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:
ALFRED Graph – ALFRED – St. Louis Fed
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:
ALFRED Graph – ALFRED – St. Louis Fed
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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23 responses to “China Is Going To Stop Hoarding US Trade Dollars: US/Japan Aggression Irks China”
Thanks, Elaine, for alerting us about this inevitable development with China and the USA.
Well, it seems to me I better learn to play and sing that old Jazz standard, “Here’s that Rainy Day”– I fear it will be apropos for what’s coming down the pike soon.
Well, the rich certainly are singing “I Did it Mai Wei”…
The Blues is for the working and middle class….
Elaine, certainly you’ve heard by now about the US’s dismal placement in the latest international education rankings. I’m curious what your thoughts are about the public education system and why, for instance, there is such a large gap between the US and Canada, which should be culturally and socioeconomically very similar.
The radioactive contamination is all going in the sea – http://www.washingtonsblog.com/2013/12/theyre-going-dump-fukushima-radiation-ocean.html
I suspect you know nothing about the racial and social makeup of Canada and how it differs from that of the USA.
Ignorance is bliss; whether it is pisa based or not.
But I am willing to help you.
Canada’s largest not European minority is the Chinese at approx. 4.3%
followed by Native Canadian Indians at 4.0%.
Protected in the USA minorities amount to less than 3% of Canada’s pre-college population. So, it is not so surprising that Canada does a wee bit better than the USA. Nor is it at all surprising that Shanghai and Singapore and other mono-cultural, non diverse, highly civilized places score higher on tests on educatability.
“the US and Canada, which should be culturally and socioeconomically very similar”. Culturally maybe. Racially, as CK pointed out, not even close. It did make me laugh though.
“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.” And our two political parties ( and their media mouthpieces) have this stealth agreement to NEVER mention the insanity of “free trade”.
Ambrose Prichard provides this important information “Mr Callow (global strategist at Barclays) said Excess industrial plant in China is exporting deflation across the world” China’s fixed capital investment over the past year has been $4 trillion, compared with $3 trillion for the entire EU and $3 trillion for the US. This has grown eightfold in a decade. It is a vast new source of supply for a saturated global economy.
China itself is now in PPI deflation. Factory gate prices fell 1.5pc in October. This has the makings of an almighty profits squeeze since wages have risen 13.6pc over the same period. There is a school of thought that China’s investment glut will prove very hard to manage and this will trigger the next big round of angst in the world economy, but exactly when this will happen is anybody’s guess
Elaine, as long as your post has to deal with economic matters, please consider the following ideas.
The EU is in late stage, better said terminal stage socialism, which had been saved up until now from collapse by the ECB’s LTRO 1, and 2, and OMT. So far this month, that is the first week of December 2013, Brazil Financials, BRAF, are leading Brazil, EWZ, lower; and Westpac Banking, WBK, is leading Australia, EWA, lower; and Shinhan Financial, SHG, is leading South Korea, EWY, lower. European Financials, EUFN, are leading European Stocks, EZU, lower, with Italy, EWI, Spain, EWP, France, EWQ, and Ireland, EIRL, down strongly. The picture here is one of the World Financials, IXG, leading Nation Investment, EFA, and World Stocks, VT, lower, with a real investment deflationary black hole emerging in the Eurozone, if one believes bible prophecy of Revelation 13:1-4, to be true.
The trade lower in fiat wealth, that is World Stocks, VT, on December 2, 2013, coming on the rise of the Benchmark Interest Rate, ^TNX, to rise above 2.74%, at the debt deflationary hands of the bond vigilantes and competitive currency deflation hands of the currency traders, has pivoted the world out of liberalism and into authoritarianism.
Under liberalism one had economic life in the banker regime’s policies of investment choice and schemes of credit, which provided a moral hazard based life experience of prosperity. Dynamos such as corporatism, socialism, and globalism will be failing.
Now under authoritarianism, there is only a singular dynamo of regionalism, one has economic life in the beast’s regime’s policies of diktat of regional governance and schemes of totalitarian collectivism debt servitude establishing crushing austerity. Destiny is at work, fate cannot be altered; the new normal is a life experience of austerity.
There will be no opportunity for Austrian economics designed work rule reform, easier standards to fire people, fewer government workers, lower minimum wages, less regulation, and less taxation. Nope, no way, and never, as a whole new economic age and paradigm has commenced; it is called authoritarianism, and it is coming regionally, first in the EU, and it is coming to provide the experience of totalitarian collectivism, this being foretold in Revelation 13:1-4
I thought you might be interested in this article.
Interestingly they acknowledge that the Sun’s energy affects Earth’s convection and “space” weather but not the Earth’s weather.
Thanks for referring to this calamity as the “Great Depression”. Nobody else is as honest.
“if one believes bible prophecy”
I would say as much belief as any of the secular soothsayers – Nostradamus, Orwell, Huxley, Cayce, Celente….. I’m sure all those who wonder about the future, study social behaviorism and trends, the power of subconscious projections and how they influence the future are damn worried.
Personally, I subscribe to some of the most renowned prophets of our times, Alfred E. Newmen, who once said, “What me worry” or Bob Marley’s song, “Don’t worry be happy” which was inspired from a quote from the beloved Meher Baba, and of course, I also take great comfort in the words of Ram Dass, “Be here now”. I can only add my two cents with – “Be here now while preparing for the future”.
But, will China stop buying Yen ?
The elites refuse to learn. It is why I always describe them as the synergy derived when one combines supreme arrogance with total incompetence. Now let’s see.. you are the world’s biggest debtor nation IN HISTORY, so you try to provoke a war with you largest creditor? WTF?! And drag your biggest ally in the region along with you? Imho, no endgame scenario to this comes up desirable for the US. The only explanation I can come up with is that the elites want to thin the herd of peasants through war and be able to blame the devastated economy on the war. Also: China has shown absolutley NO reluctance to engage the US militarily. They did it in Korea in the 1950’s and they did it in Viet Nam. China certainly, imho, has no desire for military conflict, but China, imho, will not hesitate to confront the US if need be.
Apparently China has a draft for freshman college kids which contributes 6 million new recruits to the PLA every year, adding to the 2.3 million standing army. With the increasingly imbalanced number of adult single males over females and the nationalist indoctrination of a draft there is an adult population increasingly ripe for war.
The Diplomat, Nov 13, ’13
I agree with parts of all comments. I think what is missing is the concept of “nation state” or lack thereof. The US or Britain or any other nation state no longer exists in a “globalized world”. It ceased to exist 100 years ago when a private group of international bankers created the federal system and somehow got it institutionalized into the constitution of the United States. The Federal Reserve is an internationally owned and operated bank and functions and operates at the whims of its owners. The historical perspective in 1913 was that “colonialism” was at its end. The creation of the Federal Reserve System extended this colonialism to this date. You can never accuse these guys of not being smart;>)
The group that controls the US empire is the same group that controls the UK. The UK is now sucking up to China, that means the game is already over for the US, people just don’t know it yet.
You are correct, the Chinese are relentless history keeper and student. Every trick the “elites” is pulling now has been done over and over again in Chinese history by various ancient empires.
I don’t think the “elites” have a good idea on what kind of people they are really dealing with.
China is a hellhole….is that civilizations future? To fall into a hellhole.
No Luc, China is not a hellhole, unless you believe all the propaganda you read in the western media. China is moving forward, things are gradually improving there. However, in the several first world countries the situation is rapidly deteriorating.
Timmi….ou have a right to yr OP. having read a lot..including ‘China Wakes’,
that notes China has 100,000,000 missing [killed] women!
‘However, in the several first world countries the situation is rapidly deteriorating.’..yes, immigration is wrecking once White lands.
It seems that the confrontation in the Far East between the US and Japan against China has yet another player: Russia.
Apparently, sometime during the last week, two Russian Tu-95 Bear strategic bombers have flown just outside Japanese air space near Hokkaido and performed a * virtual * firing of a AS-12 Kegler anti-radar missile. The aircraft were clearly aiming towards a Japanese air defence radar station on the island, before they were intercepted by Japanese Air Self-Defence Force F-15J fighters. (Note that the AS-12 Kegler is similar to NATO’s AGM-45 Shrike anti-radar missile.)
Also, apparently, during the period between July and September, Japan’s ASDF has been on high alert in at least 105 instances, just to intercept Russian Tu-95 and Tu-142 aircraft testing its air defences. Since then, the number and the scope of the Russian Air Force missions is unknown to the public. However, it is rational to say the whole thing is escalating as the standoff turns to a conflict (see virtual dogfights between JASDF and Chinese fighters in the East China Sea ADIZ, 10 days ago).
With all this Russia delivers a message that it stands next to China, by puting pressure on Japan and threatening to open a second north/northeastern Pacific Front in the event of a conflict in the East China Sea and surrounding Japan. The pattern is similar to the standoff in Syria, with China backing Russia by sending a naval fleet and around 1000 Chinese Marines in the Eastern Mediterranean to prevent the US, France and Israel from intervening.
The question is: Are these the early stages of an ongoing undeclared WW3? Let’s just hope they are not.
Russia and Japan have HUGE air space disputes which, again, Japan and the US refuse to arbitrate via treaty or diplomacy. Today, South Korea was encouraged to expand its airspace control without any negotiations.
So ALL are doing this and this means WAR. It is fueled by the US which refuses to back down and is the driving force at work here.
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