PBOC Says No Longer in China’s Interest to Increase Reserves – Bloomberg: China now holds over $3.5 TRILLION US dollars. As well as $1.3 trillion in US government debt money. Money is simply pouring into China thanks to China’s very strong industrial base. Zhou Xiaochuan unlike his Japanese counterpart, has allowed the yuan to rise in value against the dollar while Japan has been permitted to do the opposite.
China plan to quit dollar infuriates US | EUTimes.net speculates that this is in retaliation for US/Japanese military aggression in China’s sphere of naval influence. At this exact same time, Japan preparing Y5.4 trillion economic stimulus package after deliberately weakening the yen so Japan can import more to the US while US trade negotiators make a feeble stab at begging the imperialist Japanese to please allow more US imports which is never going to happen. Now for some graphs:
This money printing business isn’t coming out of thin air, it really is connected to something very physical and extremely dangerous: world trade. The global free trade ideology of rich US speculators and bankers is based on the concept of them exploiting foreign labor to bring cheaper goods into the US and thus, kill the unions which was goal #1 since day one. And it worked like a charm. No more pesky unions, lots of wealth for the very rich, what is wrong with this formula?
The graph showing the money printing is due to foreign trade rivals holding US dollars so their currencies will be artificially weaker against the dollar. This money printing which was very bad before the bank collapse shot to the moon after the Great Depression (for US workers) set in ernest. All our corrupt politicians whine and moan about the financial losses and job losses of US workers but never, ever mention free trade as the cause. Instead, it is this mysterious thing that prevents US workers from getting pay raises or anything. Now for the flood of red ink due to our importation of most of our consumer goods:
The rate of importation has continues to rise. It is now nearly $3 trillion a year! This is amazing as well as totally insane. The brief fall in importations was due to the Great Depression cutting back on purchases but this lasted a mere 3 years. Here is China’s huge import data:
ALFRED Graph – ALFRED – St. Louis Fed: note the huge, gigantic see saw upward ratcheting: this is due to Xmas. The silly season is killing our economy. Far from being good, Xmas sales are very destructive for our trade situation. The trade with the US is $40 billion a year! Japan doesn’t have this see saw effect:
ALFRED Graph – ALFRED – St. Louis Fed: Japan’s trade’s see saw is caused by recessions. Its trade is basically stagnant but at a level beneficial to Japan compared to our trade the other direction. It is only $12 billion, barely more than a quarter of the imports from China. Even as Japan weakens the yen frantically, the exports don’t increase so far.
This is all background for Japan’s imperialist aggression meanwhile, desperate to revive a dying economic system, Japan preparing Y5.4 trillion economic stimulus package. Abe and his gang told the long suffering Japanese public that they need to pay much higher regressive sales taxes to save Japan from bankruptcy. So the people sighed and did this only to see Abe announce government spending will surge greatly to ‘stimulate’ the economy. That is, the rich contractors who back him will, like the ones in the US, feed off of the workers like vampires, tax them all heavily and with no remorse while getting big, fat government contracts via personal connections.
Here is a comment by one of the Japan Today’s readers that covers this pretty good:
sangetsu03DEC. 04, 2013 – 09:12PM JST
Unless Consumption tax goes up they won’t even be able to start paying the debt off.
The consumption tax was expected to raise 5 trillion yen in the short term, subtract the 5.4 trillion “stimulus” package, the effect is a net loss of 400 billion yen. But then this has been the routine for the last several decades, raise taxes a little, raise spending a lot, and continue to recklessly accumulate debt.
In the long term, the increase in the consumption tax will at best be revenue-neutral, and at worse, actually decrease revenue by reducing economic activity.
The most obvious solution, reducing government spending, is still not even being considered.
Japan’s Nuclear Refugees, Still Stuck in Limbo, nyt, 10/1/2013 …were supposed to get funds from a tax hike due to the tsunami and Fukushima but this paid only for parking them in flimsy, poor little shacks where they are now stuck forever because the government wants to spend money elsewhere. Perhaps this latest debt surge might see these poor victims getting properly housed by I doubt it. Anyone watching anime can’t help but notice that all scenes taking place near streams or rivers are on the banks of cement embankments as the powerful building consortiums that own Japan’s government were paid to pave everything.
This has nearly totally destroyed the beauty of many parts of Japan plus it is an ecological disaster, destroying the riverbanks is very bad for the ecosystem. Fukushima pollution has destroyed the ecosystem, too. The dearth of wildlife is very obvious especially the absence of birds.
Both Japan and the US has tremendous fraud and this has grossly weakened the economic base of both countries. Here is today’s example in the US: Navy fraud case prosecutors: Contractor got more work despite poor performance – The Washington Post. This one contractor is using Singapore as his home base just like so many other US military procurement operations which relocated overseas to avoid paying any taxes at all while sucking at the public teat. The generals in the Pentagon are very corrupt at this point and move between government jobs and working for these many leeches.
Senior officer, NCIS agent are among those arrested in Navy bribery scandal and there are many scandals out there. Even as the US parades its huge, very expensive navy all over Asia snarling at China, the holes below the waterline due to fraud, corruption and free trade are shipping on water and our navy is sinking, not sailing. Bribes and kickbacks are common as everyone views our navy as a looting expedition for themselves.
Then there is this news: New Russian Submarines Are So Silent That The U.S. Navy Calls Them “Black Holes” | Pakalert Press. If this is true, we are sunk. The Chinese and Russians are hard at work upgrading their own systems and the Cold War years tell us, they will succeed. They aren’t stupid. If we insist on running a totally corrupt system that destroys our own home base while looting our own Treasury, we will see everything we do turn to dust and ashes.
Tech entrepreneur’s renovation of Hickory Hill signals new business guard remaking D.C. – The Washington Post: this story is about all the millionaires the NSA is creating. They, too, are on a looting expedition. So today’s news that these clowns, at great expense to us all, are also spying on everyone’s cell phone calls! They justify this by saying it will protect us but it is merely a front for making money for themselves. They spend a lot of effort dreaming up more and more expensive ways of spying on everyone all the time plus they get the data, too and can exploit this for political or financial profit. They are building huge mansions as they suck the life out of our nation driving our debt higher and higher while destroying our civil rights and freedoms.
As I keep pointing out, one has to keep a hard eye on trade stats to understand what is going on. The US and Japan have basically declared war on China. China is being forced to respond. China originally thought they would be the world’s #1 economy by 2025. Now, it is in two years. The US and Japan figure now is the time to confront China because the destruction of both nation’s economic and government systems is still masked by the flood of money printing being done by the Bank of Japan and Federal Reserve. This is at intolerable levels so both have united in provoking a war which will be an excuse to destroy China’s infrastructure via bombing or interfering with shipping, etc.
Only China and Russia can and will strike back! And this is why starting WWIII is very stupid and will fix nothing unless Fukushima is the model for tomorrow’s world.
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