has ever boasted close to that number, including China” since the list was launched in 2005…The companies were picked from among more than 1,000 companies in the Asia-Pacific region with at least $3 billion in revenue or market capital and judged on their financial performance over the last five years, excluding those with too much debt or where the government owns at least half the shares.

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Wow.  China certainly has surged ahead.  With 23 companies in the top 50, this is nearly 50%!  Everyone who, in the past, chided me for focusing on China so much, often brought up India as a counter example.  But India has only 7 corporations on this list.  The fact that Japan now has 0 corporations on this list is a huge warning to not only Japan but the US.

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The US is expecting Japan to run Asia for us.  We are handing over our entire nuclear arsenal to the Japanese diplomats who then set off on a scheme to conquer various islands contested by the Chinese and Russians.  This insane push for WWIII was nipped at the bud by the earthquake/tsunami/Fukushima nuclear meltdown.  Now, Japan is definitely on the ropes, economically and militarily.

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A nation as deep in debt as Japan cannot fund WWIII.  End of story.  Nor can it win due to its small size compared to China.  It has few youth able to die in war, it has too few youth to run a war industry at home.  There is no way Japan can compete with China on the world stage and increasingly, neither can the US.  We threw away most of our industrial base and thus, can’t turn civilian industries into war industries for all we have left these days is war industries.

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The Chinese are demanding banking reforms in Europe but Europe is shy about this since reforms means slaying the Derivatives Beast and this creature is the thing making the very rich bankers very much richer.  They love the Derivatives Beast and cling to it desperately.  The governments, fearful of China, are trying to somehow separate the market gnomes from the savings gnomes.  But this is nearly impossible.   Vickers report: banks get until 2019 to ringfence high street operations

 

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The ICB conceded that its reforms were “deliberately composed of moderate elements” but insisted “the reform package is far-reaching”.

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It said: “Together with other reforms in train, it would put the UK banking system of 2019 on an altogether different basis from that of 2007. In many respects, however, it would be restorative of what went before in the recent past – better-capitalised, less leveraged banking more focused on the needs of savers and borrowers in the domestic economy. Banks are at the heart of the financial system and hence of the market economy. The opportunity must be seized to establish a much more secure foundation for the UK banking system of the future”…

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…Up to £2tn of assets could end up inside the ‘firewall’ – including all domestic high street banking services – as the ICB said that the aggregate balance sheets of the UK’s banks was over £6tn and that between one sixth and one third of these should be protected from investment banking operations.

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As attempts at reforms fade, the goal of reforms are moved into the far future while the repairs are minimized.  So, two trillion pounds will be put in a safe zone while the majority of the loot will be still used for wild speculation and playing derivative games.  Yup, that will fix things.

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Of course, by moving even these feeble reforms into the far future, this simply gives warning to the rich to increase their government handouts to politicians to undo even the smallest of reforms.  Now that they are all recapitalized by hijacking all the collective wealth of Britain, these banks can resume their offshore/tax evading operations.  2019 deadline will never happen.

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In the US, the GOP has gone on the warpath and is pushing us all off a cliff hoping people will vote for their scheme of no government, but total police state rules (as anyone who offers abortion services to women about this!).  Rhetorical attacks on FEMA funding has turned into outright attempts at preventing FEMA funding as Reid wants FEMA bill in fast lane; Cantor denies aid is ‘hostage’.

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More than half of the Senate voted for these FEMA funds but not 60 Senators so the GOP unanimously voted to filibuster the bill so there is no money to build bridges in Vermont or help victims of tornadoes in the south.  And no money for Texan fires, either.  The GOP wishes to create hell on earth here and then blame someone else.

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Here is another example of filibustering to stop aid from going to American citizens:  Another Jobs Bill Killed – Blog – OpenCongress

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On June 6th, the Senate opened debate on the Economic Development Revitalization Act of 2011, a bill to reauthorize and expand a long-running and consistently successful job-creation agency, the Economic Development Administration. The EDA has traditionally enjoyed bipartisan support, and this reauthorization bill was introduced with bipartisan co-sponsorship and passed out of committee without any dissent from Republicans. But after two weeks of debate, the bill was unanimously filibustered by Republicans and has now been pulled from the floor.

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This is yet another example of the GOP uniting to stop a bill many of them originally supported.  This cynical move is in stark contrast with Netanyahu’s visit to Congress where they cheered him nonstop.  Anything he wants, he gets, from both parties.  And no questions about funding these things, either.

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The rich are protected by both parties, too:  Capital gains tax rates benefiting wealthy are protected by both parties – The Washington Post.  Duh.  AIPAC and the rich own Congress.  The rest of us are immaterial.  So what, if we die?  They don’t care.  Santorum: ‘People are living too long’ is a typical example.  He wants us to work until we are 79 years old.  Wow.

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Then there is Texas, one of the most hypocritical states in America.  Boastful and cruel.  Texas healthcare system withering under Gov. Rick Perry  which is no surprise.  The GOP howls about ‘death panels’ yet wants to work us to death.  Maybe this is due to  Watching SpongeBob  Which Can Lead To Learning Problems.

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Meanwhile, our wars against Muslims continues to collapse into a bloody mess.  Zionists are twisting every arm on earth and making very bad business deals in the process in order to make US Moves to Avert Showdown Over Palestinian Statehood.  Instead of focusing on fixing our own economic base, this is the #1 issue in DC.  Oh my, if the Palestinians get sovereignty from the UN, this means they can sue for redress in court!  According to the NYT, this is a complete disaster.  How dare they use the law for themselves!

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Already, the Zionist/US position against the Palestinians is deteriorating.  Right after the US pushed to have the Zionist blockade declared legal, another UN branch cried foul:  UN: Gaza Blockade Violates International Law.  And the most Nazi of the Zionists in Israel openly talks about arming terrorists:   Avigdor Lieberman is planning to arm the Kurdistan Workers Party (PKK) terrorist organization to “punish” Turkey .  Hello, isn’t that illegal?  Shouldn’t the US slam Israel for this?  HAHAHA.  As if we don’t do this ALL THE TIME.

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So, the Turkish FM Slams Israeli Counterpart Over Calls to Back Terror  and says it now has the right to invade Iraq to put down the Kurds.  And in Afghanistan, we are on the ropes, as usual.  The delusions of winning there are fading, fast but not fast enough:  Five Killed, 108 Wounded in Attack on US Base in Afghanistan  the other day while today, 12 Dead in Taliban Attacks Across Kabul.  China wins diplomatic and economic wars while we struggle to kill Muslims all over the place and then express dismay that there are more and more who are fighting each other and us.  As this chaos spreads, our condition at home deteriorates.  Someday, someone might figure this out.  The Chinese hope we don’t.

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11 Comments

Filed under .diplomacy, .money matters, Free Trade, Politics

11 responses to “China Rescues Europe But Demands Respect Or Else

  1. Melponeme_k

    I suppose nothing ever changes because no one ever has real conversations about money and capital. Marx wrote a big book about it and it has been practically banished from schools. During my school years, History classes were completely devoid of the motivating factor, the main subject, that drives history…money. Who controls it and who has capital. It was only touched upon rarely and at that topically.

    I’m reading a book on the Medici family now. And my god, the subject of money/capital is barely mentioned. But we get loads of stories on how they spent their money (high art, music, houses etc). There are still records in existence of their accounting books but those have been ignored. So the history of this family is lopsided and it can only be deliberate. The only capital allowed to be mentioned were alum mines. There had to be more than that. Plus we never get the story on how the hoarding of wealth among the Medici affected the middle/lower classes in Florence.

    Because we never get the full story and never demand the full story allows the elites to continually play the same games over and over again.

  2. Any talk of wealth distribution is inherently socialist, a big nono. Like any criticism of Israel is fingerpointing at the Jews (anti-semitism).

  3. Joseppi

    Every economic indicator – from high unemployment, rising poverty, concentration of wealth, budget deficits and the list goes on……And yet, through the persuasive power to manipulate perceptions through the media, and with a collusion of the FED and the major stock market players to artificially inflate the stock market indexes to a US audience eager to believe that a rabbit breeding prosperity can magically be pulled out of a recession mangled fedora – Today we see the stock market rise because of the impression promulgated by the media that China will buy Euro bonds to prop up Euroland, even though China said that first the Europeans have to put their house back in order combined with a little respect.

    The harshness of reality is postponed just a while longer. China benefits from the misconception by giving it more time to build up it’s capital producing infrastructure, but at the same time it doesn’t want to be holding fiat certificates of debt that some day could be reduced in devaluation to pennies.

    I do believe that the western power elites also recognize that if the trend continues that they will shortly lose their power to China. Could their strategy (gamble) be to bring about a serious depression with the fog of war hanging in the international atmosphere, because they believe China would not be able to withstand the social instability?

  4. larry, dfh

    The Chinese don’t need a conventional navy to deal with the West. They have 200mph torpedoes, surface hugging supersonic missiles, and can disable any satellite they want.
    The manufacturing skills built up over the last 2 centuries have been lost; they will not return easily. Even if some financier wanted to start a manufacturing business, they wouldn’t know how, they’ve been playing Ponzi games for so long.

  5. Dr. Detroit

    1. BOTH parties (although slightly more Repubs) knowingly, willingly, and voluntarily allowed China to strip mine our economy (despite decades of anti-communist rhetoric) and develop MASSIVE currency reserves.

    2. BOTH parties have had Treasury secretaries certify that China is NOT a “currency manipulator”. Even the Casey Anthony jury would find them “guilty” for that.

    3. BOTH parties decline to even mention “fair trade” instead of “free trade”.

    4. Which begs the question: “Why??”

    Is it as simple as unrestrained greed? I am reminded: “The love of money is the root of all evil”—–God.

    As unbelievable as it appears to be, Obama will win against the current field of Repubs despite violating (supposed) principles, a horrible economy, and even worse outlook. He is a “Black Bush”. Wars, pushing free trade agreements, cutting social security, not prosecuting fraud on Wall Street, etc. The Repubs should be able to put up their elephant mascot and be able to win in a landslide. But because they continue the same old crap, they will just continue to embarrass themselves. And they know it. Which again begs the question: “Why?”

    Maybe since Obama is doing all the heavy lifting for the Repubs as it is, why take the heat when they can let the Dems (and their foolish and naive supporters) have it. This just goes to show that elections are on par with American Idol, football games and the WWF. There is NO difference between these two criminal syndicates.

  6. Neib

    This is an example of how China is going mainstream in the U.S. http://www.youtube.com/watch?v=buSv1jjAels

  7. More Indians in USA…some getting in illegally.
    If you havent read ‘THE SNAKEHEAD’ maybe give it a read.

    China is finished [I think]..What it can do is buy land in better places and dump its people on us [yikes].

  8. ‘ For several thousand years, China was one of the most civilized places on earth with many technological breakthroughs from domestication of animals and plants to gun powder.’
    Now China is Hell!!! FREE TIBET!!!!!!!!!!!!!!!!!!!!!!!!

  9. RobG

    Zero hedge article:“A Declassified Jon Huntsman On China’s Terror Of A Gold-Pegged Dollar”

    Wikileaks has uncovered a declassified cable from John Huntsman indicating China’s clear understanding of the growing tension and comprehension of the ability of the US to entirely destroy it economically with one swipe of the Presidential pen via a massive devaluation of the USD or repegging to gold.

    No way there will be a repegging to gold. But ‘one swipe of the pen’, absolutely. I agree with this next quote:

    A crucial move for the U.S. is to shift its crisis to other countries – by coercing China to buy U.S. treasury bonds with foreign exchange reserves and doing everything possible to prevent China’s foreign reserve from buying gold.

  10. That last trick is old hat and China want fall for it, even if the US is doing it’s best to destibilize Chinese internal markets.

    The US is no longer in a position where it can devalue the USD and hope to continue as a superpower. All nations are extremly tired of being f*cked over by the US exporting it’s depressions and the world would simply rally around options to the USD. In other words, they would run to the Chinese and Russians and the ‘basket’ option they are working on, and the USD would be finished as the leading reserve currency.

    Remove the world currency leg from out under the USD overnight and the US’ already rickety finances will implode fatally.

  11. emsnews

    And see what happened today? Far from being tired of US dollars, they are addicted to it and hope to squirrel away yet another few TRILLION US dollars borrowed to keep the EU afloat at our expense!

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