China Rises Past US Due To Trade Surplus/Growth: English Queen Goes Broke, Dying Empire In Debt

Once upon a time, the German House of Hanover ruled the Seven Seas via ownership of the British Isles.  The British had the biggest navy and the greatest manufacturing base.  By WWI, Britain was dethroned and Germany was destroyed so the US took up the mantle of World Shipping/Manufacturing Power.  WWII made the US even stronger.  We built ships and made goods at a mad rate.  Since then, it is been all downhill for the US with the Cold War leading the desperate US powers struggling to stay #1 via reviving Germany and Japan both of which became top world manufacturing and trade powers.

All that is now faltering because both Germany and Japan depended on having one way trade with the US thus bolstering their power via running trade surpluses.  Since the Vietnam war, the US has run worse and worse trade deficits with its allies and to fix this, after the fall of Madame Mao, the US sought to strengthen China via trade so China would menace Russia which was still ‘communist’.


This worked perfectly except for one terrible thing: China expected and got the same carte blanch to have mainly one way trade that Germany and Japan got!  So China, after hatching this amazing 50 Year Plan towards world trade domination, took off and raced ahead at an amazing clip to finally best the US this year, nearly 20 years ahead of schedule.


This, in turn, caused the US elites to pull out their Japanese Imperialist carte blanch and set in motion the awful  machinery that will cause WWIII because Japan is dying and doesn’t understand they have zero chance of surviving WWIII even partially, much less intact.  Today, the Pentagon has announced that the Chinese are inventing too many things and need to be stopped.  HAHAHA.  And who, pray tell, invented gun powder?


Pentagon on watch for disruptive technology worldwide


China has long been considered a threat to U.S. manufacturing because of its low wages and huge population, but now the nation is seeing a boom in innovation as well. Patents for new technologies in China have taken off, and a graph showing the rise in new patents looks like a “hockey stick,” said Patrick Thomas, a principal and director of analytics for 1790 Analytics.


In September 2012, China’s defense ministry reported that military-related patents there had increased by 35% a year over the previous decade. U.S. national security policy has shifted in recent years to a greater focus on Asia, and Pentagon policymakers have developed plans to counter China’s growing influence.


Here is a counter argument by John Walsh: A Prosperous China Versus An Imperial US » CounterPunch: Tells the Facts, Names the Names


Hence if the U.S. Empire to remain the first of global military powers in a way that is beyond challenge, it has no choice but to keep China down. There is an unavoidable contradiction between U.S. military dominance and Chinese economic development. Moreover even China’s economic power by itself is at odds with the hegemonic maneuvers of the U.S. Sanctions on sovereign nations, embargoes and blockades by the US will not work if China is willing to trade with the threatened nations. This forecloses U.S. economic control of other, weaker nations.


Worse, China can force boycotts!  The US still boycotts poor Cuba even though this is utterly senseless and then there is the US boycott of Gaza which AIPAC is enforcing with terrible cruelty.  And then there is Iran who has signaled they will cooperate with US demands they disarm but only if this means they can have full, unimpeded commerce with…CHINA.


We should recall that we can be victims of this sort of thing, too especially since we have virtually no merchant marine.  Of course, since trade is bankrupting the US, China is quite pleased to keep this going as is Japan and also Germany.  Everyone wants to trade with the US since our trade is utterly retarded and destructive to US power.  What a temptation even our puppeteers in Israel can’t resist running a trade surplus with the US.


Here is a very childish editorial claiming that yes, China is producing lots of educated people but they are copy cats and stupid:  Chinese Can Innovate–But China Can’t | LinkedIn


But the innovation is not happening. Governments can build infrastructure and pump money into education and R&D. But they cannot manufacture innovation. Innovation comes from creative people who challenge authority and take risks—who exchange ideas and experiment at the fringe. This is not possible in China. And its government’s efforts are hampering innovation rather than fostering it.

…China’s patents and publications are equally questionable. Research grants usually go to the most connected professors and to those who can offer kickbacks to mid-level government officials. Chinese patent examiners are paid more if they approve more patents. They routinely approve even the most dubious filings. Chinese academics, companies and individuals have strong incentives to patent worthless ideas. With more patent filings, professors gain tenure, workers and students gain residence permits to live in desirable cities, corporate income tax is reduced from 25% to 15% and companies win lucrative government contracts. The reward does not come from innovation but from the act of filing a patent application—it is all about increasing the numbers.


When I had the honor of hosting a group of Chinese ‘students’ all of whom were adults already climbing the ladder of power in China back in the mid-1980’s, I found them to be awesome students who sucked down information and accepted my arguments while struggling to change their minds.  Changing minds is the hardest thing humans can do and they did this rather suddenly once they decided this is what they wanted to do.


They came to my house spouting Mao stuff and left talking about using industry and trade to overtake the US via innovation and discovery.  Flexibility was the #1 goal and when the Tiananmen Square crack down happened, the top student at my house was running Shanghai and he said ‘No’ to the Beijing powers and refused to turn back the clock.  So Shanghai left Beijing in the dust and became a high power international city, one of the greatest today.


I remember when Japanese goods were called ‘cheap’ and ‘cheap’ comes from the British borough in London, Cheapside, where they made simple, inexpensive export goods 150 years ago.  China did this, too.  All great trade powers start this same way!  Feigning shock that anyone would do this is silly.  Creativity doesn’t need ‘freedom,’ it needs an outlet and we know from history that all sorts of tyrannical governments also have been quite adept at innovation.  Indeed, the myth that ‘free minds’ are creative  and all others are not is just the opposite.


The great works of humanity happen when there is a great power at work which can invest in innovations and risk changes.  The US is an exception.  This is due to the creation of land-funded schools of the North which created Land Grant Colleges where poor farmer’s kids could get engineering degrees nearly for free and thus, with no burden of debt (UNLIKE TODAY) had the time, freedom and wherewithal to invent and create, this led to a huge revolution in technology in the US especially after the Civil War.


Unlike dynamic China, Japan is dying:  Over 70% say they don’t feel any benefit from Abenomics: poll.  A sales tax hike is about to take a grip on the working class. This tax is very retrograde and hits the lower classes the hardest.  A huge hunk of agricultural Japan has been utterly destroyed by tsunami and nuclear power accident problems so Japan is focused on some very tiny islands offshore the growing, powerful Chinese giant.  Encouraged by the US, Abe has pulled out all stops and is pushing his hardest to start WWIII.


For example, ignoring the loss of much of Japan north of Tokyo, Japan revises teaching manuals, says disputed islands its territory.  China, both the insane and sane half of Korea and Russia are now going to loudly protest this.  The US will remain stupidly silent.


Not content with screwing up Asia, Congress Secretly Approves Arms for Syria Rebels who are mainly al Qaeda.  The captive Egyptians are now not seeing the unelected military junta ruler they overthrew two years go, be put on trial.  No, it is the only elected Egyptian President who won his election fair and square:  Glass Cage Silences Morsi During Egyptian Trial.  This is new.


On the other hand, Bobby Seale gagged during his trial in the Chicago Seven trials due to disrupting the Democratic Party Convention in Chicago in 1968.  I actually escorted a witness for the defense to Chicago during that trial (we hitchhiked there!  A trucker picked us up in Nevada and when I told him we were going to testify against Mayor Daly’s police, he gave me $40 and said, ‘Those bastards sent me to prison! We were stunned.  He drove us all the way, too!) and it was a typical show trial.


The Egyptian show trial is totally illicit and even insane since the butchers from WWII to today were the Egyptian military.  And they are killing people every week in Egypt and no one goes to trial for this.  No, only the elected President.  South Americans are very, very familiar with this storyline which is a US/UK favorite.


Speaking of the devil, Britain’s Queen Elizabeth down to her last million; palaces crumbling.  HAHAHA.  She has only a million left of the $30 million Parliament gave  her this year.  She had to rebuild palaces for the grandchildren and their entourages which are immense in size as are her many palaces.  Parliament is suggesting she figure out how to make more money.  I suggest she get the BBC to film a show about the Royals being a bunch of murderous, crazy, sexually wild lunatics like Downton Abby and have the royals run around half naked…in winter.


That will bring in huge amounts of loot.

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Filed under Free Trade

13 responses to “China Rises Past US Due To Trade Surplus/Growth: English Queen Goes Broke, Dying Empire In Debt

  1. I suggest Her Highness sell off some of her land holdings to provide a small income for her and her family.One house is plenty.
    The rest of the land holding should be returned to the people.

  2. melponeme_k

    The Brits need to show that woman and her family the door. She needs to hand over the keys to the palaces, jewels and just go. Monarchy is dead. This woman has no magical blood supporting Divine Right. Lets finish what the Age of Enlightenment started.

    She is worth millions without the darn title, she and hers won’t starve.

  3. I was reading Albert Speer’s autobiography the other day and got a bit of a jolt where he says that Hitler seemed to see the British monarch as the real decision-maker in British foreign policy.

    “[Hitler] seemed not to be aware of the meagre influence the British crown has upon parliament and the government.” (about a conversation he had with Hitler in 1938)

    Re: free minds and innovation, the popular wisdom puts too much stress on _the idea_. I’ve known very creative people who had a lot of ideas. But ideas don’t magically turn into products in stores, and money in the bank. The recipe has other ingredients.

  4. DM

    The 30 M is just what the gov pays for palace upkeep. Their personal wealth is more than you can possibly imagine

  5. emsnews

    Snowden certainly deserves the Nobel Peace Prize and all the previous recipients such as KISSINGER and OBAMA should hand over their prizes to him, too.

  6. Luc

    ‘ The US still boycotts poor Cuba’…Poor Cuba nothing!

    Click to access Dunni_.pdf

    Signed by Clinton!

  7. CK

    What a wonderful synopsis, except for leaving out any mention of Meyer Lansky and the Mob’s control of the dames, dice, drugs and demon rum run their casino hotels in old Mob run Havana, which loss is the only reason the US govt still maintains its leaky boycott.
    If only Clinton had spent more time with Monica the world would have been a much calmer place.

  8. CH Tan


    Perhaps the West should read the encyclopedic work by Joseph Needham on ‘Civilization and Science in China’. China’s inventions were ‘re-invented’ in the West 500 – 1000 years later.

    It sank because of selfish emperors with narrow visions.

  9. Seraphim

    Huh, China invented almost everything under an “Asian despotism, stifling free thinking” etc, etc…
    I’ve heard, quite recently, that the Chinese cannot fly airplanes due to a congenital brain defect!

  10. larry, dfh

    The USPTO (Patent and Trade Office) is self-funded. Therefore, it is in their interests to accept as many patent applications as possible. Under the TPP, from the leaked Intellectual Property section, virtually anything will be patentable. The author of the USA Today piece is full of crap, like all the apologists for empire.

  11. I like what you guys are up too. This type of clever
    work and exposure! Keep up the terrific works guys I’ve included you guys
    to blogroll.

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